Nick Nickitas, CEO and founder of Rosie
In March 2020, the Food and Nutrition Service—the federal agency responsible for administering the nation’s domestic nutrition assistance programs—expanded its pilot program to bring the Supplemental Nutrition Assistance Program (SNAP) online to 47 states, up from eight. The government did that as the need for safe grocery shopping grew during the COVID-19 pandemic.
Against this backdrop, we see a moment of incredible need. Neighbors and local businesses are coming together to take care of one another and support the most vulnerable in our communities. One of the many things setting independent grocers apart is the integral role they play in ensuring food access and security for the communities they serve.
We’ve heard from countless retailers that offering SNAP (commonly referred to as the Food Stamps program) online to customers with food insecurity is a top priority for 2021. With grocery ecommerce booming in the wake of the pandemic, it’s time to make online shopping accessible for everyone, especially those on food assistance.
According to the Center on Budget and Policy Priorities, SNAP purchases make up roughly 8% of the food Americans purchase for their homes—about $56 billion in 2019. But, while most SNAP customers redeem benefits at big brand stores, 80% of SNAP-approved retailers are locally owned independents. This makes independents a crucial part of the food distribution infrastructure for those relying on SNAP.
Why accepting SNAP online makes sense
There are several reasons why independents must continue bringing SNAP payments online. First, online grocery shopping is fulfilling a great need for those unable to go to a store in person. Many are homebound due to safety concerns during the pandemic, time constraints from work schedules, or a disability. In fact, one in four SNAP participants (about 11 million Americans of all ages) has a disability. Now more than ever, grocery ecommerce bridges the accessibility gap for so many who retailers could better serve online.
Additionally, SNAP payments can account for 5% to 50% of a grocer’s sales, depending on their locations and the communities they serve. With changing shopping habits due to the pandemic, nearly 80% of Americans have bought groceries online during COVID. Independent grocers can’t afford to miss out on the SNAP sales they could be losing to brands like Walmart and Kroger. Those big chains already allow SNAP participants to join this new era of ecommerce brought about by the pandemic. It’s particularly important for independents that support many SNAP sales to expand their offering online.
Now is the time
One such retailer is Lake Region IGA in Hawley, Pennsylvania, a Rosie client recently approved to participate in the pilot program. For Lake Region IGA, SNAP payments are an important part of sales and an essential way to support customers.
“SNAP customers deserve the same conveniences as cash- and credit-paying customers,” says Irene Cooper, project manager at Lake Region IGA. “Providing our SNAP-paying customers the ability to shop online and get their groceries delivered is on the top of our list for 2021.”
Now is the time to begin the process of adding online SNAP capabilities through your ecommerce provider. Experts predict ecommerce is here to stay. Also, the number of Americans buying groceries online will keep growing in 2021, as millions wait to receive a vaccine.
Retailers, I urge you to alleviate food insecurity in your community. Make online shopping more accessible for all the customers you serve. Now more than ever, we’re seeing the strength of American communities and the determination of local business owners. There has never been a better moment for independent grocers to do what they do best: take care of their communities and customers.
Rosie is an online grocery retail platform aimed primarily at independent grocery retailers.
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