Costco Will Accept Food Stamps At 2 Clubs As Trial

"In the past, we have not been convinced that there was sufficient demand among our membership to justify the expense and possible inefficiencies associated with accepting food stamps," Costco Chief Executive Jim Sinegal said in a statement. "However, we are mindful that many of our fellow citizens are facing unprecedented economic challenges at this time, and it seemed to us that it was worth reconsidering our position in that light. We are taking this step to see if we can be a part of the solution to the financial burden that many people are facing today."

The Issaquah, Wash.-based company said it will look at whether the food stamp acceptance meets customer demands and does not slow down its front-end operations.

New York Attorney General Andrew Cuomo criticized the retailer in a letter Wednesday for not immediately committing to accept food stamps at its East Harlem store, which is still under development.

Costco could extend the program to the store if the pilot goes well.

The East Harlem site is in a redevelopment area, which means the company has received public support. The attorney general's office said that by not accepting food stamps there, Costco is violating the purpose of tax-exempt financing it has received. An estimated 30,000 residents in East Harlem use food stamps.