All government spending comes from the pocket of the taxpayer. If theft is the reason Walmart and Whole Foods exitted Chicago, a municipal grocery store gives thieves access to taxpayer money.
Whatever is at the root of the issue, a government-run store with no knowledge or incentives generated by profit and loss will only exacerbate the problem. When you subsidize something you get more of it—unfortunately that includes wealth destruction and theft.
Source: The Problem with a Chicago Municipal Grocery Store – Foundation for Economic Education
