New York City Grocery Stores Feel the Pinch as SNAP Cuts Loom
In low-income neighborhoods, grocery stores are bracing for the impact of impending cuts to the Supplemental Nutrition Assistance Program (SNAP), which could devastate businesses that rely heavily on food stamp sales.
For Pioneer Supermarket in Mott Haven, manager Marisol Veras says that when shoppers lose their SNAP benefits at the end of each month, sales plummet by 30%. The store's customers pay with SNAP benefits for nearly all their purchases, with 85 out of every 100 customers relying on the program. This loss of revenue could force the store to lay off staff or reduce its offerings.
SNAP recipients are already facing challenges due to a shutdown-induced disruption in monthly payments starting November 1. Additionally, the Trump administration's tax and spending measure expands work rules for SNAP beneficiaries, who will lose benefits next year if they can't prove they're employed. This policy change is expected to have a compounding effect on low-income neighborhoods, where shoppers may struggle to afford food due to rising prices and limited access to healthy options.
Grocers in high-poverty areas are particularly vulnerable to these changes, as they operate on razor-thin profits and rely on volume sales to stay afloat. Food retailers in such areas will likely feel the pinch soon after November 1, with some stores potentially forced to shut down due to reduced revenue.
The National Grocers Association estimates that SNAP purchases inject nearly $100 billion into the national economy each year. A 9% reduction in benefits would cost the U.S. government about $10 billion annually and result in a loss of approximately $360 million for New Yorkers and their grocery stores.
Experts warn that these cuts will have a devastating impact on low-income communities, creating food deserts and limiting access to healthy food options. Without a more permanent solution, store closures could lead to fewer options and reduced access for residents.
As the implementation of these changes looms, business owners like Sergio Hector at Mr. N Seafood Market in the Bronx fear that their stores may be forced to shut down due to declining sales. Rising fish prices and limited revenue due to SNAP cuts will make it challenging for them to maintain operations.
Gina Plata-Nino, the interim director of SNAP at the Food Research & Action Center, notes that federal food benefits not only help individuals but also bolster the food retailers operating in under-resourced communities. By restricting these benefits based on employment status, policymakers may inadvertently shrink the job market and reduce staffing levels among small businesses.
As the situation unfolds, grocery stores will be closely watching the impact of these policy changes on their operations and customers.
In low-income neighborhoods, grocery stores are bracing for the impact of impending cuts to the Supplemental Nutrition Assistance Program (SNAP), which could devastate businesses that rely heavily on food stamp sales.
For Pioneer Supermarket in Mott Haven, manager Marisol Veras says that when shoppers lose their SNAP benefits at the end of each month, sales plummet by 30%. The store's customers pay with SNAP benefits for nearly all their purchases, with 85 out of every 100 customers relying on the program. This loss of revenue could force the store to lay off staff or reduce its offerings.
SNAP recipients are already facing challenges due to a shutdown-induced disruption in monthly payments starting November 1. Additionally, the Trump administration's tax and spending measure expands work rules for SNAP beneficiaries, who will lose benefits next year if they can't prove they're employed. This policy change is expected to have a compounding effect on low-income neighborhoods, where shoppers may struggle to afford food due to rising prices and limited access to healthy options.
Grocers in high-poverty areas are particularly vulnerable to these changes, as they operate on razor-thin profits and rely on volume sales to stay afloat. Food retailers in such areas will likely feel the pinch soon after November 1, with some stores potentially forced to shut down due to reduced revenue.
The National Grocers Association estimates that SNAP purchases inject nearly $100 billion into the national economy each year. A 9% reduction in benefits would cost the U.S. government about $10 billion annually and result in a loss of approximately $360 million for New Yorkers and their grocery stores.
Experts warn that these cuts will have a devastating impact on low-income communities, creating food deserts and limiting access to healthy food options. Without a more permanent solution, store closures could lead to fewer options and reduced access for residents.
As the implementation of these changes looms, business owners like Sergio Hector at Mr. N Seafood Market in the Bronx fear that their stores may be forced to shut down due to declining sales. Rising fish prices and limited revenue due to SNAP cuts will make it challenging for them to maintain operations.
Gina Plata-Nino, the interim director of SNAP at the Food Research & Action Center, notes that federal food benefits not only help individuals but also bolster the food retailers operating in under-resourced communities. By restricting these benefits based on employment status, policymakers may inadvertently shrink the job market and reduce staffing levels among small businesses.
As the situation unfolds, grocery stores will be closely watching the impact of these policy changes on their operations and customers.