USDA: SNAP enrollment fell 5.3M to 37M. Ahold Delhaize said cuts trimmed US sales by 40bps in Q2, expects 60-80bps hit for 2026. Save A Lot closed 7 Chicago stores. Grocers face persistent pressure.
More than 5.3 million people have lost access to Supplemental Nutrition Assistance Program benefits since the government imposed new work requirements on Feb. 1, according to the U.S. Department of Agriculture.
USDA data shows SNAP enrollment fell to just over 37 million in April 2026, down from roughly 42.3 million a year earlier. The program now costs about $51.4 billion, compared with almost $96 billion last year.
Arizona saw the steepest decline, with benefits dropping 54.8%. Florida, Georgia and Louisiana each recorded reductions of more than 20%. Alaska was the only state where enrollment rose, up 8.2%.
The grocery industry is already feeling the effect. Seven Save A Lot stores in Chicago closed in July, and the company blamed SNAP cuts. Ahold Delhaize, the supermarket operator behind Stop & Shop and Giant, said during its second-quarter earnings call last week that the benefit reductions trimmed its U.S. sales growth by 40 basis points in the quarter. The company expects the drag to widen to 60 to 80 basis points for the full year.
SNAP sales account for about 5.3% of Ahold Delhaize's total U.S. revenue, the company said. Comparable-store sales in the U.S. rose 0.8% in the quarter, while net sales gained 1.4% to roughly $15 billion at constant exchange rates. Without the SNAP headwind, growth would have been stronger.
The USDA projects SNAP spending will fall 20% over the next decade, a $186 billion reduction. That timeline means grocery retailers with heavy exposure to low-income shoppers will face persistent pressure on same-store sales and margins.
For investors tracking the sector, the key question is how quickly grocers can adjust their cost structures and product mix to offset the lost revenue. Some chains are expanding private-label offerings and loyalty programs to retain SNAP recipients who still shop but spend less per trip. Others are closing underperforming stores, as Save A Lot did.
The next quarterly reports from major U.S. grocers will show whether Ahold Delhaize's experience is an outlier or the new normal. Kroger and Albertsons report in September.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.