From wsj.com
Retailers Brace for Reduction in Food Stamps
Expiration of Added Benefits Will Remove $16 Billion in Aid Over Three Years
By SHELLY BANJO and ANNIE GASPARRO
Updated Nov. 4, 2013
Retailers and grocers are bracing for another drain on consumer spending when a temporary boost in food-stamp benefits expires Friday.
The change will leave 48 million Americans with an estimated $11 billion less to spend over the next three years and comes just months after the expiration of a payroll tax cut knocked 2% off consumers' monthly paychecks.
On the business side of the equation, the cuts will fall particularly hard on the grocers, discounters, dollar stores and gas stations that depend heavily on low-income shoppers. Weak spending in that stressed consumer segment has already led retailers including Wal-Mart Stores Inc. and Target Corp.to lower their sales forecasts for the rest of the year ahead of holidays.
"It will certainly have some effect on us and the whole grocery industry," said Jim Hyland, spokesman for Midwestern grocer Roundy's Inc.
Retailers Brace for Reduction in Food Stamps
Expiration of Added Benefits Will Remove $16 Billion in Aid Over Three Years
By SHELLY BANJO and ANNIE GASPARRO
Updated Nov. 4, 2013
Retailers and grocers are bracing for another drain on consumer spending when a temporary boost in food-stamp benefits expires Friday.
The change will leave 48 million Americans with an estimated $11 billion less to spend over the next three years and comes just months after the expiration of a payroll tax cut knocked 2% off consumers' monthly paychecks.
On the business side of the equation, the cuts will fall particularly hard on the grocers, discounters, dollar stores and gas stations that depend heavily on low-income shoppers. Weak spending in that stressed consumer segment has already led retailers including Wal-Mart Stores Inc. and Target Corp.to lower their sales forecasts for the rest of the year ahead of holidays.
"It will certainly have some effect on us and the whole grocery industry," said Jim Hyland, spokesman for Midwestern grocer Roundy's Inc.
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