Super Stores’ Impact on the Availability of Supplemental Nutrition Assistance Program-Approved Stores

Super stores have become the store of choice for USDA’s Supplemental Nutrition Assistance Program (SNAP) beneficiaries over the past 30 years and now account for more than one-half of SNAP redemptions. However, by diverting SNAP beneficiaries away from supermarkets, grocery stores, and other food retailers, super stores could force some smaller stores to exit the market. These dynamics could mean reduced access for some SNAP beneficiaries while offering cost savings to many other SNAP beneficiaries. This study examines the impact of new super store entries on the survival of existing traditional stores and the cost savings accruing to SNAP beneficiaries. We find no evidence that super store entry has reduced the number of SNAP-approved stores. SNAP beneficiaries save about $6,390 in SNAP benefits per year, per super store. If extended across all super stores, the savings would be about $108.6 million in 2015—0.26 percent of SNAP benefits—based on estimates over 2005–15 and the number of super stores in 2015