You may recall how Issaquah-based retailer Costco’s refusal to accept food stamps

You may recall how Issaquah-based retailer Costco’s refusal to accept food stamps created an uproar in East Harlem, where its new store has received all sorts of tax breaks as well as exemptions from noise statutes so that it can drive its semis through residential streets in the middle of the night, and where 40% of the residents use food stamps. Well, it looks like the company is reversing course; it said it will begin accepting food stamps in two New York stores, with an eye to expanding the policy nationwide. Meanwhile, though, Costco profits went the way of everyone else’s–i.e. down. Third-quarter profits for the company fell 29%, partly because it paid a $34 million settlement in a lawsuit over its membership renewal policy, but also because people aren’t spending as much on big-ticket items and because the dollar is weaker. Perhaps more small-ticket spending by the now-eligible working poor will help.