Proposed government-owned stores raise concerns in Chicago

(The Center Square) – A Chicago Republican says city-owned grocery stores do not make sense.

Mayor Brandon Johnson announced a partnership with the Economic Security Project last September, with the intention of opening a municipally-owned grocery store. ESP supports public options as alternatives to private companies.

ESP partnered with a firm called HR&A, which released a study supporting the idea of city-owned stores.

Jason Proctor is the 33rd Ward Republican Committeeman and an Illinois Senate candidate. He said there should be stores in food deserts, but they should be owned and operated by professional business people.

“Take a look at somebody like an Aldi, who is a trusted partner down in those neighborhoods. I would rather leave it up to those who’ve had success,” Proctor said.

Proctor wondered if there would be accountability with a city-owned store.

“And therein lies the trick. Who others’ hands are in this pie? Who are we using for vendors?” Proctor asked.

A statement from Johnson’s office suggested that the city would pursue state funding through the Illinois Grocery Initiative, which intends to address inadequate access to fresh foods. The initiative provides $20 million of state taxpayer money to support new and existing grocery stores in food deserts across the state.

Proctor opposes the plan for a municipally-owned stores. He said the city does not need to be owning stores, especially in a business with very thin margins.

“You need to have an understanding of how operations work, how employees should interact with the public. There’s a lot of things that need to take place in order for it to be a success, or just another throwing money at a problem that’s not going to ultimately lead to a solution,” Proctor said.

Proctor suggested that city government address core problems before opening stores. He said there’s a reason Walmart left Chicago.

“None of those three stores had been profitable since the day they opened up, and a big part of that is the theft and the shrink,” Proctor said.

According to CWBChicago, shoplifting reports have soared 45% this year, making 2024 the worst year for retail theft in the city since at least 2003.