SNAP spending reached an all-time high of $113.8 billion in fiscal year 2021, according to the USDA. This is largely due to recent economic challenges in the last few years and the expansion of SNAP benefits during the pandemic.
Benefits of Accepting EBT at Your Store
Accepting EBT at your store has many benefits for your business. A recent Supermarket News article cited “SNAP households represent 24% of U.S. consumer goods spend.” Opening your doors to this new market can increase your revenue and your store’s foot traffic.
Supermarket News summarized a recent report about the impact of SNAP customers…
SNAP recipients are diverse
- The report found 45% of SNAP recipients have children, 29% have 5+ members in their household, and 37% are Gen Z or Millennia Additionally, a CBPP report states more than 41% of SNAP recipients are in working families and 36% are in families with members who are older adults or disabled.
SNAP recipients spend more per trip
- SNAP recipients have a basket size that is $15 larger than the average customer with almost double the units and tend to spend around $18 more per trip.
SNAP recipients spend more per unit
- SNAP consumers are paying 13% more per unit based on data from the latest quarter. According to Supermarket News, this is due to increased inflation on baby and health/beauty products.
Private label brands are outperforming CPG in some stores
- Aldi, Walmart, and Kirkland private label brands are experiencing less lost sales compared to CPG brands
SNAP recipients are shopping at more regional and ethnic grocery stores
- Regional and ethnic grocery stores are experiencing a growth in SNAP customers. SNAP customers make of 36% of projected trips for retailers like Whole Foods, according to the article.
SNAP consumers are shifting from eating out to eating in
- SNAP recipients are backing off from eating out 4+ times per week (37% of SNAP recipients) to grocery shopping and eating in.
Based on the data, SNAP recipients are key customers for grocery stores, convenience stores, bodegas, pharmacies, and other specialty retailers. These customers can provide many benefits for your store, so if you aren’t accepting EBT you’re missing out on revenue. Becoming a SNAP retailer may seem overwhelming, but goEBT makes the process easy with these free resources for retailers.