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Food stamp cuts could cost retailers $70.7 billion


Proposed cuts in food stamp benefits could cost the the retail industry billions — with supermarkets and discounters taking the biggest hit.

AlixPartners estimates that retail collectively stands to lose $70.7 billion during the next 10 years if the proposed cuts in the Supplemental Nutrition Assistance Program (commonly referred to as food stamps) turn into reality, CNBC reported. The budget proposed by the Trump administration calls for $191 billion in cuts to the program between 2018 to 2028.

In 2016, supermarkets and superstores received 81% of the SNAP benefits, according to the report, with Walmart redeeming the most. AlixPartners estimates the chain would take a $12.7 billion hit to U.S. sales over the next decade if the cuts pass as is. Target would also be hard hit, with an estimated $4.8 billion to $5.3 billion sales loss. Aldi is close behind, at $4.4 billion to $4.9 billion.

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