During World War I, the price of daily necessities rose dramatically in Japan, causing city residents to face many difficulties. Officials in each city established a municipal retail market to ease the burden on citizens and began selling foodstuffs at reasonable prices. However, the municipal retail market in the city of Tokyo (which was the capital and most populated city) was not sufficiently developed. This paper discusses the reasons why the municipal retail market was not sufficiently developed in Tokyo prior to World War II; specifically, (1) the absence of a mayor and resistance of the city council members delayed the establishment of the municipal retail market, (2) shopkeepers strongly opposed the municipal retail market, and (3) the system to operate the municipal retail market was in disarray because of regular interference in municipal administrative affairs by the city council members.