Food stamps bring income to retailers and feed US consumers

Recession makes American people use very opportunity to stay afloat and scrape by. More and more US consumers are turning to government aid to pay for groceries while retailers in their turn are also increasingly accepting food stamps. In April 2009 about 39 million people received food stamps known as Electronic Benefit Transfers. This figure is 20% up from the ratings registered in April 2008. Costco stores, 7-Eleven to Target, Family dollar and BJ's Wholesale Club are among those who accept EBTs.

To accept the debit-card-like EBT cards, stores must meet at least one of the following conditions:

•They regularly sell at least three varieties of foods in each of four categories — breads/cereals; dairy products; fruits and vegetables; and meat, fish or poultry — and at least two of the categories must include perishable foods.

•Or more than half of total gross sales must be in "staple foods," which means no candy, soft drinks or prepared foods. 

In its report that contains results for the third quarter Family Dollar said that among other things that contributed to its success in the tough environment was EBT. Food stamps represent "a significant opportunity for us," said CEO Howard Levine. EBT spending at Family Dollar (FDO) was up 18% from March 2008 to March 2009, says spokesman Josh Braverman.

In June Target extended acceptance of EBT benefits from its Super Target and other stores with expanded food selections to all 1,700 stores. Costco this month started testing its checkout technology at six New York City locations to prepare for EBT acceptance. Joe Portera, executive vice president and COO of Costco's Eastern and Canadian divisions, says Costco members began asking to use EBT cards in the last six months.

Source: USA Today