Retail Repercussions: SNAP Benefits Lapse Threatens Grocery Industry

As the U.S. government shutdown continues, grocers like Walmart and food companies brace for the impact of a lapse in SNAP benefits that could significantly affect November sales. The potential $8 billion revenue drop poses challenges for retailers and suppliers, prompting calls for government action.

As the government shutdown drags on, retailers and food companies in the United States brace for potential financial fallout. The lapse in Supplemental Nutrition Assistance Program (SNAP) benefits, serving nearly 42 million people, threatens a sharp decline in November sales if not addressed soon.

SNAP's suspension poses a possible $8 billion revenue reduction, with grocers and suppliers fearing decreased sales and reduced hours for workers. The National Grocers Association urges Congress to act, warning of severe repercussions for local businesses and the broader food supply chain.

Walmart, the largest SNAP retailer, and others like Dollar General face potential sales dips. Consumers and companies alike await resolution, as policy changes and benefits cuts add uncertainty to the grocery market's landscape.

(With inputs from agencies.)