New York City Plans First City-Owned Grocery Store in Bronx

Officials announced the site of the first city-owned grocery store on Monday. The 20,000-square-foot location will be in the Bronx’s Hunts Point neighborhood. The store forms part of a $70 million plan that includes outlets in each of the city’s five boroughs.

A private operator will run the store under city pricing rules, and the South Bronx site will be part of a new affordable housing development.

Officials said the store, scheduled to open next year, aims to address limited affordable grocery options in one of the city’s poorest neighborhoods. They cited data showing 77 percent of households in surrounding areas cannot afford basic needs and more than 50 percent have relied on public assistance in the past year.

The plan still requires City Council approval.

Under the proposal, the stores would not pay rent or property taxes, which officials say would reduce overhead costs and allow lower prices for shoppers. Some small-business owners and grocery operators have raised concerns that the city-run stores could affect existing businesses. One grocery chain executive stated that his company might exit the market if the plan proceeds.