Summary
The U.S. government shutdown could lead to the suspension of Supplemental Nutrition Assistance Program (SNAP) benefits, which may impact Walmart's sales significantly since the company gets about a quarter of SNAP spending. The USDA has announced that SNAP funding will run out on November 1, potentially affecting millions of Americans relying on the program for food assistance.
Key Facts
- The government shutdown began on October 1 and is related to expiring healthcare subsidies.
- SNAP benefits are set to be suspended on November 1, affecting more than 40 million Americans.
- Walmart gets approximately 24% of its grocery sales from SNAP shoppers.
- If SNAP benefits stop in November, Walmart could lose about $2 billion in sales.
- SNAP contributes 8% to overall grocery spending, and even a short disruption could lead to economic challenges, such as layoffs in the retail sector.
- Other major retailers affected include Kroger (8%), Costco (6%), and Amazon (5%).
- The National Grocers Association has urged Congress to find a funding solution to end the shutdown and restore SNAP benefits.
