When I lived in Pennsylvania, the state-run liquor stores had a monopoly on selling wine and liquor. This survived Republican and Democratic administrations for decades.
Mamdani’s proposed grocery stores aren’t a monopoly. Whether they’re a good idea remains to be seen, but they’d be competing against privately owned grocery stores. As I understand them, they’re mostly intended for areas without a local grocery store (food deserts), which seems like a reasonable thing to explore.