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Home » Cutback in Government Food Stamp Program to Affect Food Retailers

Cutback in Government Food Stamp Program to Affect Food Retailers

November 6, 2013
Los Angeles Times

Grocery stores and other food retailers have struggled in recent years as consumers battered by high unemployment and shrinking wages switched from upscale products to discounted bulk goods and generic brands.

Food sales, especially at discounters such as Wal-Mart Stores Inc., could be further crimped by the $5bn, or roughly 6-percent, annual cut in food stamps that took effect Friday.

It "is going to hit those outlets that cater to lower-income consumers "” Wal-Mart, dollar stores, grocers also," said Andrew P. Wolf, an analyst at BB&T Capital Markets. "If you look at it from a macroeconomic point of view, it's less fiscal stimulus."

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KEYWORDS Business Strategy Alignment consumer packaged goods dollar stores Food and Beverage food stamps Global Supply Chain Management government subsidies Industrial Manufacturing logistics & supply chain Los Angeles Times Regulation & Compliance Retail retail supply chain Supply Chain Analysis & Consulting Supply Chain Management Supply Chain Management: Retail
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