Changes to federal assistance programs like SNAP and WIC are poised to significantly alter the landscape of American grocery retail and delivery.
As policymakers debate proposals to restrict eligibility or broaden the types of items covered, including prepared “hot meals,” major players in the food retail industry are assessing the potential impact on consumer behavior, supply chains, and long-standing partnerships with delivery platforms.
The most immediate concern across the grocery ecosystem is how reductions in total benefit eligibility could affect overall spending.
For grocers that serve low-income households, especially those in rural or economically vulnerable areas, any contraction in federal food assistance spending could trigger lower volumes and decreased in-store traffic. On the other hand, a proposed expansion in allowable items—including ready-to-eat hot meals—could shift spending patterns away from traditional groceries and toward fast food providers or convenience-based meal solutions.
This would create ripple effects across the sector, with potential realignments in inventory strategies, pricing models, and tech infrastructure.
Walmart, the country’s dominant retailer in the assistance space, stands at the center of these developments. The retail giant captures approximately 25 percent of all SNAP spending nationwide.
That market share has been bolstered in recent years by investments in digital infrastructure that enable online SNAP and WIC purchases—a capability that few competitors can match at scale. A pilot program recently launched in Walmart stores in Massachusetts and Washington now allows customers to use WIC benefits online, signaling further integration between public assistance and digital retail platforms.
If eligibility for hot meals is added to SNAP provisions, Walmart could see some erosion of its market share as consumers gain the ability to purchase food from restaurants or quick-service providers.
However, the company’s breadth, logistical capacity, and partnerships with third-party delivery platforms like DoorDash and Instacart offer it a competitive edge in adapting to regulatory changes.
Still, reduced benefit levels or tighter eligibility standards could have a dampening effect, particularly in areas where SNAP usage drives a significant share of Walmart’s sales.
The delivery sector also stands to be reshaped by any expansion of benefit eligibility. Companies like DoorDash, Instacart, and Uber Eats are exploring ways to integrate SNAP and WIC payments into their platforms, positioning themselves as potential conduits for assistance-driven food delivery.
DoorDash’s recent partnership with Schnucks Markets, for instance, reflects the growing convergence of grocery retail and app-based delivery. Should regulations allow for SNAP to cover hot meals, these platforms could see a surge in demand, particularly for fast food and ready-to-eat options.
However, there are obstacles. Integrating EBT payment systems with delivery platforms poses technical and compliance challenges. There is also potential for policy pushback from health advocates concerned about the nutritional implications of expanding SNAP to include fast food.
Still, the broader trend suggests that flexibility in benefit usage—both in what can be purchased and how—will continue to drive innovation in the delivery and grocery space.
Retailers and delivery platforms alike are watching Washington closely. The outcome of these debates could redefine how millions of Americans access food, how companies capture that spending, and how the digital infrastructure of food assistance evolves in the years ahead.
