There's a looming threat facing America's biggest grocers

Of every $US5 spent using food stamps, $US1 is spent at Walmart.

So if the Trump administration gets its way, cuts to the Supplemental Nutrition Assistance Program could have dire consequences on Walmart and other large grocers where food stamp recipients shop.

Trump’s budget plan proposes to cut $US191 billion from SNAP over the course of a decade, CNBC reported.

The program, which currently serves around 42 million people, provides its claimants with, on average, $US252 per month, according to CNBC.

But the Trump administration’s proposed cuts, which would come into action between 2018 and 2028, would now bring this amount down to $US173 a month.

According to research done by consultancy firm AlixParnters, and reported by CNBC, these cuts could cost the retail sector $US70.7 billion. A
$US57.5 billion loss would hit the grocery sector.

AlixPartners said that Walmart, Target, Aldi, Kroger, and Kmart are expected to be hit hardest.

Food stamp cuts could cost Walmart $US12.7 billion in sales over the next decade, or $US1.27 billion a year. Target could see a loss of between $US4.8 billion and $US5.3 billion in sales.

Aldi, the European grocery chain that has outlined expansion plans to become the third-largest supermarket chain in the US after Walmart and Kroger, is also expected to suffer, costing it an estimated $US4.4 to $US4.9 billion in sales.

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