Costco Wholesale Corp. (NASDAQ: COST) is realizing that many of its customers are still living on hard times these days, even the news that the economy is rebounding. That doesn't mean lost jobs will pop back any time soon, and as such, the wholesale retailer will be accepting food stamps at all of its U.S. locations.Costco indicated earlier this year that the demand would not be strong enough for it to accept food stamps -- but a whirlwind of changes have occurred since then. Costco CEO Jim Sinegal indicated that half of Costco's 410 U.S. locations would be able to accept food stamps by Thanksgiving. Will this amp up sales at the third-largest retailer in the U.S. -- or will it prompt more retailers to start accepting food stamps as well?
But, wholesale retailers generally charge an annual membership fee to allow customers access to those large-scale purchases and savings -- are these the same customers that will line up in droves to purchase food stamps? Perhaps so -- job gains will not be returning at the pace that the U.S. economy may be rising, leaving many to seek bargains and assistance anywhere they can. Costco will be starting in the hardest-hit areas of Michigan and central California and will eventually get to all of its stores by the end of 2009.
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Reader Comments (Page 1 of 1)
11-05-2009 @ 12:29PM
dantheman said...
This bring costco down. All the dirty low lifes will come in in droves.Going to Costco will be like going to walmart. To bad.