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News Article: Key Findings of the 2025 Independent Grocers Financial Study
The National Grocers Association (NGA) and FMS Solutions have recently released the "2025 Independent Grocers Financial Study," providing a comprehensive analysis of the financial and operational performance of independent grocers during fiscal year 2024.
One of the key findings of the study is the increase in store shrink, which rose to 3.5% of sales in fiscal year 2024, up from 3.0% the year prior. This indicates rising losses due to theft, spoilage, or errors that are costing independent grocers more.
Despite these challenges, independent grocers demonstrated resilience and adaptability in meeting evolving consumer needs amid persistent cost pressures and economic uncertainty. Sales growth was 1.3% year over year, with weekly transactions growing to an average of 8,609 per store as customers hunted for promotions.
The report also highlights the importance of using advanced financial tools and analytics, as FMS Solutions supports independent grocers with scalable financial services, benchmarking, and strategic advisory to help improve profitability and operations.
Multi-store operators experienced a 2.2% gain in sales, while single-store grocers had a 0.8% dip. Inventory turns rose to 17.8, although shrink grew to 3.5%. Margins held steady at 27.4%, but total expenses increased to 25.8% of sales. E-commerce accounted for 1% of total sales, and 95% of independent grocers made use of ad circulars, with an increasing shift to digital formats.
Operational challenges were also a focus of the study, with part-time associate turnover at 40.7% overall and 55.8% among multi-store operators. Labor and benefits alone hit a record 16.3% of net sales.
The study identified perimeter bakery as an emerging differentiator for independents, with many employing seasonal items, in-store baking, and signature products to boost customer engagement and drive margin. Plummeting consumer sentiment early in the year led shoppers to emphasize value, and grocery inflation remained moderate during fiscal year 2024.
Adoption of self-checkout slowed, with just 47% of respondents offering the capability. The report does not mention any changes in operationally, such as associate turnover or adoption of technology.
If you want more detailed insights on other financial and operational trends from the 2025 study, they may be available directly from NGA or FMS Solutions publications or releases not included in these search results. The study offers segmented insights by store count, region, and sales volume, based on responses from 93 survey participants representing 626 store locations.
- The study revealed that independent retailers in the food-and-drink industry, particularly those operating multiple stores, experienced a higher sales growth compared to single-store grocers.
- The report underscores the significance of utilizing advanced financial tools and analytics in the business sector, as they can help improve profitability and operations, aiding independent grocers in the finance field.
- In the realm of lifestyle, the study identified perimeter bakery as a potential differentiator for independent grocers, with in-store baking, seasonal items, and signature products being key strategies to boost customer engagement and drive margin.
