Various studies and surveys over the years have shown that SNAP recipients are among the shoppers least likely to use coupons when grocery shopping.
The events of the past couple of weeks might have them rethinking that.
As funding for the food assistance program became caught up in the politics of the federal government shutdown, millions of families have had to stretch their dollars even further to afford their groceries. And until the government officially reopens and funding is fully restored, some are stepping up to help – to the extent they’ve been allowed to.
Many major grocery chains used the occasion to highlight their regular efforts to donate surplus food to local food banks. Others, like the Midwest’s Homeland grocery chain, helped in more creative ways – the retailer set up community “take what you need” bins in each of its stores, containing surplus food and donations that are free for the taking for families in need. Even food delivery apps have stepped up, as Instacart is covering half the cost of active SNAP customers’ next order.
What many retailers discovered they are not allowed to do, now or at any time, is offer special discounts and deals on products purchased with SNAP dollars. One locally-owned grocery store in Oregon tried to offer SNAP customers a 10% discount. A grocery store in Ohio wanted to give SNAP customers extra loyalty points they could redeem for free groceries.
But both plans, and others like it, were shot down by the U.S. Department of Agriculture, which sets the rules for SNAP. And according to those rules, “offering discounts or services only to SNAP paying customers is a SNAP violation,” as grocers “must offer eligible goods at the same prices and on the same terms and conditions” to SNAP recipients and non-recipients alike.
So when it comes to scoring deals on their groceries, SNAP recipients have been largely on their own.
Many SNAP recipients are not accustomed to using coupons, according to several recent reports. A 2018 research study found that SNAP households were “less likely to buy store brands and redeem discount coupons on SNAP-eligible food products.” When trying to figure out why, the researchers surmised that “with an enlarged mental food budget, households cut back on bargain-hunting.” In other words, some SNAP recipients subliminally consider their benefits to be like “free money,” so they spend it less wisely than they would if they weren’t receiving benefits at all.
A follow-up report in 2021 found that “SNAP shoppers are not as deal-driven,” since “lower income households buy on need and can’t wait for a sale.” The report’s author, IRI, found that 23% of all grocery products at the time were purchased with a coupon or when the items were on sale. But that was true for only 16% of all grocery products purchased by the lowest earners. Those shoppers, IRI concluded, are more likely to shop at stores that offer everyday low prices instead of seeking out deals.
And given the uncertainty over when and whether recipients might finally get access to this month’s SNAP benefits, clipping coupons and seeking out deals might be sounding like a good idea right about now.
Some New York lawmakers want to make that process seamless. A bill under consideration in the state legislature would require grocery stores in the state to “establish a mechanism to apply any available coupons or discounts to purchases made by eligible recipients of SNAP benefits.” That could theoretically save everyone money, as the taxpayer-funded program would be able to provide recipients with more food at less cost.
In the meantime, even after it’s restored, the lapse in SNAP funding could end up costing everyone. Many grocery retailers rely on the steady stream of income from SNAP shoppers spending their SNAP dollars in their stores. Particularly in “small and mid-sized stores in communities where SNAP transactions make up a significant share of sales,” Michigan State University food economics professor David Ortega commented recently, a disruption in SNAP shopper spending “could lead to price increases” for all shoppers.
According to the research firm Numerator, “SNAP shoppers may be cash-strapped, but they’re savvy and significant grocery spenders.” They may not always clip coupons. But as a group, they do attempt to spend their money wisely – something one might hope can be said about our government as well.
Image source: USDA
