Wednesday, May 13, 2009

Costco Gets a Black Mark in NYC

Since I am a serious Costco-phile, it seems fair to mention that they're running into resistance in NYC where they're building a gigantic store on the EastSide, but are not accepting Food Stamps. Their explanation is that their IT systems can't handle it, but that seems pretty lame. Here's the story:

November 19, 2008, 6:30 am

Why Doesn’t Costco Accept Food Stamps?

CostcoCouncilman Eric N. Gioia outside the Costco store in Long Island City, Queens.

Farmers’ markets accept food stamps. The Harlem Fairway accepts food stamps. So does Trader Joe’s in Brooklyn. Even Whole Foods, which has been trying to shake that “Whole Paycheck” image, accepts food stamps. But Costco, the warehouse retailer that made its reputation as the anti-Wal-Mart, generous not only to Costco’s customers but to its workers as well, does not.

“Costco in general has a reputation of being a socially conscious company,” said Eric N. Gioia, a city councilman from Queens who last year began a campaign asking Costco to accept food stamps after discovering it did not during the “live on food stamps for a week” stunt. “There is no logical reason for someone not to accept food stamps. It is not only compassionate, but it’s good for their bottom line.”

My presumption is they will capitulate. This is so out of line with their image and PR.

2 comments:

Anonymous said...

Costco is in the business of making profits. If food stamps could make it money, they would gladly accept them.

It is possible their warehouse model doesn't fit with the management responsibilities of food stamps.

I need Money said...

lol my favorite term was costo-phile