NEW YORK - Changes to the Supplemental Nutrition Assistance Program (SNAP) under the Trump administration's tax law went into effect Monday, reducing benefits for millions of low-income Americans. Analysts estimate that roughly 2.4 million fewer people could receive SNAP in an average month, with families potentially losing between $72 and $231 per month.
The cuts are expected to hit small and independent grocers hardest. Stephanie Johnson of the National Grocers Association, which represents thousands of independent stores, said that low-margin retailers could face significant challenges, noting that some members rely heavily on SNAP sales. Katina Holliday, owner of Freshly's Market in Mississippi, told CNBC that her store has seen a 35-45% drop in sales in recent months, forcing staffing reductions and a hiring freeze.
Large retailers may be less affected. Consumer data cited by CNBC shows Walmart captures the largest share of SNAP spending, followed by Kroger, Costco, Amazon, and Sam's Club. Michael Baker, an analyst at D.A. Davidson & Co., told CNBC that discount grocers may benefit as shoppers "trade down to stretch their dollars," with Walmart positioned to see increased traffic despite smaller per-transaction purchases.
Other grocery chains, like Giant Eagle, are attempting to offset the impact through promotions, mobile app discounts, and loyalty programs. Experts also warn that SNAP reductions may influence the nutritional quality of food purchased, as lower-income households prioritize cost over healthier options.