Newscasts - US grocers brace for sales dip as food aid set to lapse

Smithfield Foods

31/10/2025 16:27

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Source: 'Reuters - Business videos'

Description: U.S. grocers and food companies ranging from Walmart to Smithfield Foods are bracing for a dip in November sales if federal food aid benefits lapse for the first time due to the ongoing government shutdown. Lisa Bernhard has more.

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Video Transcript:

A looming lapse in federal food aid could hit US grocery sales hard this November as the government shutdown threatens to suspend SNAP benefits, commonly known as food stamps for nearly 42 million Americans. Congress and the USDA have yet to act, and if benefits aren't funded beyond Saturday, grocers could lose up to $8 billion in revenue next month. Walmart, the largest SNAP retailer, could see a dip in fourth quarter sales along with chains like Dollar General and Dollar Tree. About 75% of all SNAP benefits are spent at supermarkets and superstores.

Without SNAP, it's going to be hard to find food that's able to feed us, like in my family.

Trade groups warn of unsold perishables, reduced worker hours, and instability across the food supply chain. Packaged food giants like Kraft Heinz and General Mills could also take a hit with some already adjusting their exposure to SNAP to brace for volatility. Nearly 276,000 retailers are authorized to accept SNAP, and they collect $96 billion each year in benefits, according to USDA data.