Walgreens & Instacart Collaborate to Accept SNAP/EBT Online Nationwide

Rhea-AI Summary

Walgreens and Instacart have announced a nationwide collaboration to accept SNAP/EBT payments online at over 7,500 Walgreens stores, including 100+ Duane Reade locations in New York. This initiative allows customers to purchase thousands of SNAP-eligible products for same-day delivery via Instacart, broadening food access for over 40 million SNAP/EBT beneficiaries.

The partnership aims to enhance Walgreens' front-of-store experience and create omnichannel solutions while improving in-store efficiencies. Customers can now order SNAP-eligible items from Walgreens through Instacart's website or mobile app, selecting their SNAP EBT card as a payment method and allocating their benefits to eligible items at checkout.

Positive

• Expansion of SNAP/EBT payment acceptance to over 7,500 Walgreens stores nationwide
• Collaboration with Instacart for same-day delivery of SNAP-eligible products
• Potential increase in customer base by catering to 40 million SNAP/EBT beneficiaries
• Enhancement of omnichannel solutions and front-of-store experience

Negative

• None.

Insights

Market Research Analyst

This collaboration between Walgreens and Instacart to accept SNAP/EBT payments online is a strategic move with potential long-term benefits. By expanding access to over 7,500 stores nationwide, Walgreens taps into a market of 40+ million SNAP beneficiaries, potentially increasing its customer base and sales volume.

The initiative aligns with the growing trend of digital accessibility in retail. By eliminating transportation barriers, Walgreens could see an increase in order frequency and basket size from SNAP customers. This move may also improve brand perception and loyalty among price-sensitive consumers.

However, investors should note that while this expansion may drive revenue growth, it might initially impact profit margins due to delivery costs and potentially lower-margin SNAP-eligible products. The long-term success will depend on Walgreens' ability to optimize operations and cross-sell higher-margin items to these customers.

Financial Analyst

This partnership represents a strategic expansion of Walgreens' digital capabilities and market reach. By integrating SNAP/EBT payments online, Walgreens is positioning itself to capture a larger share of the essential goods market for low-income consumers.

From a financial perspective, this move could potentially increase transaction volume and revenue. However, it's important to consider the impact on profit margins, as SNAP-eligible items often have lower margins. The key financial metrics to watch will be:

• Changes in average order value
• Customer acquisition costs
• Delivery-related expenses

Investors should monitor how effectively Walgreens can leverage this new customer base to drive sales of higher-margin products and services. The long-term financial impact will depend on Walgreens' ability to optimize its omnichannel strategy and improve operational efficiencies in fulfilling online orders.

Walgreens and Instacart now accept SNAP/EBT payments nationwide at more than 7,500 Walgreens stores

DEERFIELD, Ill. & SAN FRANCISCO--(BUSINESS WIRE)-- Walgreens, the leading integrated independent retail pharmacy and healthcare provider, today announced a new collaboration with Instacart, the leading grocery technology company in North America, to offer online SNAP/EBT payment acceptance at more than 7,500 Walgreens stores nationwide, including over 100 Duane Reade locations in New York. Customers can now purchase thousands of SNAP-eligible products for same-day delivery via Instacart.

Walgreens and Instacart now accept SNAP/EBT payments. (Graphic: Business Wire)

Through the collaboration between Walgreens and Instacart, the companies are helping to broaden food access in communities where more than 40 million people receive SNAP/EBT benefits.¹

“Our collaboration with Instacart underscores Walgreens commitment to expanding access to essential food items for our customers,” said Balachandra Visalatha, SVP and chief product officer at Walgreens. “By integrating SNAP/EBT payments, we are making it easier for families and individuals to shop for the items they need and offer an efficient, highly relevant customer experience that meets their changing needs and preferences.”

Currently, most Walgreens stores accept SNAP/EBT for in-person purchases. The collaboration with Instacart allows customers nationwide to use SNAP/EBT at any Walgreens, eliminating the need for transportation to the store. Walgreens is focused on enhancing the front-of-store experience and creating the right omnichannel solutions for our customers, while driving in-store efficiencies.

“Through Instacart, 96% of U.S. households enrolled in SNAP can use their benefits to shop for the essentials they need online. We’re dedicated to offering the best online selection for SNAP families, providing both access and choice through our marketplace,” said Sarah Mastrorocco, vice president and general manager of health at Instacart. “As we expand with trusted retailers like Walgreens, we’re proud to help more families in more communities get their essentials delivered.”

To order Walgreens SNAP-eligible items for delivery, customers can visit www.instacart.com/walgreens or select the Walgreens storefront in the Instacart mobile app. Customers simply add their SNAP EBT card as a form of payment on their Instacart profile and shop for SNAP-eligible items from the Walgreens or Duane Reade storefront. At checkout, SNAP users can select how much of their benefit they would like to allocate to eligible items in their order.

About Walgreens

Walgreens (www.walgreens.com) is included in the U.S. Retail Pharmacy and U.S. Healthcare segments of Walgreens Boots Alliance, Inc. (Nasdaq: WBA), an integrated healthcare, pharmacy and retail leader. True to its purpose of “more joyful lives through better health,” Walgreens has a more than 120-year heritage of caring for communities and providing trusted pharmacy services, and today is playing a greater role as an independent partner of choice offering healthcare services that improve care, lower costs, and help patients. Operating nearly 9,000 retail locations across the U.S. and Puerto Rico, Walgreens is proud to serve nearly 9 million customers and patients daily. The company’s pharmacists are playing a more critical role in healthcare than ever before, providing a wide range of pharmacy and healthcare services, including those that drive equitable access to care for some of the nation’s most underserved populations. Walgreens offers customers and patients a true omnichannel experience, with fully integrated physical and digital platforms designed to deliver high-quality products and healthcare services. Within the U.S. Healthcare segment, Walgreens portfolio also includes businesses in primary care, multi-specialty, post-acute care, urgent care, specialty pharmacy services, population health and provider enablement.

About Instacart

Instacart, the leading grocery technology company in North America, works with grocers and retailers to transform how people shop. The company partners with more than 1,500 national, regional, and local retail banners to facilitate online shopping, delivery and pickup services from more than 85,000 stores across North America on the Instacart Marketplace. Instacart makes it possible for millions of people to get the groceries they need from the retailers they love, and for approximately 600,000 Instacart shoppers to earn by picking, packing and delivering orders on their own flexible schedule. The Instacart Platform offers retailers a suite of enterprise-grade technology products and services to power their e-commerce experiences, fulfill orders, digitize brick-and-mortar stores, provide advertising services, and glean insights. With Instacart Ads, thousands of CPG brands – from category leaders to emerging brands – partner with the company to connect directly with consumers online, right at the point of purchase. With Instacart Health, the company is providing tools to increase nutrition security, make healthy choices easier for consumers, and expand the role that food can play in improving health outcomes. For more information, visit www.instacart.com/company, and to start shopping, visit www.instacart.com.

¹ USDA, Economic Research Service using data from USDA, Food and Nutrition Service and the U.S. Department of Commerce, Bureau of the Census.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240806410409/en/

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FAQ

How many Walgreens stores now accept SNAP/EBT payments through Instacart?

More than 7,500 Walgreens stores nationwide, including over 100 Duane Reade locations in New York, now accept SNAP/EBT payments through Instacart.

What can customers purchase with SNAP/EBT at Walgreens (WBA) through Instacart?

Customers can purchase thousands of SNAP-eligible products for same-day delivery from Walgreens through Instacart using their SNAP/EBT benefits.

How do customers use SNAP/EBT to order from Walgreens (WBA) on Instacart?

Customers can add their SNAP EBT card as a payment method on their Instacart profile, shop for SNAP-eligible items from Walgreens, and select how much of their benefit to allocate at checkout.

What percentage of U.S. households enrolled in SNAP can use their benefits through Instacart?

According to Instacart, 96% of U.S. households enrolled in SNAP can use their benefits to shop for essentials online through their marketplace.