Thursday, January 21, 2016
HIGH SNAP NUMBERS REVEAL ECONOMY’S WEAKNESS
Despite the recent decline in SNAP participation, a recent research report from Credit Suisse analysts said that food stamps issued as a percent of total food purchased in the US skyrocketed to over 12% from less than 6% after the financial crisis. And while that number has dipped slightly to around 10% in 2015, it is still above pre-crisis levels. Record SNAP participation shows just how stressed the core consumer really is, the analysts noted. On the retail side, the fact that lower income consumers have not kept pace with the economic recovery has hurt processed food brands and businesses. "Business can't be good for brands like Chef Boyardee when its core consumers is under-employed and dramatically changing their shopping behavior," write the analysts. Their core consumers are shopping less often and reducing the amount they buy each trip.
Source: Business Insider, 1/6/16, SNAP & the Economy