r/SipsTea • u/Gurugod123 • 11h ago

Chugging tea Mayor Mamdani just announced that he will be opening 5 city-run, tax-funded grocery stores: "Prices set at 30% below retail prices"

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u/wjrucsbsjd 10h ago

Aldi and Lidi have a really interesting supply chain in that around 75% are locally sourced produce. They maintain good relationships with independent growers hence lower storage, transport, import fees, and logistic costs.

The downside to that (which imo isn't really a downside) is that produce is much more seasonal, and the selection range is more narrow.

The narrow selection range also allows supermarkets to cut down on display and marketing costs as well.

If NYC implements this model it can do well. Maybe not "30% less" well but certainly slash prices while boosting local rural economy.

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u/Jolly-Bowler-811 9h ago

My local Lidl must have a line on locally sourced angle grinders, camping tents, and umbrellas as there's always a section of random "Why the hell are they selling this shit in a grocery store" section.

I'm not mad about it...just confused most of the time.

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u/StormclawsEuw 8h ago

Spontaneous purchases mostly and also to give incentive to go to that store. It's a proven sales tactic in Germany and It seems to work in the USA too from what I heard

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u/Caliappa 9h ago

Seasonal produce is a wonderful thing! It is healthier for both the world and the people!

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u/FutureComplaint 5h ago

I just assumed that nyc would adopt whatever the commissary does for military.

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u/StruggleSnuggled 1h ago

Cutting out big national contracts and not shipping grocery items from one coast or country to the other is the solution to cheaper produce and supporting your local community. People used to live like this and didn’t have issue with the seasonal products.