Price Variability Across Food Product and Vendor Type in Food Benefit Redemptions Under the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)

Abstract

This report examines variability in WIC food transaction prices across store formats and four WIC State agencies in the Midwest, West, Southwest, and Mountain Plains using purchase-level data on 2014 Electronic Benefit Transfer (WIC EBT) transactions. While mass merchandisers and traditional grocers tended to have the lowest transaction prices in many product categories, prices vary greatly across States and store formats. Thus, the costliness of food baskets composed of various WIC food items varied significantly across the various store formats of WIC vendors, driven by prices in select product categories. State agencies may be able to reduce food costs in several key product categories, but potential savings may be outweighed by compromises to participant satisfaction or access to food benefits.