This runs into the problem of charity out-competing potential business ventures.
But this is moot as the city is planning to run loss-making stores where private stores are non-viable. There is no risk of outcompeting businesses which aren’t even there. And if there is a concern of outcompeting private stores, running stores offering cheaper products than any private store could do so in the area would destroy those businesses just as effectively.
The decision has been made to entirely sacrifice any pretence of private enterprise in the supermarket space in certain areas in Chicago. I’m merely arguing that, given this decision, there are more effectively ways to use public funds.