Local grocers and convenience stores face challenges as SNAP benefits decrease customer spending
Recent changes to Supplemental Nutrition Assistance Program (SNAP) benefits have had a detrimental impact on local grocers and convenience stores across the United States. As these benefits decrease, small businesses that rely heavily on SNAP funding are facing significant challenges.
Impact of Decreased SNAP Benefits
Ryan Sprankle, who operates a family-owned grocery chain near Pittsburgh, expressed concern over how prospective government aid cuts affect customer spending. The Trump administration froze SNAP funding at the end of October, which affects around 42 million Americans. As a result, stores like Sprankle’s have seen a decline in revenue.
Statistics on SNAP Spending
- In 2024, SNAP recipients redeemed approximately $96 billion in benefits.
- 74% of these benefits were used at larger supermarkets and superstores.
- Only 14% of SNAP funds were spent at smaller grocers and convenience stores.
Grocers’ Reactions and Challenges
Etharin Cousin, a former director of the United Nations World Food Program, noted that SNAP not only aids families but also supports local economies. The cessation of benefits has quick and harsh consequences for small retailers who typically operate on slim profit margins.
Sprankle indicated that 25% of his store’s revenue comes from SNAP. With the shutdown, he has noticed a decrease in spending from customers, which in turn affects his ability to support his 140 employees, many of whom fear job loss.
Experiences from Other Store Owners
In Chicago, Liz Abunaw, the operator of Forty Acres Fresh Market, witnessed a customer returning a cart of groceries due to a lack of funds without SNAP. The supermarket, which opened in September, only sees 12% of its revenue from SNAP. The reductions in benefits threaten her business’s future sustainability.
Similarly, Kanbe’s Markets, a nonprofit managing supplies for over 100 convenience stores in Kansas City, reported a 10% drop in sales following the benefit cutoff at the beginning of November. Founder Maxfield Kaniger highlighted the urgent need for effective food distribution as food pantries requested significantly larger orders than usual.
Community Responses to the SNAP Challenges
Babir Sultan, who operates four FavTrip stores in food deserts around Kansas City, saw an 8% to 10% decrease in visits to his stores. In response, he is offering $10 of free produce to SNAP recipients while remaining open to helping other customers in need. Sultan emphasized that economic strain impacts everyone in the community.
As the U.S. government deliberates on restoring SNAP benefits, the future of local grocers and convenience stores hangs in the balance. These establishments play a critical role in food access for many Americans, and their stability is tied to the flow of government assistance.
