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SNAP changes adding more pressure to discount retailers $WMT $GD

Dollar General’s earnings miss was largely focused on falling grocery prices; however, it is beneath the headlines that details on the issue of the Supplemental Nutrition Assistance Program (SNAP) — otherwise known as Food Stamps — reveals how the regulatory component of our thematic investing approach can impact our strategies.

Discount retailers have also been hit by changes in the Supplemental Nutrition Assistance Program (SNAP), formerly called the food stamp program. By the end of 2016, as many as 22 states would have changed the criteria for SNAP – a move that is likely to result in about 1 million Americans losing benefits.States implementing SNAP changes this year include Florida, Georgia, Alabama and Tennessee, which have some of the highest concentration of Dollar General stores.

Source: Lower grocery prices, food stamp cuts hit Dollar General results | Reuters

About the Author

Chris Broussard
I'm the Co-Founder and President of Tematica Research and editor of Thematic Signals, which aims to uncover confirming data points and items to watch for our list of investing themes. Whether its a news item, video clip, or company commentary, we've included this full list of items literally "ripped from the headlines." I have been involved in financial services marketing and publishing for over 20 years – having held senior level positions with financial publishers, financial services corporations and providing marketing support and consulting services to financial institutions and independent financial advisors. My background in digital marketing, financial services and consumer research provides me with a unique perspective on how to uncover the underlying proof points that are driving the themes our Chief Investment Officer Chris Versace utilizes in our various Tematica publications.

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