Costco Will Accept Food Stamps At 2 Clubs As Trial

SARAH SKIDMORE

PORTLAND, Ore. (AP) — Responding to the economic pressures on its shoppers, Costco Wholesale Corp. said Wednesday that it will soon install the equipment to accept food stamps at two of its New York City stores as part of a pilot program.

Costco, one of the nation's largest wholesale club chains, said its future New York City locations also will be equipped to accept food stamps as payment if the pilot goes well. A company representative was not immediately available to discuss whether Costco would expand the service to its more than 400 other stores in the U.S.

Costco, which reports its earnings Thursday, is the latest of several discounters to begin accepting food stamps as job losses and other economic pressures take their toll on consumers.

BJ's Wholesale Club announced in April that all of its 180 stores will begin accepting electronic food stamp for payment. And discounter Family Dollar Stores Inc. is in the midst of making all its stores capable of accepting food stamps, the federal subsidy for unemployed and very low-income people.

Costco said it expects the trial stores in Queens and Brooklyn, which were selected because of the high penetration of food-stamp recipients in their areas, will be equipped by early summer with the technology to accept food stamps.