How delayed SNAP benefits are hurting small U.S. grocers and convenience stores

"A little more than a year ago, Ryan Sprankle welcomed President Donald Trump to one of the three grocery stores his family owns near Pittsburgh. Trump was on the campaign trail; they talked about high grocery prices, and the Republican nominee picked up a bag of popcorn.But these days, Sprankle would have a different message if Trump or any lawmakers visited his store. He wants them to know that delayed SNAP benefits during the government shutdown hurt his customers and his small, independent chain."

"In 2024, SNAP recipients redeemed a little more than $96 billion in benefits, according to the U.S. Department of Agriculture, which administers the program. The majority - 74% -was spent at superstores and supermarkets, a category that includes big chains like Walmart and Kroger but also some independent stores like Sprankle's.Around 14% was spent at smaller grocery and convenience stores, businesses often tucked into neighborhoods and more easily accessible to SNAP beneficiaries."

"Etharin Cousin, a former director of the United Nations World Food Program and founder of the nonprofit Food Systems for the Future, said the cutoff of SNAP benefits had immediate impacts on grocers and convenience stores of all sizes, most of which operate on slim profit margins of 1% to 2%."SNAP isn't just a social safety net for families. It's also a local economic engine," Cousin said."

SNAP funding was frozen at the end of October during the government shutdown, disrupting food access for about 42 million Americans. The U.S. Senate passed legislation to reopen the government and replenish SNAP funds, but the House still must consider the bill and the timing of resumed payments remains unclear. In 2024, recipients redeemed just over $96 billion in benefits, with 74% spent at superstores and supermarkets and about 14% at smaller grocery and convenience stores. The cutoff immediately impacted grocers that operate on slim profit margins of 1% to 2%, reducing local economic activity and harming vulnerable customers.

Read at Fast Company