Costco (COST) Takes Food Stamps

Costco (NASDAQ:COST) is supposed to be the big-box retailer that caters to affluent shoppers and business. The recession may have got the better of the company. It will start taking Food Stamps.

A number of chains and stores that draw a large part of their customers from among the poor and lower middle classes have taken Food Stamps for years. It is a good and profitable business. Taking Food Stamps is a service of sorts to many customers. Whether the stores make extra money because shoppers buy anything beyond food is a matter of conjecture.

Costco may simply have been hit with a fit of compassion that caused it to change its Food Stamps policy. It has a number of regular customers on the financial ropes like any other large consumer-based business in America. Or, Costco may simply be looking that the math. The holidays are coming and with that the peak retail period. Costco could figure that shoppers who come through its doors to buy food will add another few items to their shopping baskets.

There is a good chance Costco will miscalculate if it motive is heavy sales beyond the food that the stamps will buy. People using Food Stamps are not likely to buy office furniture, consumer electronics, or PCs. Being a good corporate citizen is all Costco is likely to get out of accepting food stamps. That should be enough. It is the holidays. People are broke. And, they may remember that Costco gave them a hand when it counted.

Douglas A. McIntyre