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Grocery Stores Could Lose Millions Due to Cuts in Food Stamps Program

February 22, 2018 from the Abasco.com/en:

"President Donald Trump’s administration’s proposal to cut the Supplemental Nutrition Assistance Program (SNAP, known as “food stamps”) for low-income people would have a serious impact on not only millions of beneficiaries, but also for the industry of supermarkets."

"The unemployed, the elderly and low-income working families with children would be the most affected by the proposed food stamps cuts of more than $213 billion in the next ten years, according to a report from the Center on Budget and Policy Priorities."

"CNBC also reported that according to data prepared by the retail consultancy AlixPartners, retailers could lose up to $70.7 billion in sales over the ten-year period."

"The largest savings in the food stamps program budget would come from cutting family benefits by more than $260,000 million over ten years – about 40% – and using approximately half of these funds to provide households with a package of non-perishable food purchased by the government, instead of the food that is purchased by the SNAP beneficiaries in the supermarkets."

"According to Fortune, the retailer with the highest risk of lost sales is Walmart. The largest grocery chain in the US gets 56% of its food sales. AlixPartners estimates that Walmart, where 18% of all food stamps were redeemed in 2013 (the last year in which the figure was disclosed), would lose $12,700 million in sales during the decade that SNAP cuts are made."