City-owned Grocery Store Initiative Draws Criticism After Flop
WHO:
Fox News - Rob Carr, President and CEO of the Illinois Retail Merchants Association
Fox News - Bryce Hill, Director of Fiscal and Economic Analysis at Illinois Policy
Fox News - Nicole Huyer, Free-Market Policy Analyst
Fox News - State Rep. Sonya Harper, D-Chicago
NY Post - Mayor Zohran Mamdani
WHAT:
Fox News - The total sales tax in Chicago is now 10.5%, making it the second highest of any city in the nation.
Fox News - The Illinois Retail Merchants Association President and CEO Rob Carr stated that government-run grocery stores have failed everywhere they have been implemented due to not recognizing marketplace realities.
Fox News - Bryce Hill, director of fiscal and economic analysis at Illinois Policy, noted that the areas where government grocery stores are failing are not friendly to business, citing Illinois as having the second-highest property taxes in the nation.
Fox News - Chicago has abandoned plans for a municipal supermarket.
Fox News - The city spent $13.5 million on grocery stores that are now on the brink of collapse.
Fox News - Seven Save A Lot stores on Chicago's South and West sides have closed.
Fox News - The Whole Foods in Chicago’s Englewood neighborhood closed in 2022 after receiving an $11 million Tax Increment Financing (TIF) subsidy.
NY Post - Mayor Mamdani plans to open five city-owned grocery stores in New York City.
WHERE:
Fox News - Chicago, Illinois
Fox News - Englewood neighborhood, Chicago
NY Post - New York City
WHEN:
Fox News - The closure of the Whole Foods in Englewood was reported in 2022.
Fox News - The total sales tax in Chicago increased on August 1.
WHY:
Fox News - Hill emphasized that high property taxes and sales taxes are significant barriers affecting grocery store operations in Chicago.
Fox News - Critics argue that government-backed grocery stores fail to address the realities of the marketplace.
Fox News - The closures of grocery stores highlight the shortcomings of government-backed solutions to food access.
Fox News - High property taxes and sales taxes in Chicago are cited as barriers to grocery store operations.
HOW:
Fox News - Chicago officials opted to support privately operated neighborhood markets instead of opening a city-owned grocery store.
Fox News - The stores managed by Yellow Banana closed after Save A Lot terminated its operating agreement due to financial challenges.
(UPDATED August 5, 2026 20:35 UTC)
Chicago has now implemented a total sales tax of 10.5%, making it the second highest in the nation. Rob Carr, President and CEO of the Illinois Retail Merchants Association, pointed out that government-run grocery stores have consistently failed due to a lack of understanding of marketplace realities. Bryce Hill, director of fiscal and economic analysis at Illinois Policy, highlighted that the combination of high property taxes and sales taxes creates significant barriers for grocery store operations in the city.
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(UPDATED August 5, 2026 18:30 UTC)
Chicago has decided to abandon its plans for a municipal supermarket, following the closure of several grocery stores, including seven Save A Lot locations on the South and West sides, which have recently shut down. The city has invested $13.5 million in grocery stores that are now facing financial difficulties, and critics argue that government-backed solutions have not effectively addressed food access issues, particularly in light of high property and sales taxes. Meanwhile, in New York City, Mayor Zohran Mamdani is planning to open five city-owned grocery stores, aiming to tackle similar challenges in food availability.