Grocery Stores NAICS 445110

Feb 14, 2026 - SNAP Restrictions Creating Confusion

• New SNAP restrictions in 18 states are creating big operational and financial challenges for grocery stores, The Wall Street Journal reports. Because each state defines “junk food,” “candy,” and “soda” differently, grocers must now classify tens of thousands of products with inconsistent rules, forcing staff to scan barcodes, check ingredients, and update POS systems item by item, per WSJ. This increases labor costs, slows checkout lines, and leads to tense customer interactions when long‑eligible items are suddenly denied. Retailers also face compliance risk: accidental sales of banned items could jeopardize a store’s ability to accept SNAP benefits. Border‑state grocers, especially in Indiana, risk losing SNAP shoppers to neighboring states with looser rules. The lack of federal definitions and uneven state guidance adds further confusion. The shifting SNAP landscape is raising administrative burdens, disrupting customer experience, and threatening sales for supermarkets already navigating tight margins and price‑sensitive shoppers.
• Consumers plan to spend more on groceries in 2026, according to an international survey conducted by consulting firm AlixPartners. While grocery is the only retail category expected to see higher overall spending this year, the outlook for traditional grocery stores is cloudy. Shoppers remain highly price‑sensitive, with 60% saying better prices or promotions are the top reason they would change stores. High prices are also reshaping behavior: many consumers plan to buy cheaper items, reduce impulse purchases, and shop less frequently. Younger and higher‑income shoppers are the most likely to increase spending, offering growth potential for retailers that can target them effectively. Digital shopping and delivery have exposed consumers to more options, intensifying competition and enabling “cherry‑picking” across multiple banners. For grocery stores, the spending increase represents opportunity, but retaining customers will require sharper pricing, stronger value messaging, and tighter loyalty strategies.

• Albertsons’ third quarter results reveal how rapidly artificial intelligence is reshaping the grocery industry, Supermarket News reports. The company’s new AI‑powered search tool drove a 10% increase in basket size among users, according to CEO Susan Morris, showing how smarter digital discovery can directly lift revenue. Albertsons is scaling AI across operations, using generative tools to improve labor forecasting and scheduling, an efficiency move that could reduce labor costs and set a precedent other grocers will follow. AI is also strengthening Albertsons’ ecommerce performance, contributing to 21% digital sales growth and faster fulfillment, with over half of online orders delivered within three hours, according to the company. These capabilities help the grocer gain market share even as middle‑income shoppers show new signs of price sensitivity and trade‑down behavior. As consumer budgets tighten, Albertsons is leaning on AI‑driven personalization, loyalty targeting, and cost management to retain shoppers.
• Producer prices for grocery stores rose 2% in November compared to a year ago after rising 1.8% in the previous November-versus-November annual comparison, according to the latest US Bureau of Labor Statistics data. By comparison, the price of food-at-home increased by 1.9% over the 12 months ending in November 2025, with meats, poultry, fish, and eggs up 4.7%, according to the Labor Department’s Consumer Price Index November 2025 report. Employment by the industry inched up 0.6% year over year in November, while the average industry wage rose 3.5% over the same period to $18.43 per hour, on par with its peak in October, BLS data show.