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.
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