Seattle City Council addresses grocery store struggles amid rising operational challenges

The Seattle City Council's Finance, Native Communities, and Tribal Governments Committee convened on July 2, 2025, to discuss pressing issues affecting local grocery stores and small businesses. A significant focus of the meeting was the challenges faced by grocery stores, particularly in urban areas like Seattle, where they operate on narrow profit margins of 1 to 3%. Council member Hollingsworth highlighted the struggles these businesses encounter, including theft, supply chain disruptions, and rising operational costs.

Hollingsworth emphasized the critical role grocery stores play in community food access, noting that many residents rely on them for essential services, including pharmacy access. The potential closure of stores, particularly following the merger between Safeway and Kroger, raised concerns about creating "food deserts" in the city. The council member urged that grocery stores be treated differently in tax discussions due to their unique contributions to community health and welfare.

Council President and other members echoed these sentiments, expressing a desire to maintain food access and support local grocery stores. They acknowledged a concerning trend of declining food donations from grocery stores to food banks, which further complicates the issue of food security in Seattle.

The committee also discussed a proposal aimed at providing tax relief to small businesses, which was met with mixed reactions. While the proposal aims to lower taxes for 90% of businesses, concerns were raised about the impact on medium-sized businesses, which often rely on larger businesses for their operations. The council members committed to ongoing engagement with small business stakeholders to ensure that the proposal meets the diverse needs of the business community.

In conclusion, the meeting underscored the importance of grocery stores in Seattle's urban landscape and the need for thoughtful tax policies that consider the unique challenges faced by these essential businesses. The council plans to continue discussions to find a balanced approach that supports both food access and the local economy.