Walmart’s commanding share of the SNAP market, Amazon’s aggressive push for SNAP accessibility, and the emergence of third-party delivery apps accepting SNAP benefits underscore a significant evolution in how low-income households access groceries.
The Supplemental Nutrition Assistance Program (SNAP), a critical federal aid program, supports millions of Americans in meeting their basic food needs. As digital innovations reshape the retail industry, SNAP’s reach and influence are expanding across new platforms and shopping environments.
Walmart has cemented itself as the top retailer for SNAP beneficiaries, accounting for more than 25% of all SNAP dollars. According to data from Numerator, in the 12-month period ending July 31, 2024, Walmart captured 25.8% of grocery spending by SNAP households, with nearly 95% of SNAP users shopping at Walmart.
Walmart's extensive store network, competitive pricing, and integrated technology solutions explain much of its dominance. The retailer's nationwide presence ensures that even in food deserts—regions with limited access to affordable groceries—customers can find a Walmart within reasonable distance.
Furthermore, Walmart’s adoption of SNAP benefits for online grocery shopping and delivery has been pivotal. The company's app and website allow SNAP recipients to easily use their benefits for purchases, further solidifying its appeal.
Walmart’s ability to leverage scale and technology extends beyond brick-and-mortar stores. By integrating EBT (Electronic Benefits Transfer) systems into its online shopping platforms, the retailer enables SNAP recipients to purchase groceries from home, a service that has gained substantial traction during and after the COVID-19 pandemic.
Amazon has also emerged as a key player in the SNAP ecosystem, particularly through its digital-first approach. With initiatives like a discounted Prime membership for SNAP recipients and the acceptance of EBT for eligible grocery items, Amazon is increasingly targeting low-income shoppers.
In April 2024, Amazon launched a low-cost grocery delivery subscription that provides unlimited deliveries for $9.99 per month for Prime members and $4.99 per month for SNAP beneficiaries who opt out of Prime.
These efforts reflect Amazon’s broader strategy to compete with Walmart in the grocery space. For many SNAP recipients, particularly those in rural areas or urban food deserts, Amazon provides access to a wide range of grocery items unavailable in their local markets.
Additionally, Amazon's partnerships with local grocers through its Amazon Fresh and Whole Foods brands expand its reach and availability.
Dollar stores have long been a go-to option for SNAP beneficiaries due to their affordability and ubiquity, especially in underserved areas. However, recent data suggests a slight decline in SNAP and WIC (Women, Infants, and Children) benefit usage at dollar stores. Numerator reported that SNAP and WIC usage at these outlets dropped to 4.3% in 2024, compared to 4.9% in 2023.
One factor behind this decline could be the expiration of the federal government’s SNAP Emergency Allotment program in 2023. The program had temporarily boosted benefits during the pandemic, enabling recipients to shop at a wider range of retailers, including larger grocery chains.
With the end of these extra benefits, dollar stores may find it harder to compete with retailers like Walmart and Amazon, which offer broader product selections and increasingly seamless shopping experiences.
Nevertheless, dollar stores remain a lifeline for many SNAP users. Chains such as Dollar General and Family Dollar have begun piloting fresh produce sections and expanded food offerings to attract and retain SNAP customers.
One of the most transformative trends in SNAP usage is the growing adoption of third-party delivery apps that accept EBT payments. Companies like Instacart, DoorDash, and, more recently, Uber Eats have recognized the importance of catering to SNAP beneficiaries.
Uber Eats announced plans to accept SNAP benefits, joining a burgeoning list of delivery platforms that allow customers to purchase groceries using EBT cards. Instacart, which partnered with several major grocery chains to accept EBT payments, has seen significant growth in SNAP orders.
These platforms offer convenience and accessibility, particularly for individuals who face mobility challenges or live in areas with limited retail options.
The integration of SNAP into delivery apps also aligns with broader consumer preferences for online and app-based shopping. However, challenges remain. Many delivery apps impose fees or minimum order thresholds, which can deter low-income customers.
Additionally, not all SNAP recipients have access to the internet or smartphones, creating a digital divide that could leave some beneficiaries behind.
The pandemic fundamentally altered how SNAP benefits are used, with an increased emphasis on digital and delivery options.
During the COVID-19 crisis, the USDA expanded the Online Purchasing Pilot, enabling SNAP recipients to use their benefits for online grocery shopping. Walmart, Amazon, and a handful of regional grocers were early participants, setting the stage for a broader shift in SNAP usage patterns.
While the Emergency Allotment program has ended, the habits formed during the pandemic persist. More households are now comfortable shopping online, and the convenience of home delivery has become a necessity for many.
Despite the advancements in SNAP accessibility, challenges remain. Many SNAP recipients still face barriers to utilizing their benefits online, including a lack of digital literacy, internet access, or transportation to pick up online orders.
Additionally, some retailers and delivery apps have not fully integrated EBT payment systems, creating inconsistencies in the shopping experience.
Policy changes at the federal level could also impact SNAP’s future. Discussions around increasing benefits, expanding the list of eligible items, or mandating greater retailer participation in online programs could reshape the landscape further.
Retailers like Walmart and Amazon are likely to play a central role in these discussions, given their significant share of SNAP spending.
The evolving landscape of SNAP usage reflects broader trends in retail and consumer behavior. Walmart's dominance shows no signs of waning, but competitors like Amazon and regional grocers are gaining ground. Meanwhile, the integration of SNAP into third-party delivery apps represents a critical step toward making food assistance programs more accessible and convenient.
As technology continues to play a central role in retail, the potential for innovation in SNAP usage is vast. From expanded EBT integration to AI-driven grocery recommendations tailored to SNAP recipients, the next decade will likely bring even more changes to how low-income households access and purchase food.
