Its going to impact everyone Silicon Valley grocers expect sales hit from assistance cuts

Grocery stores in Silicon Valley are preparing for a downturn in sales due to federal cuts to food assistance programs, specifically a $186 billion reduction in SNAP funding projected over the next decade. Lupe Lopez, owner of Arteaga’s Food Center, foresees a loss of about $500,000 annually at her Gilroy location as food stamp benefits decrease by 20%. The changes will also expand work requirements for recipients, potentially impacting many low-income families in Santa Clara County, where CalFresh participation has reached a decade high. Jessie Medina from Freshko Produce Services advises local grocers to closely monitor their inventory in response to the anticipated changes. Some market owners, like Yolanda Lopez of Mi Rancho, expect minimal impact on their sales, as their revenue is less reliant on government assistance.

Nevertheless, the overall financial strain could hinder local investments and employment opportunities. As the cuts take effect in October, the ripple effects on the community could be significant. Families reliant on food stamps may struggle to maintain their grocery budgets, affecting food security in the region.