Target plans to accept SNAP payments for online orders

First covered by Store Brands’ sister publication Progressive Grocer, Target will soon allow its shoppers to use Supplemental Nutrition Assistance Program (SNAP) payments for online purchases, as well as drive-up and pick-up orders, according to a report from Reuters. The service will be provided by Shipt and is tentatively scheduled to begin later this month. 

Last year, IRI released a study that found store brands are highly rated by SNAP recipients, with 47% of study participants evaluating private label products as better than branded products. 24% of the shoppers in the study reported they buy mostly store brands when they use their benefits to buy food products. Another 5% said they generally buy all store brands.

Reuters reports that about 21.7 million U.S. households use food stamps, which can be used to purchase fresh produce, meat, dairy products, snack foods and non-alcoholic beverages. 

The online SNAP service, slated to begin in late April,  is also part of Target’s $5 billion investment in its physical stores, digital experiences, fulfillment capabilities and supply chain capacity in 2022 to keep driving growth after another impressive year of sales. 

"Our strong fourth-quarter performance capped off a year of record growth in 2021, reinforcing the durability of our business model and our confidence in long-term profitable growth,” said Brian Cornell, chairman and CEO of Target, during the retailer’s fourth quarter and full year ended Jan. 30 earnings report. “As we look ahead, we’ll keep investing and delivering on all that has earned the loyalty and trust of our guests; that starts with our outstanding team and includes continued differentiation through affordability, assortment, ease and convenience.” 

Target was named Store Brands’ Retailer of the Year in 2021.