Arizona grocery and convenience stores lost more than 2% of their jobs in the first quarter of 2026, four times the nationwide decline of about 0.5%, according to the latest data from the U.S. Bureau of Labor Statistics. Wages in the state fell 3%, compared with less than 1% nationally.

Economists attribute the losses to reductions in Supplemental Nutrition Assistance Program benefits. About 175,000 Arizona residents lost their SNAP spending, which lowers purchasing power at grocery stores.

The smallest counties took the biggest employment hits. Grocery employment in Santa Cruz County fell around 19%, and Graham County lost 13%, according to the data. Maricopa County suffered the largest decline in absolute terms.

The national picture is stark. More than 5.3 million fewer people receive SNAP benefits, according to data from the U.S. Department of Agriculture. Alaska was the only state that did not record reductions; benefits there increased 8.2% compared with last year. Arizona residents took the biggest hit, with a 54.8% decrease. Florida, Georgia and Louisiana each saw SNAP benefits drop more than 20%.

The job and wage losses put hard numbers on what retailers have been reporting since the benefit changes took effect. Store closures are one visible consequence. Seven Save A Lot stores in Chicago closed in July, and SNAP was primarily to blame.

Ahold Delhaize put a precise figure on the drag. During its earnings call last week, the company said cuts to SNAP reduced its U.S. sales growth in the second quarter and will have an ongoing impact through 2026. The retailer reported U.S. comparable-store sales gains of 0.8% for the quarter and net sales gains of 1.4% to about $15 billion at constant exchange rates.

The benefit reductions cut sales growth by 40 basis points in the quarter, the company said. Ahold Delhaize expects a full-year impact of between 60 and 80 basis points. SNAP sales account for about 5.3% of the company's total U.S. sales.

For marketers and retailers, that exposure matters. A benefits program that touches more than 5% of sales at a major grocery operator translates shopper-level loss directly into category-level decline.

Voters, meanwhile, show appetite for reversing at least part of the cuts. A Newsweek poll conducted in August found voters on both sides of the political spectrum want SNAP benefits increased for single mothers and people who live alone. Surveys covering 11 states and 28 competitive congressional districts showed most Democrats and Republicans support more benefits for people living alone, who currently receive $170 per month on average. A majority of Democratic voters also backed more help for single mothers.

The parties differ on scale. The median Democrat supported $250 for people living alone, while the median Republican preferred $200. For single mothers, Democrats favored an average of $600 and Republicans chose $554. The current average is $530 a month.

With Ahold Delhaize forecasting SNAP-related pressure on sales through 2026, and swing-district voters across both parties open to benefit increases, grocery operators and their brand partners should plan for a demand environment where recovery depends heavily on what Congress does next with the program.