This week, we talk with Steven Bertram, COO of 8th & Walton, about the recent changes to the Supplemental Nutrition Assistance Program (SNAP/food stamps) and how suppliers can respond to new product listing standards.
Lainie: There have been some changes to the Supplemental Nutrition Assistance Program, also known as SNAP or food stamps. What can you tell us about how this will impact Walmart and its suppliers? Do you think there will be a change in basket size, particularly with concerns about rising costs, tariffs, and now these additional restrictions?
Steven: Yes. So, baskets anticipate the change in two different ways. First, there’s some potential for basket size to decrease because there are fewer benefits. Some items that were typically included may be left off the list. However, there’s also a possibility for Walmart’s basket numbers to increase, as they could be attracting consumers coming from other grocery retailers with higher prices.
If the benefits don’t exist, customers will be looking for the lowest prices they can find, because they’ll still need to purchase groceries. From a supplier standpoint, they’ll need to be aware of when these changes take effect and closely monitor volume trends, so they can react accordingly, whether that involves adjusting forecasts up or down.
Either way, this is beneficial for them with Walmart, as the productivity of their inventory is a crucial part of the scorecard.
Lainie: Are there any other adjustments that suppliers need to be aware of?
Steven: Yes. Because such a large portion of sales now come through Walmart’s .com platform for online grocery pickup and delivery, the content needs to be good enough that determinations can be made by both Walmart and consumers about whether items are eligible for SNAP. Imagery, especially nutritionally relevant elements such as fact panels and ingredient labels, needs to be clear and visible on the site.
Steven: Those images must be high quality and easily viewable, so Walmart can place filters for consumers to shop easily, and so customers can understand if those items fit within their SNAP benefits.
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