Proposed SNAP Cuts Could Hurt Retailers, Suppliers — FoodDive.com

Proposed changes to SNAP (food stamps) may remove many current recipients from the program, which could have a significant effect on the grocery business:

The threat of losing two million SNAP customers would have big sales implications in the already thin-margined grocery space, particularly among larger retailers. The U.S. Department of Agriculture, which administers the program, reported in 2016 that 81% of SNAP dollars are spent at superstores like Kroger and Target. Walmart alone collects about $13 billion in annual sales from SNAP recipients – about 18% of spending in the program.

P.S. If you are food supplier, this news might concern you. Prepare now for the possibility of sea-changes in sales by talking with one of our experts. He or she can help you optimize your business practices in a way that maximizes profits, regardless of market changes.

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