A sign of the times - Costco to take Food Stamps

[hotcouponmama]

Since this is grocery related, I'm landing this thread here so people who need to see it will see it, although I'm sure there will be some commentary on it too.

But I think with nearly 12% of the country on foodstamps, Costco is hedging its bet on a new customer base, and considering it's likely that with 10M people having gone on foodstamps since 2008, that many people already had a membership, it's pretty savvy of them.

One of the things I disagree with is that buying in bulk from a warehouse club is any kind of deal for people paying in cash or foodstamps. However, there are some things that make sense from a warehouse - dairy and eggs being a good choice if you can't get a deal on them at a grocery store.

If the small local butcher shops and the Dollar Stores in my area have dialed into this, I'm actually kind of amazed that it took Costco this long to snap to it.

Interestingly, a rep from their company said something to the effect of Costco having to readjust their thinking, and basically, be a bit more humble in rethinking what "poor" means. After years of being the shopping haven for the affluent, this could be a pretty big switch for them. Will watch and see....

[latte]

I saw something on this the other day.........I personally have been on foodstamps (after going to the plasma center for grocery money cause my paycheck paid all my bills) BUT how many people recieving foodstamps are going to be able to come up with the 50$ or so for the yearly membership prilage of shopping there? Just because they accept foodstamps, doesnt mean that the recipiants are going to have the CASH to pay for a membership



How is the membership fee going to be paid for by someone who doesnt have the CASH to do it? It's not like they are going to take foodstamps to pay for the membership fee

[latte]

And, another thought.........MANY families who recieve food stamps, also ride the bus in my area......who is going to lug a bunch of BULK stuff from Costco on the bus??? I don't drive personally, but if I were to go to Costco, I KNOW that I would need a ride home with the *groceries* ........and I have been inside of Costco recently.......the ONLY things I found that were a GOOD price (not even taking coupons into consideration) were milk and eggs----I personally can get meats for less at my Albertsons, or Fred Meyer, or Safeway on markdown for an 1/8 of the cost that meats were priced at Costco.


I looked at thier produce as well, and for what you get its a decent price, BUT my family wouldnt be able to eat all of it before it went bad, and then I would be tossing out produce that didnt get eaten.

[justmeagain]

I remember the days when I thought buying bulk was the way to go so I can see the logic in this. It really took me a bit to adjust my thinking that smaller sizes actually are better. However like latte says.........the membership fee....that will be the issue. We don't have a costco here but we do have sams club. I'm no longer a member of course because with couponing I can get things so much cheaper. We do qualify for foodstamps but I won't apply for them because with couponing I have MORE than enough food.

[hotcouponmama]

I think the assumption Costco is making is that lots of the "newly foodstamped" customers will already have a membership, and they are seeing a spike in people who are signing up because of their decision to take foodstamps.

True, to Latte's point - there are many who use foodstamps who don't have a car, but many more do. 36 million Americans is a lot of people and they won't all fit the "foodstamp" stereotype.

We have a costco membership. The things I buy their regularly:

* Satsumas/mandarin oranges
* Trash bags
* Salmon burger patties
* Cup of Noodles
* Cheesesticks
* Peanut Butter pretzel nuggets
* Some individually wrapped things for lunches (chips, etc)
* Contact lens solution
* Gift Certs - (Local restaurants that have $100 for $80)
* Shrimp Wonton soups and a few other specialty things you can't get at the grocery store
* Chicken nuggets
* pre-made meatballs

And some other odds and ends.

But overall, not the best deal on most grocery items. Not if you're a good couponer.

[justmeagain]

Having a car is basically a way of life in some areas like here.....to get anywhere you have to drive.

[hotcouponmama]

Having a car is basically a way of life in some areas like here.....to get anywhere you have to drive.

Yep - I'd have to walk over 2 miles just to get to a bus stop here. And then past that, I have to drive about 5 miles just to get to a decent store to shop at.

[justmeagain]

We only have one box store here......rite aid. Oh I take that back, we JUST got a pamida. But our big grocery stores (Meijers, super walmart, target, staples, petsmart, toysrus etc etc) are about a 40-45minute drive............including Sams club:giggle2:

[aurorahorse]

It will be interesting to see if that changes anything.

I don't buy as much food there as I used to, but their meats are better and good prices. I also get the milk/cheese/eggs (unless on sale). The meds alone are what makes it worth it...my contacts and OTC meds are TONS cheaper there. :) Okay, and the tires...and their return policy....I LOVE Costco. :)

[queenofthehivemomof5]

I heard that BJ's accepts foodstamps as well. I think it is good idea. Provided that you can pay for the membership or already have one there are a few things that can be a good deal at a warehouse store. We don't have a warehouse club anywhere near us but we got a membership for Sams Club for and get a few things when we are in a city with one. We got some good deals for food things we needed for our camping trip to Yellowstone this summer and since then we have been back 2 times and I got some produce, milk and meat. With a large family the quantities were fine for us.

[mnnice]

I saw something on this the other day.........I personally have been on foodstamps (after going to the plasma center for grocery money cause my paycheck paid all my bills) BUT how many people recieving foodstamps are going to be able to come up with the 50$ or so for the yearly membership prilage of shopping there? Just because they accept foodstamps, doesnt mean that the recipiants are going to have the CASH to pay for a membership



How is the membership fee going to be paid for by someone who doesnt have the CASH to do it? It's not like they are going to take foodstamps to pay for the membership fee

I think if Costco is a good deal for your family it's a good deal regardless of your income and many, many people with limited incomes would figure out the $50 if they knew it was going to save you way more than $50 on things you knew you needed anyway (fuel, tires, eyeglasses, disposible diapers). Saving on groceries would just be gravy so to speak. I also think that lots of relatives of low income people would buy a membership as a gift, because it would be a gift that could save a low income family money all year.


I think the assumption Costco is making is that lots of the "newly foodstamped" customers will already have a membership, and they are seeing a spike in people who are signing up because of their decision to take foodstamps.

True, to Latte's point - there are many who use foodstamps who don't have a car, but many more do. 36 million Americans is a lot of people and they won't all fit the "foodstamp" stereotype.


I think lots of the "newly foodstamped" are more likely to have a car or access to a car and often have more resources than long term receipents. If DH doesn't find employment before his EI runs out my family would be eligible. We would not be broke though and would still have funds in savings.

[Kristen.C]

I think it's a good idea. If you have a car and drive regularly, the savings on gasoline alone is enough to cover the membership fee. Like other members brought up, in many areas having a car is an absolute must as there isn't a good public transit system to rely on.

[CW&M Mom]

We had foodstamps and 2 cars. DH was laid off from his job and so we qualified for food stamps (one car (minivan) is not fully paid for the other car is.)

We haven't had a costco near us for a while but we still keep our membership to Sam's Club...which is similar priced. (not currently on food stamps...but actually we will probably be going back on them).

What I get there.

Baby wipes (generic)
Generic Zyrtec
Generic Zantac
Generic Pepcid
Generic Ibuprofin

Gas

And if needed...and no other good deals.
Milk
Eggs
Cheese
Hamburger
Chicken Breasts
Banana's
Bags o salad
Fuji Apples
Broccoli
Carrots

When DH was laid off and we had no insurance for DH or I...Sam's Club was a godsend.

[mcscheatzle]

I think Costco's growth will surely spike. A common thing here is for people with lower incomes to "share" the membership. They pool the funds and goods and distribute them among "family". So coming up with 50 bucks for a membership is already a no brainer.

[biscottilover]

I think in Costco circles, it was like a standard that Costco held itself to --- Ooh, the recession has hit so hard that Sam's Club has resorted to accepting food stamps to gain business, but we're still #1 in the warehouse market, so we don't have to do that --- So much for that theory.

I don't think this will draw a huge amount of the population into the store, but I think it allows for current (and new) customers to spend more money (and in this case, food stamps) in the store. And I think Costco has finally realized that whatever gives the customer more leeway to spend ultimately is good for the warehouse. Duh.

As for it being worth your while to shop there as a person/family on foodstamps, I have my doubts. You'd have to be super strict, and very disciplined. There's just so much temptation, and the culture is to go in wanting milk and eggs, and come out with hummus, chips, and a flat screen tv. And it doesn't matter whether you're rich or poor, it's the treasure hunting that gets ya. It's just that the rich have more freedom to "treasure-hunt" in Costco.

So, #1, you'd have to be disciplined. #2, you'd have to take advantage of opportunities --- i.e. samples. My aunt once said that if she just took her family to Costco to eat samples every weekend, she could pay for her membership in full within a couple months. I mean, you'd have to have no shame to do it all the time, but you could. #3, you'd have to price-shop Costco, just like any other store. And #4, you'd have to spread those large purchases out over the months. I mean, if you eat all those $15 cashews in under a week, it's not really a bargain, is it? Hehe.

[Liz]

But overall, not the best deal on most grocery items. Not if you're a good couponer.I always find the "Costco's not too great for a couponer" sentiment around here quite funny. If I want quality meat and produce, it is a heck of a lot cheaper than to shop at Whole Foods or Safeway. I don't have winetags or coupons for meat, fruits and vegetables, nor do I have the time to trade for them and am not paying the prices to buy them from people as it is pretty much a wash. Costco's ever-expansive list of organics, gourmet cheeses, free range meats that make up the vast majority of my diet are at fabulous prices. If I ever switch to a diet based around items I get coupons for in my Sunday paper or those found in the local grocery stores, I guess I'll finally be a "good couponer." But then, I'd also be a fatter couponer with frizzy hair, blemished skin, substandard make-up and obscenely high cholesterol.It will be interesting to see if that changes anything.I hope it doesn't. I don't shop at Walmart for a reason.

[aimeebee]

Yep - I'd have to walk over 2 miles just to get to a bus stop here. And then past that, I have to drive about 5 miles just to get to a decent store to shop at.


LOL, I'd have to walk about 15 - 17 miles to get to a bus stop.

I really don't think people on food stamps should be any kind of target market for Costco. If they do already have memberships, it will probably be one of the first things that get cut and not renewed. So, we're only talking about a few months. People on this site probably know that most things can be bought cheaper in small sizes on sale with coupon than in bulk. For a non-couponer, I would hope their first instict would be someplace like Aldi's or Sav-a-lot instead of Costco/Sam's. I don't think you could feed a family on a food stamp budget at the warehouse stores. Those big boxes equal big bucks in one swoop. I suspect a lot of people would run out of food stamps and still have a whole lot of month left to go hungry if this was where they did the 'bulk' of their shopping.

[CW&M Mom]

LOL, I'd have to walk about 15 - 17 miles to get to a bus stop.

I really don't think people on food stamps should be any kind of target market for Costco. If they do already have memberships, it will probably be one of the first things that get cut and not renewed. So, we're only talking about a few months. People on this site probably know that most things can be bought cheaper in small sizes on sale with coupon than in bulk. For a non-couponer, I would hope their first instict would be someplace like Aldi's or Sav-a-lot instead of Costco/Sam's. I don't think you could feed a family on a food stamp budget at the warehouse stores. Those big boxes equal big bucks in one swoop. I suspect a lot of people would run out of food stamps and still have a whole lot of month left to go hungry if this was where they did the 'bulk' of their shopping.
I agree that getting the bulk of your food with foodstamps at costco isn't going to probably work out well. You would have to be very careful in what you select....as I stated earlier....when we had no insurance and on food stamps...we kept our Sam's Club membership for GAS, the price of OTC drugs, and generic diaper wipes. When you don't have insurance like we did....Sam's Club saved our butts in prescription prices...because I could find something similar soooooo much cheaper than I ever could with a coupon. Just my Daughters Generic Zyrtec is $18.00 for more than a year supply OTC. I won't beat that with a coupon, RR and ECB's either. Not everyplace even has Aldi's or Save a lot...and although I did use FS there...I rarely could get everything I needed there...because they had such a limited amount of things there.

Basically I'm saying that you may find that people on FS also needed Health care products and OTC products and they may keep the card for that reason regardless of whether they get much food there or not. And for those on TANF....they would be able to use there card there as well to get things...and on another thread...a gal mentioned in there state those on SSI and SS get the same card...so that will open a door for them to get things at Costco as well. Not to mention...you get people using FS in Costco...even if it's just milk....they may get there scripts there....via medicaid.

Sometimes it's very hard to resist putting people on FS into a certain box that we assume they must be like.

[loaslaen]

I was just reading about the warehouse clubs to see if Costco had the day passes like Sam's and BJ's, but apparently they don't. That would be a great option for those wanting to see what the clubs were like before deciding if they want to pay the price to join.

I also read that BJ's is the only one that accepts manufacturer coupons. And that you can use multiple coupons for multi-packs, for as many that are in the pack. That could be a very good deal for a couponer. You can also print out a one-day pass to BJ's online at their website. It says a 15% non-member surcharge will be added. I wonder if that charge is added to the Food Stamp total, or if it's an OOP charge? If you join within 7 days of using the pass, the 15% surcharge will be applied toward the membership fee if you show your original receipt at customer service. If that surcharge was paid by FS, then that would be a good way to lower OOP for membership fees.

BJ's also offers a "reward membership" for an additional $35 that gives 2% back on your purchases. If someone on FS is spending $335/mth for one year there, then they can make back the membership and reward membership fees with that 2%. (Just throwing out some figures)

Oh...one more thing I just remembered...some people on food stamps also receive TANF, which is cash benefits. Those cash benefits can pay the cost of membership, so not everyone on FS is having to pay OOP.

Many people may also have already had a membership before they hit hard times since the membership lasts a year, and anything can happen in a year. Some people may also have access to warehouse clubs through the employers they work for. Also family members, friends, etc.

[wealthybarney]

OP-Great Tread, thank you for bringing this up, because I wasn't aware.
This is great news for my neighbors!!
I live in a 54 unit apartment, just finding out that the second floor is low income housing, many here on foodstamps.
There are several who just drink milk all day for food-so Costco Milk will really help them.
(Those who do this are too old to grasp couponing.)

Since I can take a guest or 2 with me, they won't need to purchase a card.
We haven't been there for months, but when we are able to renew--it will be worth the cost to help my neighbors.

[mzbeers]

I think it's a really wise decision on Costco's part. It will be really difficult for people to budget their foodstamps. How easy would it be to spend the whole $ amount on just one trip? Every time I go in there it's my goal to spend less than $100.00 Sometimes that's really difficult.