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Reinstating $6.99 minimum basket fee for SNAP orders under

$35

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Fee removed during pandemic amid social distancing

restrictions

By Siddharth Cavale

NEW YORK, April 30 (Reuters) - Walmart ( WMT ) is

reinstating a minimum basket fee for customers who qualify for

U.S. government assistance and those subscribed to its Walmart+

Assist program, according to a memo seen by Reuters and

confirmed by Walmart ( WMT ).

The move to reinstate the fee, which was waived during

the COVID-19 pandemic, comes as the largest U.S. retailer is

bracing for a tough year ahead as its customers, who typically

skew low income, temper spending.

Recipients of government assistance programs like the

Supplemental Nutrition Assistance Program (SNAP) who use

Electronic Benefits Transfer (EBT) payments will now pay a

minimum basket fee of $6.99 for pick up and delivery of grocery

purchases from a store if they do not meet a $35 threshold.

Previously, this fee was waived for those on SNAP.

EBT is a system used by the U.S. government to deliver

government assistance benefits, commonly known as food stamps,

and works like a prepaid debit card.

"We're reinstating minimum basket fees for customers

with EBT cards saved to their Walmart ( WMT ) account," an internal

guidance memo sent to its customer service staff on Monday read.

A minimum basket fee covers the costs of picking and

packing an order from a store, which can be more expensive than

shipping from a warehouse and does not include delivery charges.

"If an EBT customer asks why we charged them a minimum

basket fee, explain this is the correct fee for orders under

$35," the memo said.

Walmart+ Assist is a membership plan offered by Walmart ( WMT ) that

gives shoppers on government assistance a 50% discount on the

standard Walmart+ membership, reducing the annual cost to $49

compared with the regular $98 fee.

Walmart ( WMT ) said it had previously removed the minimum basket

fee due to social distancing restrictions.

"Moving forward, the standard $35 minimum basket fee will be

in place for all orders," a Walmart ( WMT ) spokesperson said on

Wednesday.

Research from data analytics firm Numerator shows Walmart ( WMT )

accounts for nearly 26% of spending by SNAP recipients.

The retailer has been trying to rein in costs by closing

offices and asking staff to relocate to its Bentonville,

Arkansas headquarters, or asking some of its suppliers to absorb

price hikes caused by tariffs.

The retailer issued disappointing guidance for 2025 in part

due to the uncertainty surrounding tariffs, but it also posted a

10% rise in quarterly income boosted by its advertising and

Walmart+ business, which are more profitable than its core

business of selling low-margin groceries.

Walmart+ has been a strong driver of loyalty and sales with

growth coming from both lower and higher income households, Seth

Dallaire, Walmart's ( WMT ) chief growth officer, said at an April

investor conference.

Subscribers visit Walmart's ( WMT ) stores twice as much and spend

three times as much as non-members, he said, adding that

membership income rose nearly 40% in its most recent quarter

ended January. Lower-income households "love" Walmart+ because

of grocery delivery, Dallaire said.

"The delivery saves you the cost of public transportation

or fuel costs, or you using a ride-sharing app, for instance,

like a Lyft or Uber. They tell us they really value it that

way."