Costco to Start Accepting Food Stamps

Within a few months, Costco will begin accepting food stamps on a trial basis. Food stamps will only be accepting at two stores — Costco’s two locations in New York City. In the meantime, Costco will be installing the technology for accepting the food stamps at the two locations, which are in Brooklyn and Queens.

Costco Food Stamps (Image: Flickr)

According to Costco, they selected the two New York City locations because of a high percentage of food stamp recipients in the area. Depending on this test program, Costco may opt to eventually make food stamp payment available at more of its locations.

Not surprisingly, the global economic downturn also played a role in this move by Costco.

“In the past, we have not been convinced that there was sufficient demand among our membership to justify the expense and possible inefficiencies associated with accepting food stamps,” said Jim Sinegal, the CEO of Costco. “However, we are mindful that many of our fellow citizens are facing unprecedented economic challenges at this time, and it seemed to us that it was worth reconsidering our position in that light. We are taking this step to see if we can be a part of the solution to the financial burden that many people are facing today.”

Costco, which is based in the state of Washington, is a warehouse club chain that reportedly has more than 55 million members. According to numerous reports, there are more than 31 million Americans who receive food stamps.