Posted on 03/26/2023 5:21:29 AM PDT by Oldeconomybuyer
* Pandemic-related emergency funding from the Supplemental Nutrition Assistance Program, formerly known as food stamps, ended this month in most states.
* For retailers like Kroger, Walmart and Dollar General, the decline in SNAP dollars will put pressure on discretionary sales.
* Add in lower tax refunds on average this year, and shoppers have fewer dollars to spread around.
More than 41 million Americans receive funding for food through the federal program. For those households, it will amount to at least $95 less per month to spend on groceries. Yet for many families, the drop will be even steeper since the government assistance scales up to adjust for household size and income.
Food, in particular, has emerged as one of the hardest-hit inflation categories, up 10.2% year-over-year as of February, according to the U.S. Bureau of Labor Statistics.
Some grocers and big-box retailers could feel the impact more than others. According to an analysis by Credit Suisse, Grocery Outlet has the highest exposure to SNAP with an estimated 13% of its 2021 sales coming from the program. That’s followed by BJ’s Wholesale with about 9%, Dollar General at about 9%, Dollar Tree at about 7%, Walmart’s U.S. business with 5.5% and Kroger with about 5%, according to the bank’s estimates, which were based on company filings and government data.
Retailers that draw a higher-income customer base, such as Target and Costco, should feel comparatively less effect, Short said. If nothing else, the dwindling SNAP dollars could shift shoppers from one retailer to another, she said, as major players seek to grab up market share and undercut on prices.
(Excerpt) Read more at cnbc.com ...
Maybe some of us normal people can afford steaks if the price goes down.
Great news! Keep reducing welfare across the board.
Of course, that's 10 percent on top of 10 percent the year before.
I hate this sorta nonsense. PPI is up, but it ain’t up nothing like CPI.... or profits. Corporate profits are up 50% from before covid.
US spending on food stamps increased 102% since 2019.
I wouldn’t plan on meat going down any time soon. Most of the cattle were sold off last year due to drought and replacement calves are selling for not quite double what they traditionally bring.
That’s the big secret behind SNAP - it’s payoffs to big retailers laundered through a burgeoning underclass.
shoppers have fewer dollars to spread around.
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An 0bama phrase. Gee maybe able people will have to work to eat.
And is it Trump's fault that only really large cones are available for JoeY?
America has to do something about all its obese poor people on food stamps.
Gee maybe able people will have to work to eat.
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Like people in their late 70s, 80s and 90s are being snapped up by employers all across the nation ... you know the people who actually depend on SNAP.
Joey is always mowing down on giant over sized ice cream cones. When Trump had a little formal dessert size two scoops, all hell broke loose.
We are a spoiled country that kills ourselves with forks and spoons. Carbs and sugar are self inflicted gunshots.
That’s why I put “able” in my sentence.
Yes
SNAP/EBT
That’s why they cater to it.
Without welfare, these people would have to work for a living. Isn't that, like, unconstitutional or something?
I think it’s funny they try to put the focus on the poor grocery store losing money. Lol. Just cut the CEO bloated disgraceful salary and the company will more then makeup the loss of the small amount of food assistance.
A lot of us are still able, but no one hires us because we are a liability. So we should starve, right?
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