Bill Simon, CEO of Wal-Mart's U.S. business on conference call to Goldman Sachs.
"you need not go further than one of our stores on midnight at the end of the month. And it’s real interesting to watch, about 11 p.m., customers start to come in and shop, fill their grocery basket with basic items, baby formula, milk, bread, eggs,and continue to shop and mill about the store until midnight, when electronic — government electronic benefits cards get activated and then the checkout starts and occurs. And our sales for those first few hours on the first of the month are substantially and significantly higher.
“And if you really think about it, the only reason somebody gets out in the middle of the night and buys baby formula is that they need it, and they’ve been waiting for it. Otherwise, we are open 24 hours — come at 5 a.m., come at 7 a.m., come at 10 a.m. But if you are there at midnight, you are there for a reason.”
I understand the premise you are addressing from this 2010 article. A few words though on items like baby formula, eggs, milk...the same folks with SNAP and babies, also have WIC, which is weekly.
WIC allows no 'programs' like coupons or store 'favored customer' awards.
I work part-time at a Walgreens. I'm often shocked by people coming in with SNAP or WIC and what they buy, for what costs. Different challenges with each, regarding getting the most for the money.
The store I'm at is flexible regarding WIC. There are no coupons or rewards allowed. No taxes. Any 'customer coupons' related to transaction must be discarded, by law. No receipt is given to the holder of WIC check, thus no returns for cash.
A typical WIC check states something like:
1 doz eggs $1.99
Formula $18.99
2 bottles of juice, 96 oz ea $4.99
3 cereals 18 oz ea $8.99
Check amount not to exceed: $XXX.XX
so on and so forth.
When the oz of cereal exceed 18oz for example, not a problem. Same with the rest of it. No, other types of food may not be substituted, that doesn't happen. However if to fill all the items: eggs, formula, juice, cereals, the total amount exceeds the maximum amount, the prices are 'adjusted' to fit the amount. Thus, the person with that check, gets what they 'need' even though costs to store exceed what's paid.
Where this store is located is not a walking store and there's no public transportation. However, this program and the way the store, (I'm assuming directed by corporate or region), adjusts costs, gives no incentives to the users to buy the best or most economical items.
SNAP on the other hand, does give the users incentives to be savvy shoppers. I've no doubt that millions are. Working where I do, just not seeing many of those. Yes, many DO use the rewards program with their SNAP purchases, many do not-they 'don't want a record of what they are buying.' Most of those 'not using card' are buying 'wholesome food, but without the card and sale prices.' I don't get that. As I said, nearly all have access to a car and can get better prices for good food at grocery, yet they come to convenience center, without taking advantage of sales available.
This past week, a doz eggs were .99 with rewards. Milk 1.99. Oscar Meyer ham, turkey, or chicken 2 12oz packages @ $5. (Less than $5 lb.) Bread: Whole Wheat or White at .99. Who wouldn't use the 'card?' if paying for themselves? Without 'the card': eggs@$1.99; milk $2.89; lunch meats@4.99 ea; bread@$2.99
Many of those using SNAP at our store are buying predominately or only 'empty calories.' Using the card they are purchasing premium candies, chips, pops, and waters. If I only had $200 per month I wouldn't be spending $2. on 'Smart Water'. We live in an area with primo tap water from Lake Michigan. We pay plenty for that through out taxes or rents.
I'm not an advocate in general for 'aid in kind' meaning that the 'poor' or those on aid should be given rations of food deemed 'good for them.' I do believe the best way to make people responsible is to let them suffer the natural consequences of their choices. Here's the rub. It's common knowledge that SNAP only pays for food. My store has computers that ensure that is the case. No diapers or paper towels or bandaids get covered.
So, American Express, Visa, Mastercard or Discover cover those items.
Does it strike anyone else a bit odd that someone with a credit card is on a food program? I'm not sure if the problem is with the government or the banks, but something seems weird to me here.
At the present time I can't see any reason for anyone in the US to be 'hungry.' Yet, the well is not without end, that should be obvious to all. Both recipients and those paying for.
A couple years back, I needed and qualified for SNAP. 1 adult in IL. It was during summer and without subbing my income fell to the point that couldn't pay utilities and eat. For 3 months I had SNAP at $200 per month. For the first two months I ate fine and had 'credits' carried forward. I utilized my online coupons, and rewards cards. I cooked and used meals from one to another, making soups, salads, etc., from the left overs.
That September, after a summer of friends and family having me over many times for bar-b-ques and lake parties, I hosted a Labor Day Party. All of the meats, breads, and salads were covered by SNAP, coupons and rewards programs. While I always bought the very lowest price for myself, I paid 'sale price' for premium brands that holiday weekend. Yes, there were strip steaks, (discount for large weight), well marinated. Chicken, again bought in bulk, cut up and ready-to-grill. Brats, Italian Sausage, etc., bought on ale. It took only a bit of planning for coupons, knowledge of sales from grocery, and obviously a knack for the previous two months of utilizing the savings available from a myriad of resources. In my case: buying at Aldi's for staples and veggies I could use without spoilage. Shopping with my rewards card at grocer for the smaller quantity perishables at best prices. In all venues looking for 'Clearance' items about to hit 'sell by date.'
For two months I ate well and used less than $130 of the $200 allotted. In September for 1 weekend I used a bit more than $150 for one weekend. $10 more than what I'd 'saved' the previous 2 months.
Truth is, the allotments on SNAP are very stingy for singles. IF I'd applied when my 3 kids were at home, I'd have had little issue with getting by. No, they wouldn't have unlimited junk food, but certainly their share of chips, nuts, pop, etc.