With people across North America scrambling to pay for basics like gasoline, rent and food, the idea of a not-for-profit grocery store is gaining momentum.
New York City is one place where the idea is taking hold and now, Toronto is another.
Toronto City Council recently voted to move forward with a city-run grocery store business. It became one of the first in Canada to look at the feasibility of municipally operated grocery stores.
The plan is to create more competition for the giant chains and hopefully force prices down by opening four city-run grocery stores in low-income neighborhoods.
Those behind the move suggested property taxes and development charges for stores be set aside and the benefits could be passed on to consumers.
But Neil Heatherington, CEO of Daily Break Food Bank — Toronto’s largest food bank — said he’s not sure the plan can succeed.
"Every dollar that you put through at the till, there’s about four cents that is coming back as profit," he said. "Can they match the purchasing power and the efficiency of the for-profit sector, and then deliver it with that profit motive?"
Other critics said profit margins in the retail grocery sector are very low to begin with, and big chains can often buy products in bulk at discounted prices — something the city won’t be able to do, at least in the beginning.
Other communities, such as Ottawa, are watching the Toronto experiment closely. Vancouver’s mayor dismissed the concept.
City officials in Toronto say it will take about a year to bring a plan to council that includes a financial impact report.
