Retail giant Target is planning to offer an option to purchase its products online with food stamps for the first time this month.
In a March 1 press release, the Minneapolis, Minn.-based company announced that it would “enable guests to purchase Supplemental Nutrition Assistance Program (SNAP)-eligible grocery items on Target.com,” as part of its 2022 technology enhancements.
Last week, Target disclosed to Reuters that it will begin “tentatively” accepting online payments via food stamps in late April through its Shift delivery service.
According to the outlet, a Target spokesman said Thursday that the company has not “shared any official launch date” for the service, which also will include drive-up and pick-up orders.
Data released last month showed that more than 21.6 million U.S. households were part of the SNAP program, which “provides nutrition benefits to supplement the food budget of needy families so they can purchase healthy food and move towards self-sufficiency.”
Use of food stamps is mostly restricted to cold food items, non-alcoholic beverages and seeds and plants, said Reuters.
There was an increase in SNAP households by the end of 2021 compared to 2020. According to an analysis published last month by Adobe, grocery prices were up 7.6% year-over-year as of February.
SNAP eligibility requirements are regularly updated. To buy groceries online, food-stamp recipients usually need electronic benefits transfer (EBT) card, which is similar to a debit card.
Last summer, President Joe Biden signed an executive order that modernized SNAP benefits.
In the press release from last month, Target said “with this functionality, guests can shop for SNAP-eligible items online and choose Target’s free, same-day services Drive Up and Order Pickup, adding ease and convenience to the shopping experience,” of its online SNAP purchasing offerings.
Customers who use food stamps have been able to shop online at Amazon and Walmart since 2019 through a program with the U.S. Department of Agriculture, which distributes food stamps.
Instacart also offers online food stamp purchases for products from a range of stores, including BJ's Wholesale Club, Food Lion, Publix and Ahold Delhaize USA. Reuters said Instacart waived its $3.99 delivery fees for food stamp purchases through March 31. Amazon is another company that has offered discounts to food stamp customers.
Delivery fees for orders at Target are $7 per delivery, said Reuters. Subscribers who pay $99 per year get free same-day delivery.
Richard Gomez, Target’s chief food and beverage officer, told investors last month that Target is “going to make our entire experience, in-store and online, accessible to all families, allowing them to shop on their terms regardless of how they pay for their groceries.”
As of 2020, groceries made up 20% of all Target’s $92.4 billion in sales.
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