New York City's Grocery Stores Are Relying on SNAP Sales - Here's What the Proposed Cuts Could Mean for Them.
In New York City, grocery stores are heavily reliant on sales generated by shoppers using the Supplemental Nutrition Assistance Program (SNAP). According to one Pioneer Supermarket manager, 85 out of every 100 customers who walk into her store pay with benefits from SNAP. The program, which is designed to help low-income households purchase food, accounts for a significant portion of grocery sales in neighborhoods where food insecurity is high.
A recent proposal by the Trump administration to stop monthly SNAP payments starting November 1 due to the ongoing government shutdown has already caused anxiety among local grocers and experts. While the immediate disruption may not seem like a major issue, the long-term effects are more concerning. According to policy analysts, an expansion of work requirements for SNAP recipients that goes into effect next year will further reduce access to the program, leading to devastating consequences for grocery stores in low-income neighborhoods.
Grocery sales tend to follow a predictable pattern at stores like Pioneer Supermarket on Willis Avenue. Receipts drop 30% towards the end of each month, coinciding with the expiration of SNAP benefits. Managers and owners of these stores have expressed their concerns about the impending cuts to SNAP, citing reduced business and potential store closures as major risks.
SNAP recipients make up more than half of sales in some grocery stores in high-poverty areas, such as Mott Haven in the Bronx. These stores rely heavily on the program to stay afloat due to razor-thin profit margins and a focus on volume sales.
According to a recent study by the USDA, tighter work requirements for SNAP recipients can result in significant declines in participation without leading to increases in employment or earnings. This has raised concerns about the proposed changes having unintended consequences.
The potential reduction of $10 billion annually from federal spending on SNAP under these new rules will likely have a major impact on New York City residents and their grocery stores, with estimated losses totaling around $360 million per year. The decline is equivalent to roughly $6 a day for every recipient in the program.
In response to the cuts, Governor Kathy Hochul has announced an expedited release of $30 million in funding for emergency meals to help alleviate some of the immediate effects on groceries stores and residents.
In addition to these concerns about immediate financial impacts, many grocery store owners fear that reduced access to SNAP benefits will exacerbate public safety issues. Shoplifting is already a common problem in many stores, and managers are worried that limiting food assistance will further increase shoplifting rates.
The situation has brought renewed attention to the importance of programs like SNAP for supporting not just low-income households but also local businesses and the broader community.
In New York City, grocery stores are heavily reliant on sales generated by shoppers using the Supplemental Nutrition Assistance Program (SNAP). According to one Pioneer Supermarket manager, 85 out of every 100 customers who walk into her store pay with benefits from SNAP. The program, which is designed to help low-income households purchase food, accounts for a significant portion of grocery sales in neighborhoods where food insecurity is high.
A recent proposal by the Trump administration to stop monthly SNAP payments starting November 1 due to the ongoing government shutdown has already caused anxiety among local grocers and experts. While the immediate disruption may not seem like a major issue, the long-term effects are more concerning. According to policy analysts, an expansion of work requirements for SNAP recipients that goes into effect next year will further reduce access to the program, leading to devastating consequences for grocery stores in low-income neighborhoods.
Grocery sales tend to follow a predictable pattern at stores like Pioneer Supermarket on Willis Avenue. Receipts drop 30% towards the end of each month, coinciding with the expiration of SNAP benefits. Managers and owners of these stores have expressed their concerns about the impending cuts to SNAP, citing reduced business and potential store closures as major risks.
SNAP recipients make up more than half of sales in some grocery stores in high-poverty areas, such as Mott Haven in the Bronx. These stores rely heavily on the program to stay afloat due to razor-thin profit margins and a focus on volume sales.
According to a recent study by the USDA, tighter work requirements for SNAP recipients can result in significant declines in participation without leading to increases in employment or earnings. This has raised concerns about the proposed changes having unintended consequences.
The potential reduction of $10 billion annually from federal spending on SNAP under these new rules will likely have a major impact on New York City residents and their grocery stores, with estimated losses totaling around $360 million per year. The decline is equivalent to roughly $6 a day for every recipient in the program.
In response to the cuts, Governor Kathy Hochul has announced an expedited release of $30 million in funding for emergency meals to help alleviate some of the immediate effects on groceries stores and residents.
In addition to these concerns about immediate financial impacts, many grocery store owners fear that reduced access to SNAP benefits will exacerbate public safety issues. Shoplifting is already a common problem in many stores, and managers are worried that limiting food assistance will further increase shoplifting rates.
The situation has brought renewed attention to the importance of programs like SNAP for supporting not just low-income households but also local businesses and the broader community.