Summary
Small grocery stores are facing financial challenges as potential cuts to SNAP (food assistance program) might lead to fewer sales. Some customers are spending less and seeking cheaper options elsewhere. SNAP purchases greatly impact these local stores' revenue.
Key Facts
- Many small grocery stores rely on the Supplemental Nutrition Assistance Program (SNAP) for a large part of their sales.
- The Save A Lot store in Springfield, Massachusetts, gets 65% of its sales from SNAP benefits.
- A potential government shutdown might cut off SNAP benefits starting November 1, 2025.
- Shop manager Jose Pajares reports fewer customers and reduced sales at Save A Lot.
- Customers like Theresa Rios are buying fewer items and seeking cheaper alternatives due to SNAP cuts.
- There are 250,000 retailers in the U.S. authorized to accept SNAP benefits.
- The manager has reduced inventory and lowered prices to address reduced demand.