Costco to accept food stamps
Filed under: Economy, Wal-Mart Stores, Costco Wholesale Corp.
Call it a sign of the times -- or at least a sign of the lingering effects of the recession and ongoing unemployment. According to several media sources, Costco (COST), the big box discount retailer, will begin taking food stamps at some locations.
Nearly 36 million Americans use food stamps, but the Costco decision is odd. While Wal-Mart (WMT), which does accept food stamps, is considered a shopping center for relatively low-income consumers, Costco has maintained an image of catering to the fairly affluent. The number of high-end shoppers must have fallen enough that Costco wants to bring in a new category of customers.
The Costco action, taken ahead of the holidays, is another example of the pressure in the retail industry as it enters its busiest season. For many stores, the last two months of the year can pull in 40 percent of annual sales. Costco cannot afford to forgo any reasonable plan to bring in more customers.
Costco is also watching Wal-Mart's remarkable aggressive price-cutting on everything from toys to e-books. That is likely to pull a lot of customers away from other big box retailers, including Costco. Suddenly, taking food stamps has become a marketing tool.
Douglas A. McIntyre is an editor at 24/7 Wall St.
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Reader Comments (Page 1 of 4)
10-29-2009 @ 3:51PM
onic7 said...
Ya know, I just hate to spend money to spend money. Costco should look at their membership fees. Or, Maybe Walmart needs to charge a membership fee.
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10-29-2009 @ 7:33PM
art said...
Walmart does have a membership fee SAMS CLUB
10-29-2009 @ 3:53PM
rascal said...
I don't know where this author gets his information, "high end" customers don't need to wait on Costco lines. I have many friends who would be considered low income, but who share memberships and have been shopping at Costco for some time. By sharing, I mean one person signs up, two share the cost, and both go shopping together. So far as "will begin taking food stamps," our local warehouse has already begun to take them. It's a shame that there are people who get most of their info from AOL bloggers and tweeters.
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10-29-2009 @ 3:54PM
GP said...
How can people on welfare afford the membership to costco...We are really a mess....We need Reagan
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10-29-2009 @ 3:59PM
desertlady said...
Realy, I know their fees have gotten high last year I paid $50 for 1 yr. and can't aford their fees this year, and we are seniors on soc. sec.
10-29-2009 @ 4:03PM
rascal said...
Nobody said anything about welfare. Low income might include people working very hard and long hours to make ends meet. Not everyone makes a huge income. As an example: my nephew is college educated, worked for years as a "head hunter" and since there aren't any jobs, his company shut down. So, he is doing what he has to do to support two kids. Since there aren't any jobs in his field, for now, he is scooping ice cream in the mall. The membership fee is more that covered by the money he saves. Come on people, be a little understanding.
10-29-2009 @ 6:53PM
barbie said...
How can people on welfare afford the membership? We paid $30 for our membership and we have saved hundreds on food, clothing and household cleaning supplies. People on welfare aren't barefoot and living in cars. We are battling cancer, unemployed and still having to take care of our families. We are your next door neighbor. We actually look like human beings too.
10-29-2009 @ 7:31PM
BILL said...
Well stated, GP! I wonder also. Good grief! The bottom line: there's something awfully fishy about a place that charges its patrons to purchase its goods....then accepts food stamps! Is anyone willing (or able) to explain this with some sort of acceptable rationale?
10-29-2009 @ 3:55PM
desertlady said...
Wish I could get food stamps but I guess they think that we get so much social security and being old and sick doesn't qualify. In Calif. it just is for welfare and the illegals.
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11-02-2009 @ 7:45PM
LuvBrandywine said...
Well, I'm not going to shop there anymore! The patrons at Costco has been declining enough now Food Stamps? Do I really want to stand in a long line and listen to more illegals blabbing away in Spanish while there infants scream there heads off and their toddlers run all over with no supervision? I don't think so, I can get enough of that at Target!
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10-29-2009 @ 5:10PM
MustReply said...
That makes one less ignorant racist...glad I won't run into you there. Not everyone getting food stamps is illegal, hispanic, or even receiving public assistance. I have purchased membership to both Costco and Sams club.
I have since lost my job, I am on unemployment, and grateful to be receiving some "foodstamps". Should I stop using my memberships so I don't bother you and the other racist ignorants? Wish it was you looking for a job...remember what goes around comes around...to all of you...you just might have to eat your words one day...keep it ion mind...
10-29-2009 @ 5:04PM
alex said...
so where are u going to shop now...any stores left that take no food stamps or spanish is spoken
10-29-2009 @ 6:30PM
SecretIlluminatist said...
I completely agree with you. Target is a mess and Costco was one of the only places at which you could return to a pleasing shopping expereience. Having these types of people in the store is going to be ridiculous. Why Costco? Why?!
10-29-2009 @ 6:58PM
Ellen said...
Are you aware that anyone giving their time and energy working for a not-for-profit organization like, for instance, AmeriCorps, gets food stamps? The salary is so low and the living quarters are so awful that the only way these young people, who are doing what others think is beneath them can eat decent meals that do not inlcude fast food is to use food stamps. Perhaps a glance outside of your own tiny vision of the world would be a good thing. I grew up in a racist world, but I am making certain my children are smarter than that. And you?
10-29-2009 @ 4:00PM
Robert said...
You have to have a membership to shop there, which costs about $50.00 a year. If they can afford that, them they shouldnt be getting food stamps in the first place. Is there no where I can go in this country where I dont have to see four kids hanging on a basket with their pregnant mom talking on her cellphone?
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10-29-2009 @ 5:59PM
Ken said...
To complain about the membership fee's, tell me you don't shop there.
10-29-2009 @ 4:21PM
Pinky said...
Oh come off it people. Just because you are on food stamps does not mean that you are illegal or on welfare or are spanish speaking. There are plenty of white people that accept aid and that is what it is there for to help you. Unfortunately there are those that take advantage, but do not give those who are in a predicament feel bad for accepting the help.
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10-29-2009 @ 4:19PM
schuler said...
They just lost my memberdhip after several years.They won't honor coupons,but honor food stamps of people who show up in taxi cabs,or luxury cars.Don't tell me they don't because I've seen it many times.Here come the illegals who have more in their shopping carts then most customers,because it's FREE.
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10-29-2009 @ 4:20PM
Richard said...
My family and I receive food stamps because there are no jobs here. We can afford the membership because of our tax refund. And we are not illegals. We are red blooded Americans just like you.
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10-29-2009 @ 4:35PM
Oldie said...
What does your tax refund have to do with the membership fee?