Warehouse Clubs vs. Dollar Stores: Where SNAP Households Are Saving Now
Roughly 42 million Americans rely on the Supplemental Nutrition Assistance Program (SNAP) each month to help pay for groceries. Because benefits are limited, many recipients are highly budget‑conscious shoppers — making their purchasing habits relevant even for households that don’t use SNAP.
New research from Fetch shows those habits are shifting. Tracking shopping behavior among households using EBT as a payment method in Iowa, Indiana, Nebraska, Utah and West Virginia, the data found that consumers are switching up where they shop to stretch their food budgets.
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While grocery stores and dollar stores have traditionally been go‑to destinations for budget shoppers, year‑over‑year spending among SNAP households is rising at warehouse clubs and convenience stores. At the same time, spending at grocery and dollar stores has edged lower.
Here’s a closer look at what’s driving the shift — and which types of stores may offer the best value for SNAP recipients and other budget-conscious shoppers.
Why SNAP Recipients Are Shopping Less at Grocery and Dollar Stores
Year over year, spending at both grocery stores and dollar stores fell by 1% among SNAP households, according to Fetch.
“As budgets tighten, SNAP shoppers are becoming more deliberate about where their dollars go," said Carmen Gonzalez-Meister, general manager at Fetch. "Traditional grocery and dollar stores often serve more immediate, smaller-basket needs, but they don’t always deliver the strongest price-per-unit value. We’re seeing a shift toward retailers like warehouse clubs, where shoppers can stretch their benefits further over time."
Fetch’s data also suggests SNAP households are prioritizing essentials over discretionary items.
"While categories like soda and candy are growing with consumers overall, SNAP households are pulling back in these areas, focusing spend on essentials and maximizing value where it matters most,” Gonzalez-Meister said.
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Why SNAP Households Are Favoring Warehouse Clubs
Spending at warehouse clubs among SNAP recipients rose 14% year over year, the data shows.
“Rising costs are reshaping not just what consumers buy, but where they shop," Gonzalez-Meister said.
Warehouse clubs often appeal to SNAP households because bulk purchases can deliver a lower price per unit, helping benefits last longer.
"The increase in warehouse club trips signals a clear focus on value optimization," Gonzalez-Meister said. "Bulk purchasing allows SNAP shoppers to extend their benefits further across the month.”
Which Stores Offer the Best Value for SNAP Shoppers
There’s no single “best” place for SNAP households to shop. The most cost‑effective option often depends on timing, household size and the types of items being purchased.
“It ultimately depends on the shopper’s needs and timing, but in general, retailers that offer strong price-per-unit value tend to provide the most benefit," Gonzalez-Meister said.
Still, shoppers can’t rely on one strategy or one store alone.
"‘Best’ is increasingly dynamic," Gonzalez-Meister said. "Pricing can vary significantly based on promotions, retailer investments, and available rewards or incentives, which are playing a bigger role in where consumers choose to shop."
Fetch’s data shows that many SNAP households are becoming more strategic, splitting trips across multiple retailers to maximize value.
"That might mean buying in bulk at a warehouse club for staples, while still relying on grocery or dollar stores for immediacy, promotions or smaller fill-in trips," Gonzalez-Meister said. "In today’s environment, it’s less about a single ‘best’ store and more about how shoppers combine channels to stretch their dollars as far as possible.”
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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