Across the nation, businesses have been shutting down or moving to areas with lower crime. The shopping experience for customers has changed. Instead of picking up a quick few things at the local store, we have to call assistance to get laundry detergent and deodorant out from behind locked plastic panels. Theft has gotten so bad that it’s just not financially feasible to stay in business at certain locations. Big-name supermarkets have pulled out of crime-ridden areas, leaving what some call food deserts, especially in low-income neighborhoods. The West Coast politicians in Washington think they have a solution, though: state-run grocery stores. Is this the cure that will finally solve this problem – or a curse to cause even more?
State-Run Grocery Stores
Earlier this month, House Bill 214 was introduced in the Evergreen State by the Democrats as a way to combat the exodus of supermarkets in some neighborhoods. If approved, the bill would allow cities to create state-run grocery stores in areas that have limited access to purchase supplies. The kicker here is that the proposed bill would also allow cities to acquire the land through eminent domain, stripping potentially low-income residents of their property – for a “fair market value,” of course.
Last year, several grocery chains closed in the Seattle area, causing some officials to worry their constituents wouldn’t have easy access to food and prescriptions. One such chain was Kroger. Fay Guenther, president of UFCW 3000, the union representing the workers of most of these stores, pulled no punches. “Kroger’s closures put profit over people, plain and simple,” she declared. "This corporate strategy might please Wall Street investors, but we know it’ll create food deserts in our neighborhoods and disrupt the lives of hundreds of workers already displaced by a housing affordability crisis now ten years in the making."
Kroger, however, blamed the closures on “a steady rise in theft and a challenging regulatory environment that adds significant costs.” In a statement to KOMO News, the supermarket’s spokesperson said: "We can no longer make these stores financially viable. Despite doubling our safety and security investment over the past years, these challenges remain."
Newly elected Seattle Mayor Katie Wilson used state-run grocery stores as part of her platform, and Democrat Rep. Darya Farivar is helping to make that dream come true with the proposed bill. If passed, cities can acquire land through eminent domain, they can lease sites to private or nonprofit organizations or operate the stores using city employees. Locales wishing to establish these public stores could apply for capital grants from the Washington State Department of Commerce. As The Center Square pointed out, revenues could be used to purchase or lease the property, redevelop grocery sites, infrastructure, and operations of the store.
Weighing the Pros and Cons
Obviously, there is a lot of controversy about having state-run grocery stores. Arguments for such a program suggest one of the biggest benefits is to improve access to food and needed supplies in underserved areas. Some believe there is a potential for lower prices since public stores don’t need to earn profits for shareholders. Does this mean products will be sold at cost or close to it to make things more affordable for the poor?
Those in favor also argue that the establishments can set their own goals, such as including items that meet nutrition standards, use local food sourcing, and even offer culturally appropriate foods. Job creation is another factor; however, it’s hardly a benefit limited to the state-run stores, and grocery stores create jobs anyway.
On the other hand, one of the biggest concerns is the financial risk to residents. Grocery stores don’t tend to have a high revenue, and for state-run grocery stores, there’s a chance of losing profits, then the taxpayer must cover those losses. Plus, sustainability is an issue. How long will the public be forced to support these ventures?
Competition with private businesses is another worry. State-run grocery stores could get tax exemptions, lowered rent, and funding not available to private businesses. This could lead to more store closures, which would mean less availability of foods and other necessities.
It would also mean the public would become even more dependent upon the government.
“Cities shouldn't be in the grocery business,” Washington Policy Center Budget and Tax Policy Director Ryan Frost said in an email to The Center Square. “If a grocery store can't make a profit in an area, a government-run store won't either. It'll just burn through taxpayer money and divert tax revenue to cover losses. Instead, cities should fix whatever market problems drove their grocery stores away in the first place.”
Seattle would not be the first city to implement state-run grocery stores. In 2019, Baldwin, FL, opened one that later closed in 2024. A success story comes from the City of St. Paul, KS, a small town of about 600 residents who were without a store for 20 years until 2005. That establishment is still operational today.
While state-run grocery stores can be beneficial in certain circumstances, such as Baldwin, FL, where the nearest place to buy food is a good distance away, well-populated areas like Seattle likely won’t find the same benefit – or success most likely. If a business can’t survive because of theft, what makes the city think it can do any better?
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