It’s Time to Nationalize Supermarkets

Supporters of capitalism like to claim that the supermarket is a wonderful capitalist invention. In fact, the supermarket has been a central figure in pro-capitalist propaganda since the Cold War. For decades, popular culture has linked socialism of any variety with images of grey, joyless stores and empty shelves.

This image is so persistent that we even saw people sharing pictures of supermarket shelves emptied by pandemic panic-buying as if it was a taste of socialism at work. The idea that these photos came from supermarkets operating under in a capitalist economy doesn’t seem to have crossed their minds.

Such propaganda has fostered a common-sense notion that publicly owned supermarkets must inevitably lead to a lack of choice or to food shortages. However, the experience of capitalist supermarkets themselves disproves the idea that bureaucratic planning and centralized control always gives rise to such problems.

Supermarkets don’t spontaneously adapt to the signals of a vibrant free market: they are highly planned economic structures. Decisions are made months or years in advance to secure reliable supply chains, meet seasonal demand, and keep shelves filled.

Moreover, far from being a diverse industry, supermarkets tend toward consolidation. In Australia, just two supermarket chains account for over 65 percent of market share, in a pattern that is repeated all over the world. The business model of supermarkets relies on scale. They could fairly be described as natural monopolies — or in Australia at least, duopolies.

The modern supermarket is the result of large-scale logistics engineering and industrial food production. Neither of these things are inherently capitalist, although the inequality and exploitation that currently define the food system certainly are.