We’ve analyzed the latest data for the Supplemental Nutritional Assistance Program (SNAP), better known as food stamps. Since President Obama took office in 2008, the participation has shot up drastically over the last four years. Currently, about 15% of the nation or about 46 million people are enrolled in the SNAP program.
The year-over-year growth rate is actually declining at an accelerated rate. At the current trajectory, it should go negative by October. While a positive for the American taxpayer, dollar stores like Family Dollar (FDO) and Dollar General (DG) are going to feel the pressure as more people wean themselves off food stamps. Over the last five years, the growth in the SNAP program has been a positive for dollar stores, driving new business. All good things come to an end, though. Keep an eye on names like FDO and DG as the SNAP participation rate drops.