The Current

Can public grocery stores work in Canada?

Apr 7, 2026
Mike von Masso, a food economist at the University of Guelph who studies food systems and pricing, and Errol Schweitzer, a grocery analyst who advocates commissary-style public stores, debate public grocery stores in Canada. They discuss commissary models, startup and operating costs, scale and purchasing power, subsidy mechanisms to lower prices, and political tradeoffs around public investments.
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INSIGHT

Consolidation Drove Big Grocery Price Rises

  • Grocery prices rose ~50% since 2016 and market consolidation (few chains) concentrates pricing power.
  • Errol Schweitzer links higher consumer prices to large chains' ability to pass supplier costs into retail prices despite thin profit margins.
INSIGHT

Military Commissary Shows Public Grocery Model Works

  • The U.S. military commissary offers groceries about 25% cheaper by subsidizing retail gross margins (labor, utilities, admin).
  • Errol Schweitzer says this public model shows large-scale government-run retail can deliver consistent consumer savings.
ADVICE

Budget Realistically For Public Grocery Start And Operating Costs

  • Implementing a successful public grocery requires upfront capital and annual subsidies to cover gross margins and operations.
  • Schweitzer estimates ~CA$350M startup and ~CA$300M/year to run a scaled 50-store public system in Canada.
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