Costco to accept food stamps nationwide

[RamboLiberal]

Source: MSNBC/AP

PORTLAND, Ore. - With many families suddenly struggling to feed themselves, the big warehouse clubs known for king-size packages of steak and jumbo boxes of Cheerios are increasingly competing with grocery stores for the 36 million Americans now on food stamps.

Costco Wholesale Corp. said Wednesday that it would start accepting food stamps at its warehouse clubs nationwide after testing them at stores in New York. That is a big about-face for a chain that has catered to the bargain-hunting affluent with its gourmet foods, and a reflection of the fact food-stamp use has hit new highs.

Costco joins warehouse-club competitor BJ's Wholesale Corp., which started taking food stamps last April, and Sam's Club, which began accepting them in the fall of 2008.

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.



Read more: http://www.msnbc.msn.com/id/33509601/ns/business-retail/

[Oregone]

1. Too bad their membership isn't sliding scale

Thatd help their business and people

[itsrobert]

2. Why should I subsidize others to shop at Costco?

I don't like that idea at all. I'm all ready tax enough around here. I'm lower middle class and get the shaft every time.

[Oregone]

4. I meant sliding scale in terms of their business model...

So Costco would take the losses to promote business. Unfortunately, they don't do this.


That being said, food stamps are one of the most effective forms of stimulus, per Moody study, that there is, injecting more than $1.70 of cash into the economy for each $1 dollar spent. In the case of buying bulk at Costco, they could be having an even greater stimulative effect on the economy because profit margins are lower; so for each dollar spent, more production is stimulated (directly and tangentially) per dollar because the same overall product will, over a certain amount of time, be purchased (just at a lower cost per KG).


Whether they shop at Costco, Food for Less or Ware-mart, they are stimulating the economy and feeding their children. Promoting social programs for people in need, and improving ones economy, is just maybe worth subsidizing purchases at places you frown upon.

[RamboLiberal]

5. It's not paying their memberships

And poor on food stamps may be getting a better bargain at Costco on bulk items. Might be a better deal for taxpayers if we did pay the membership.

[Ian David]

7. I think I saw an "I'm all ready tax enough around here" sign at a teabagger rally.

[itsrobert]

8. Fuck you

I'm no God Damn teabagger.

[Ian David]

9. Bwahahaha! I win!

[ET Awful]

3. They really thought poor people don't buy in bulk?????

Hell, when I was working in a grocery store as a teen, on the 1st and 15th (the days foodstamps were received at the time), our biggest sellers were 100 lb. bags of pinto beans and rice, along with huge family size packages of chicken, hamburger, etc.

Poor people try harder than most to get the most they can for the least money.

[elocs]

6. I know, I read about it here 6 hours ago:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x6874481

[mdmc]

10. --

[Forkboy]

11. Do they sell candy?