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Up-to-date, 2:06 p.m. | Citing the economic recession, Costco has announced that it's going to get started accepting foods stamps in its two Ny Metropolis stores — one in Astoria, Queens, and the other in Sunset Park, Brooklyn — on a trial basis,microsoft office Professional 2007 serial, starting next month. If the experimental program shows there is sufficient demand by foods stamp users, and if it does not harm efficiency, the company said, it is going to begin accepting foods stamps at all of its Ny Town shops, including a new one that is planned for East Harlem.
Costco had come under criticism recently for being one of the few large foods merchants that refused to accept food stamps. Whole Meals, Trader Joe’s and Wal-Mart all accept foods stamps.
Costco said in a statement that it did not have any current plans to roll out the meals stamp program beyond New york City. The two Ny City outlets were selected for the trial because of the high numbers of foods stamp recipients in the surrounding areas, the company said.
In a statement, the chief executive of Costco, James D. Sinegal, said:
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 foods stamps. 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.
Eric N. Gioia, a Queens city councilman whose district includes the Astoria Costco, which is within walking distance of several large housing projects, has made a campaign of asking the company to change its policy regarding meals stamps. And in East Harlem, members of the local community board had also pressed the issue.
Last week, William C. Thompson Jr., the metropolis comptroller and a mayoral candidate, pressed raised the meals stamp issue with Costco, asserting that it was in Costco’s interests to accept meals stamps given the financial climate. (The city currently holds around $66 million in Costco stock through its various pension funds, which Mr. Thompson oversees.)
Betsy Gotbaum, the city’s public advocate, who has also pressed the company [pdf] on meals stamps, said in a statement, “With today’s news, I’m hopeful that Costco has recognized both the severity of this financial crisis, and the potential to expand its customer base by reaching out to New Yorkers who are receiving Meals Stamps.”
Technology is making the decision to accept food stamps easier, as Costco needs to figure out a way to limit the use of foods stamps to eligible items.
This year, paper-based food stamps are being fully phased out in favor of an entirely electronic card-based system, which simplifies the logistics for the company.
Metropolis officials welcomed Costco’s announcement. Mr. Gioia first learned that Costco did not accept foods stamps in 2007 when he tried a one-week food-stamp-allowance diet and investigated whether they could be used in Costco. “By accepting foods stamps, Costco will allow more New Yorkers than ever to have access to fresh, healthy meals at wholesale prices — and it should be good for Costco’s bottom line,” Mr. Gioia said.
Mr. Thompson said in a statement: “Costco’s new policy will be a welcome addition to the neighborhood. Having more options and being able to buy in bulk will allow financially strapped families to stretch their dollars further.”
He added: “Further, its corporate reputation will surely be improved as it will be now joining its competitors in accepting food stamps. This is a win-win for all involved.”
The foods stamps cannot be used toward the Costco membership fee.
On Wednesday, the state attorney general, Andrew M. Cuomo, said that regardless of the outcome of the pilot program, the East Harlem store need to take meals stamps because it had received tax subsidies and financing as part of a community development program in Harlem.
In an interview, Mr. Cuomo said, “I believe that legally they have an obligation to accept them in this store because of the benefits they received.”