Instacart Uses SNAP Delivery Discount to Woo Lower-Income Shoppers

This week in grocery, Instacart unveils a SNAP grocery delivery deal and self-service technology expands.

In a bid to shake the association of grocery delivery with higher-income consumers with money to spare, aggregator Instacart is offering discounted memberships to Supplemental Nutrition Assistance Program (SNAP) participants, the company announced Tuesday (Dec. 20).

Specifically, the aggregator is offering those who have made an Electronic Benefit Transfer (EBT) SNAP purchase through its marketplace in the last half a year to get an Instacart+ membership for 50% off for a year.

“Connecting people to food is at the heart of what we do at Instacart, and we’re dedicated to helping everyone access the nourishment needed to lead healthy lives,” Sarah Mastrorocco, Instacart vice president and general manager of health, wrote in the announcement. “As the cost of groceries continues to rise, affordability is even more essential for nutrition insecure families across the country.”

Amazon Expands Just Walk Out to More Venues

Amazon’s Just Walk Out technology continues to take over food shops large and small, not only growing its reach to include non-Amazon-owned grocers but also finding a foothold in live event venues.

Last Thursday (Dec. 15), Kansas City’s T-Mobile Center, home to a range of live music shows, sporting events and more, announced the opening of a small-format shop using Just Walk Out checkout entitled 816 Market. At this location, consumers scan their card on entry, pick up items and leave.

“T-Mobile Center has a rich history of hosting some of the most popular events in the US, like NCAA basketball tournaments, world renowned musicians, and top performing artists,” Dilip Kumar, vice president, AWS applications, said in a statement. “We’re thrilled to be collaborating with T-Mobile Center and Levy to enable an effortless shopping experience for guests so they can grab what they need and get back to their seats as fast as possible.”

The news comes just weeks after the NFL’s Seattle Seahawks’ stadium, Lumen Field, announced via Twitter the opening of three concessions shops powered by the technology.

Research from “Decoding Customer Affinity: The Customer Loyalty to Merchants Survey 2022,” a PYMNTS and Toshiba collaboration, found that around one-third of the 2,000 grocery shoppers surveyed see the ability to choose their favorite payment options as an important variable impacting their loyalty to merchants.

The checkout experience can be a make-or-break factor when it comes to customer loyalty.

“The frustrations that may mount during an unsatisfactory in-store shopping journey can make any [other] improvements irrelevant,” noted PYMNTS’ recent study, “Navigating Big Retail’s Digital Shift: The New Payments Strategy Evolution,” created in collaboration with ACI Worldwide. “Ensure that checkouts are friction-free by consistently testing in-store shopping tools, such as self-service inventory checks or apps, for technical issues or unnecessary complexity.”

Morrisons Taps Lockers for Self-Service Pickup Collection

United Kingdom supermarket chain Morrisons, which operates nearly 500 locations across the country, is expanding its test of pickup lockers such that the technology is available at almost 80% of its stores, British outlet Grocery Gazette reported Tuesday (Dec. 20).

In addition to enabling consumers to collect their orders, the lockers also make it possible for consumers to send parcels and return items without waiting in line for an associate.

“At Morrisons, we always put our customers first, and are constantly looking for ways to make their lives easier,” Morrisons Procurement Director Jamie Winter said in a statement quoted by the publication. “InPost parcel lockers provide them with the ultimate convenience by allowing them to pick up and return their parcels while they’re visiting our stores — instead of having to go out of their way.

A significant share of consumers seek in-store pickup options. Research from the November/December edition of PYMNTS’ monthly ConnectedEconomy™ study, the “ConnectedEconomy™ Monthly Report: The Gender Divide Edition,” which drew from a survey of more than 2,600 U.S. consumers in October, found that 43% of men and 30% place buy online, pickup in store (BOPIS) digital grocery orders.