Filed under: Personal Finance, News, The Economy, Savings, Budget
Leading wholesale retailer Costco has announced that it will now accept food stamps in its stores nationwide. This news comes as a shock to many, who see Costco as catering to elite shoppers. Yet, this should not be surprising as more Americans than ever are using government assistance to feed their families — 10 million people have gone on food stamps in the last two years alone. This is leaving shopping clubs like Costco and Sam’s scrambling to attract an entirely new realm of consumer, who may not be technically “poor.”
Up until recently, some wholesale clubs were skeptical poor people would be willing to pay the $50-a-year membership fee or would be interested in buying food in the bulk quantities for which the stores are famous.
But now, in this economy, stores are battling for every dollar and see a big potential market in the growing ranks of food-stamp recipients. From warehouse clubs to supermarkets and mom-and-pop groceries, stores are retraining their cashiers and hanging new signs to welcome such customers.
”Certainly this economy was a wake-up call,” Costco chief financial officer Richard Galanti recently told investors. ”It is not just very low-end economic strata that are using these.”
… The U.S. Department of Agriculture said nearly 200,000 retailers nationwide now accept food stamps, 20 percent more than in 2005.
Executives at Costco are finding that poorer families are actually eager to pay the $50 dollar membership fee to take advantage of the fact that the company now accepts food stamps. And the retailer believes that poorer families will actually save more money in the end by buying in bulk, even if the initial investment seems high.
If you need to join the ranks of the 39 million Americans on food stamps (also known as Electronic Benefits Transfers), there is no reason to be ashamed. In fact, now is a better time than ever to seek out government assistance in buying food if you need it. The social stigma attached to food stamps is essentially gone as so many people are in need, and now more companies than ever are rising to meet the needs of this customer. You might be surprised to learn that you qualify.
Learn how to apply for food stamps, or about the WIC program, and click below to learn about some of the thousands of retailers that accept EBT. Check your local retailers for more shopping options.
Major Retailers That Accept Food Stamps