NEW YORK—Councilman Eric Gioia (D-Queens), Public Advocate Betsy Gotbaum, and community leaders appealed to Costco on Sunday to allow food stamp payments at their new East Harlem store slated to open in November 2009.
In the letter sent to Costco CEO James Sinegal and Board of Directors, Councilman Gioia and Public Advocate Gotbaum proposed implementation of a six-month pilot program to test acceptance of food stamps at the new East Harlem store. Costco’s primary competitors, BJ’s and Sam’s Club, have already revised their policies and started to accept food stamps at all locations nationwide in response to the challenging economic climate.
“It would be good policy, and good business, for Costco to accept Food Stamps,” stated
Public Advocate Gotbaum. “An increasing number of New Yorkers are receiving and applying for Food Stamps, and Costco could improve its image and expand its customer base by providing a great service to struggling families. I’ve sent a letter to Costco, cosigned by Councilmember Gioia, calling for a pilot program at its new East Harlem location,” she continued.
Approximately 32,000 residents of East Harlem receive food stamp benefits, and may benefit from having access to healthier food alternatives offered at the warehouse store. However, none of the Costco locations, including three other stores in New York City, currently accept food stamps.
Nearly 32 million people participate in the Supplemental Nutrition Assistance Program (SNAP) that allocates food stamps across the United States, including over 1.2 million in New York City. SNAP enrollment in New York City increased by 195,610 between February 2008 and February 2009. New York City residents received over $181 million in food stamp benefits in January 2009 alone, and are expected to receive over $200 million per month with the recent passage of the American Recovery and Reinvestment Act.
“Costco’s current policy is not only bad for New Yorkers, it’s bad for their bottom line,” said Councilman Gioia. “In East Harlem alone, 32,000 additional New Yorkers who use food stamps would benefit from the fresh produce and healthy food that Costco offers. In tough economic times more people than ever will qualify for food stamps and there’s simply no good reason for Costco to continue to refuse them as payment,” he added.
Previous studies reported that fewer healthy foods are available for sale in East and Central Harlem when compared to the Upper East Side. This may contribute to the high obesity and diabetes rates reported for this area. Statistics from the New York City Department of Health show that 46 percent of public elementary school children and 60 percent of adults are obese or overweight in East and Central Harlem. Increase in Type 2 Diabetes incidence among children has also been reported.
“At a time when so many families are struggling to put healthy food on the table, every retailer that’s eligible should accept food stamps,” noted Council Member Melissa Mark Viverito, who represents the East Harlem area. “When access to healthy options is limited, myriad health problems follow—including obesity and diabetes. Food stamps allow New Yorkers to put better food on the table,” she added.
Since New York City pension funds have significant holdings in Costco, Public Advocate Gotbaum and Councilman Gioia also expressed concern that Costco’s current policy may prevent the company from maximizing their revenue. As of March 31, New York City’s five pensions funds held over 1.4 million shares in Costco valued at over $67 million in addition to corporate bonds worth over $2 million.
Participation in SNAP comes at no cost to a company and has limited set up requirements. Current federal policy mandates that the state provides food stamp processing equipment to the qualified retailers free of charge. Qualification is determined by the USDA based on the availability of healthy food options offered by the business.
In the letter sent to Costco CEO James Sinegal and Board of Directors, Councilman Gioia and Public Advocate Gotbaum proposed implementation of a six-month pilot program to test acceptance of food stamps at the new East Harlem store. Costco’s primary competitors, BJ’s and Sam’s Club, have already revised their policies and started to accept food stamps at all locations nationwide in response to the challenging economic climate.
“It would be good policy, and good business, for Costco to accept Food Stamps,” stated
Public Advocate Gotbaum. “An increasing number of New Yorkers are receiving and applying for Food Stamps, and Costco could improve its image and expand its customer base by providing a great service to struggling families. I’ve sent a letter to Costco, cosigned by Councilmember Gioia, calling for a pilot program at its new East Harlem location,” she continued.
Approximately 32,000 residents of East Harlem receive food stamp benefits, and may benefit from having access to healthier food alternatives offered at the warehouse store. However, none of the Costco locations, including three other stores in New York City, currently accept food stamps.
Nearly 32 million people participate in the Supplemental Nutrition Assistance Program (SNAP) that allocates food stamps across the United States, including over 1.2 million in New York City. SNAP enrollment in New York City increased by 195,610 between February 2008 and February 2009. New York City residents received over $181 million in food stamp benefits in January 2009 alone, and are expected to receive over $200 million per month with the recent passage of the American Recovery and Reinvestment Act.
“Costco’s current policy is not only bad for New Yorkers, it’s bad for their bottom line,” said Councilman Gioia. “In East Harlem alone, 32,000 additional New Yorkers who use food stamps would benefit from the fresh produce and healthy food that Costco offers. In tough economic times more people than ever will qualify for food stamps and there’s simply no good reason for Costco to continue to refuse them as payment,” he added.
Previous studies reported that fewer healthy foods are available for sale in East and Central Harlem when compared to the Upper East Side. This may contribute to the high obesity and diabetes rates reported for this area. Statistics from the New York City Department of Health show that 46 percent of public elementary school children and 60 percent of adults are obese or overweight in East and Central Harlem. Increase in Type 2 Diabetes incidence among children has also been reported.
“At a time when so many families are struggling to put healthy food on the table, every retailer that’s eligible should accept food stamps,” noted Council Member Melissa Mark Viverito, who represents the East Harlem area. “When access to healthy options is limited, myriad health problems follow—including obesity and diabetes. Food stamps allow New Yorkers to put better food on the table,” she added.
Since New York City pension funds have significant holdings in Costco, Public Advocate Gotbaum and Councilman Gioia also expressed concern that Costco’s current policy may prevent the company from maximizing their revenue. As of March 31, New York City’s five pensions funds held over 1.4 million shares in Costco valued at over $67 million in addition to corporate bonds worth over $2 million.
Participation in SNAP comes at no cost to a company and has limited set up requirements. Current federal policy mandates that the state provides food stamp processing equipment to the qualified retailers free of charge. Qualification is determined by the USDA based on the availability of healthy food options offered by the business.
