Nearly 42 million Americans face missing their food stamp check as the government shutdown continues. SNAP benefits will be suspended on Nov. 1 if the shutdown persists, affecting 73% of beneficiaries living below the poverty line. The loss of aid could lead to increased theft and a shift towards lower profit margin groceries.

The potential lapse in SNAP benefits would have a ripple effect on the economy, impacting retailers from small grocers to massive chains like Walmart. SNAP recipients spend more on groceries than non-recipients, with an average monthly spend of $187. The loss of assistance would be a significant blow to low-income Americans.

Retailers like Walmart, Dollar General, and Dollar Tree are more likely to cater to SNAP shoppers, with Walmart capturing the most SNAP grocery spending. The potential loss of aid from the shutdown is the second recent hit to government food assistance programs for lower-income Americans, following a 20% cut in SNAP benefits earlier this year.

If SNAP funding expires, recipients may buy less of other goods as discretionary spending shifts towards food. States are beginning to step in, with New York Gov. Kathy Hochul working on $30 million in aid for impacted residents. Missed SNAP benefits should be paid in arrears once the government reopens.

Read more at CNBC: How SNAP benefit lapse could affect consumers and retailers