Your next story may be as close as your local grocery store. Here are some grocery-related story ideas that can easily be localized to your own community.
City-owned grocery stores
Zohran Mamdani won the New York City Democratic mayoral primary in June with many campaign promises that focus on inflation, affordability, and accessibility for all residents of the city. In particular, Mamdani proposed placing municipal-owned grocery stores in communities that currently lack options for fresh and healthy food to help reduce food insecurity in the city and lower grocery prices. The idea has sparked some controversy, especially from his political opponents who believe the plan would “devastate the local bodegas and the local stores and the local supermarkets.”
The idea of city-owned grocery stores isn’t new. Some cities have tried them, some are planning to soon, and a few currently operate in rural areas around the country. However, several of these city-owned projects have recently failed, while others are facing challenges that may force them to close as well. Grocery stores already have slim profit margins, and many are only able to produce sustainable profits by utilizing economies of scale and becoming large chains. This creates challenges for cities operating their own stores, which is why many often opt to partner with private businesses or nonprofit organizations by either subsidizing their operations or offering tax incentives to serve areas that need grocers. New York City has even operated “government-subsidized markets, in which private vendors can sell their produce in a well-maintained, low-rent space” since the 1930s.
Despite the challenges, a successful government-run grocery store is possible, as evidenced by military commissaries, which are entirely government-owned and operate as non-profits, and have prices averaging 18-25% less than those charged at private grocers.
SNAP Benefits
The recent federal budget bill is set to make the largest cuts to the Supplemental Nutrition Assistance Program (SNAP) in the program’s 86-year history. SNAP, formerly known as food stamps, allows many Americans to purchase groceries they wouldn’t otherwise be able to, and is an economic driver for the grocery industry. The U.S. Department of Agriculture’s own report estimates that “every $5 in new SNAP benefits generates as much as $9 of economic activity.” Researchers have also found that SNAP benefits lead to “more workers in food and grocery stores, more employment, higher real payroll, higher real sales, and more stores.”
As one independent grocer told CNN, the SNAP program accounts for roughly a third of its sales, and any cuts to the program would directly impact its business as well. While small grocers are likely to be hit the hardest with the cuts, larger chains like Walmart and Kroger will also be affected. Nearly a quarter of all SNAP benefits are estimated to be spent at Walmart, and another 8% at Kroger. As of September 2023, there were over 261,000 authorized SNAP retailers who collectively redeemed $124 billion in SNAP benefits that year.
Private labels
With more consumers concerned with the rising cost of groceries, many are “trading down” from national and name brands to generic and store brands to stay within their budgets. However, calling the switch “trading down” may no longer be the case, as these private labels may be hitting their “golden era” with retailers investing more into their own brands. Last year, Walmart introduced a new private label grocery line to their shelves called “bettergoods” with over 300 items, many priced under $5.
Other grocers are also expanding their selections and are seeing steady increases in sales year over year. According to the Private Label Manufacturers Association, sales of private label goods in 2023 accounted for nearly 21% of grocery industry unit sales and created about $236 billion in sales that year.
Private labels have steadily become more popular among consumers who consider them just as good, if not better, than national brands, and not just among budget-conscious shoppers. The senior vice president of private brands at Walmart told Store Brands magazine that although they are seeing ”growth across all demographics, the growth is especially apparent among Gen Z and higher-income groups.”
