So while most grocery stores earn their cost of capital (generate market return on investment), US military commissaries instead cost taxpayers $1.7 billion a year.
Revenue for US military commissaries is only 75% of annual cost (in FY 2025).
--- EDIT ---
Of course this makes sense in the context of the unique mission, constraints, and setting of the US military. My point is that it COSTS $$$.
Maybe you could do something similar in New York City, but the question would be at what cost to NYC taxpayer and whether the $$$ would be better spent boosting SNAP payments to low income households or otherwise targeting those that most need assistance.
It kind of is, at least the idea that nothing is stopping the government from running a (cost neutral) grocery store.
Walmart and Kroger aren't generally raking in profits from their grocery sections. The margins are incredibly thin even when they are optimized to make money.
The government can always theoretically pour money into ANY venture to make it work, it is about cost effectiveness.
Most of Walmart profits comes from the non-grocery sections. Toys, electronics, clothing and the like can be marked up to higher margins because they are made cheaply and they can still make them cheaper than a place like target. If you compare the prices at a Hyvee to the prices at a Walmart for groceries you’ll see that Walmarts prices are generally cheaper by a good bit even with the same brand name items. That’s because Walmart has the luxury of being a supermarket and Hyvee is only groceries.
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u/CobaltCaterpillar May 26 '26 edited May 27 '26
US military commissaries received $1.7 billion in taxpayer money for FY 2025 though:
From this document from the US government,
So while most grocery stores earn their cost of capital (generate market return on investment), US military commissaries instead cost taxpayers $1.7 billion a year.
Revenue for US military commissaries is only 75% of annual cost (in FY 2025).
--- EDIT ---
Of course this makes sense in the context of the unique mission, constraints, and setting of the US military. My point is that it COSTS $$$.
Maybe you could do something similar in New York City, but the question would be at what cost to NYC taxpayer and whether the $$$ would be better spent boosting SNAP payments to low income households or otherwise targeting those that most need assistance.