Lee on public markets operating at $3.6M loss versus grocery model
Lee asks about differences between public markets operating at a loss and the new grocery stores. Peck explains public markets support small businesses with discounted rent, while grocery stores focus on food affordability through a different model.
I had one more question on retail markets.
EDC has three existing retail markets that you operate, is that right?
Retail markets or public markets?
Public.
We actually operate six, but three we directly manage.
And those operate at a loss right now, I believe, of $3.6 million in FY25.
Correct.
So that included no direct subsidy to the food in those markets and was still operating at a loss?
Yes.
So can you speak to the differences in design between those retail markets and the public grocery stores and how EDC will minimize the operating subsidies in these new grocery stores?
Yeah, these are very different, although they're both food related, these are very different.
These are for small businesses, sort of diverse businesses, culturally relevant businesses for that neighborhood and sort of bringing these foods and these vendors there.
It's, you know, it has, it's a kind of a community place for people in the neighborhood to go.
And so.
A lot of the projects and tenants that we have in EDC assets are not market rate.
We want to support these small businesses.
We want to support these communities.
And so that's what the public markets are.
NYC Groceries is not about supporting small businesses.
It's about running a grocery store and bringing food affordability.