After testing food stamps in New York, Costco Wholesale said Wednesday that it will start accepting themat its warehouse clubs nationwide.
This is a big step for a retailer that has catered to bargain-hunting, and a grim-reality for retailers and their customers. The number of Americans relying on government food subsidies to eat recently hit a record 36 million.
Company officials said they had doubted many customers would use food stamps but it turned out new members said they were joining precisely because the company accepted the assistance program.
Most users no longer receive stamps, but instead carry the value on a card that can be swiped at checkout much like a bank debit card. That makes it easier and more discrete for shoppers and speeds the checkout and reimbursement processes for retailers.
Food retailing consultant Bill Bishop, of Willard Bishop Consulting, said Costco’s decision shows how pervasive the pressure on consumers has become. He said more and more grocers are seeing their sales peak and fall based on when assistance benefits are distributed.
http://www.usatoday.com/money/industries/retail/2009-10-28-costco-accepts-food-stamps_N.htm
Tags: costco, food stamps
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