Target has plans in the works to accept online SNAP payments for eligible grocery items.
Target Corp. 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.
"Later this year, Target guests will have the ability to pay for SNAP-eligible grocery items on Target.com and via our mobile website as an enhancement to existing SNAP payment capabilities in-store," said a Target spokesperson. "Guests will be able to shop across Target’s broad food and beverage assortment and use our fast and contactless same-day services Order Pick Up and Drive Up, making it even easier and more convenient to shop with us."
The move follows similar rollouts from Walmart and Amazon in 2019, which were part of a program with the U.S. Department of Agriculture, and is poised to help Target gain more foothold with lower-income consumers. 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.
“Target is kind of taking the long view, saying you can use your food stamps now,” David Klink, senior equity analyst at Huntington Private Bank, told Reuters. “But maybe at some point you won’t depend on food stamps and you’ll remember that Target was there for your various shopping needs.”
The new service 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 will further enhance its same-day pickup services later this year by allowing customers to pick up Starbucks coffee orders and return products curbside, among other improvements.
Minneapolis-based Target Corp. is No. 6 on The PG 100, Progressive Grocer’s 2021 list of the top food and consumables retailers in North America, with nearly 2,000 locations