Chicago Drops $13.5 Million Municipal Grocery Plan After 7 Save A Lot Stores Close
Updated
Updated · Fox News · Aug 5
Chicago Drops $13.5 Million Municipal Grocery Plan After 7 Save A Lot Stores Close
3 articles · Updated · Fox News · Aug 5
Summary
$13.5 million in city-backed grocery spending is under renewed fire after Chicago abandoned its municipal supermarket plan and shifted to supporting privately run neighborhood markets.
Seven Save A Lot stores on the South and West sides closed after Save A Lot terminated Yellow Banana's operating agreement, with reports citing financial strain and a sharp drop in SNAP purchases.
Chicago's business costs also drew blame: critics pointed to Illinois' high property taxes, commercial tax burdens and the city's 10.5% sales tax, which applies to groceries.
The retreat adds to doubts about subsidy-led food-desert fixes after Whole Foods closed its Englewood store in 2022 despite an $11 million city subsidy.
If massive public subsidies couldn't save Chicago's supermarkets, what alternative models can finally solve the persistent crisis of urban food deserts?
Can Chicago successfully recover millions in lost taxpayer funds after its heavily subsidized grocery store experiments completely collapsed?