Marketplace Morning Report: "Do city-owned grocery stores work?"

Date: November 18, 2025
Host: Sabri Benishore (in for David Brancaccio)
Episode Theme:
This episode examines the economic news of the day, focusing specifically on the growing interest in city-owned grocery stores as a way to address affordability and food deserts in urban areas. The discussion includes analysis of current models, expert commentary on feasibility, and real-world examples from various U.S. cities.

Key Segments and Discussion Points

1. China as the U.S.'s Largest Official Creditor

[01:27 - 02:39]

• Reporter: Nancy Marshall Genser
• New research from AID data (College of William and Mary) shows that China is the largest official creditor to the U.S., not just to developing countries.
• Loans from Chinese state-owned lenders have financed:
  • Airport terminals in New York and Los Angeles
  • Data centers in Northern Virginia
  • Acquisitions of high-tech U.S. companies
  • U.S. corporations such as Disney, Halliburton, Amazon, and AT&T
• While some loans help Chinese firms access critical U.S. tech, many are simply profit-driven.
• Quote:
  • "Aid data says Chinese owned lenders helped bankroll terminals at airports in New York and Los Angeles and data centers in Northern Virginia." (Nancy Marshall Genser, 02:01)

2. Escalating Utility Bill Debt in the U.S.

[02:39 - 04:20]

• Reporter: Kimberly Adams
• New data from The Century Foundation and the nonprofit Protect Borrowers signals a surge in Americans falling behind on utility bills.
  • Nearly 14 million Americans—about 1 in 20 households—have utility debt in collections or soon will.
  • Since 2022, the average overdue utility balance rose 32% to almost $800.
  • Heating a home this winter is expected to cost 7.6% more, nearly $1,000 for the season.
• Families face tough choices among essentials: utilities, food, childcare, housing.
• Quotes:
  • "Families need electricity. That's why utilities often rank right behind home and auto loans when it comes to which bills families must pay first." (Julie Marghetta Morgan, Century Foundation, 03:22)
  • "Since 2022, the average overdue balance on utility bills climbed 32% to nearly $800 today." (Julie Marghetta Morgan, 03:34)
  • "Families must choose between paying their utility bill, higher costs for food, childcare and, you know, unaffordable housing, meaning the issue of affordability will be a personal and political issue for some time to come." (Elaine Bigelow, Georgetown Center, 04:17)

3. Can City-Owned Grocery Stores Solve Food Deserts and Affordability?

[06:10 - 09:00]

• Host: Sabri Benishore introduces New York City Mayor Elect Zoran Mamdani and his campaign for public grocery stores as a response to urban food deserts and high food prices.
• Economic Case:
  • City-run grocery locations would dodge rent and property taxes.
  • Nevin Cohen (CUNY Urban Food Policy Institute) says public markets could reduce retail prices by 5–10%.
  • Defense Department commissaries offer groceries 15–25% below commercial chains.
• Financial Challenges:
  • Steven Zagor (Columbia Business School): City-run stores could need ongoing subsidies, similar to public transit or mail.
  • Risk of repeating failures: Kansas City's city-backed grocery closed after a decade due to low traffic attributed to area crime.
• Success Stories:
  • Baltimore:
    • Publicly supported grocery opened with $1.5 million in city/state incentives.
    • Streamlined city permitting aided long-term viability.
    • Community consultant Biff Browning on price savings from volume buying and stable contracts.
    • Quote:
      • "I would not have imagined it until I saw it. How much prices can come down when you're able not only to have a volume buy, but to have a system that allows you at the beginning of the year to say, we forecast we're going to buy this much for the year so we can lock in a price." (Biff Browning, 08:11)
  • Atlanta:
    • $6 million in public funding helped open a grocery store downtown.
    • Higher than expected sales (especially fresh produce) attributed to a public-private partnership with the local Independent Grocers Alliance.
    • Public partners acted as translators between city requirements and grocer operations.
    • Plans for further expansion.
    • Quote:
      • "Would help to serve as the translator between government and our requirements and ... what the grocer could actually deliver." (Eloisa Klementich, Atlanta Economic Development Authority, 08:51)

Notable Quotes & Takeaways

• On Government-Run Grocery Viability:
  • "A government owned supermarket is a mission driven business at best. Maybe they'll break even, but it's probably not likely. So there would be an ongoing subsidy. Just like the mail system is subsidized, just like Amtrak is subsidized."
    — Steven Zagor (Columbia Business School), [07:12]
• On Community Impact:
  • "We wanted to make sure that not only that they had that incentive, but that they had a streamlined approach to permitting any type of city process needed."
    — Felicia Porter (Baltimore City Council), [07:49]
• On Purchasing Power and Affordability:
  • "How much prices can come down when you're able not only to have a volume buy, but ... to lock in a price."
    — Biff Browning, [08:11]

Segment Timestamps

• China's Lending to U.S.: [01:27 - 02:39]
• Utility Bill Debt and Affordability Crisis: [02:39 - 04:20]
• City-Owned Grocery Stores Analysis: [06:10 - 09:00]
  • Expert financial analysis: [06:38 - 07:30]
  • Baltimore Model: [07:30 - 08:11]
  • Atlanta Model: [08:25 - 09:00]

Overall Summary

This edition of Marketplace Morning Report delivers a brisk yet thorough review of affordability concerns in the U.S., from the unexpected depth of Chinese lending to American institutions, to the alarming rise in household utility debt. The centerpiece is a timely look at the renewed push for city-owned grocery stores, offering practical economic analysis, expert skepticism, and inspiration from cities experimenting with new models. The episode spotlights the complexity of tackling affordability, the necessity for public-private partnerships, and the stubborn persistence of food deserts despite good intentions.

Listeners come away with a nuanced understanding of both the promise and limits of municipal initiatives designed to make cities more livable for all residents.