Agile indie companies adapt to consumer wariness and logistical challenges
In a recently released report, the National Grocers Association (NGA) and FMS Solutions have revealed the key findings of the 2025 Independent Grocers Financial Study. The study offers valuable insights into the financial and operational performance of independent grocers during fiscal year 2024.
Amid economic uncertainty, rising costs, and shifting consumer behaviour, independent grocers demonstrated resilience and adaptability. The study showed that net profit increased slightly to 1.9% in fiscal year 2024, with larger operators leading the growth.
One of the notable findings was the divergence in EBITDA during the analyzed period. EBITDA fell to 1.52% among single-store grocers but rose to 3.28% for multi-store and higher-volume operators, highlighting the advantage of scale and operational efficiency.
Sales growth was another area of focus, with overall sales growing by 1.3% year-over-year. Multi-store operators drove the increase with a 2.2% gain, while single-store operators experienced a 0.8% decline.
E-commerce remained a modest force, accounting for 1% of total sales, but generated considerably larger average baskets: $105 online compared with $34 in-store.
The study also identified perimeter bakery as an emerging differentiator for independent grocers, with many employing seasonal items, in-store baking, and signature products. This strategic approach to bakery offerings is helping independents engage customers and improve margins.
Operationally, independent grocers faced workforce challenges, including a 40.7% part-time associate turnover overall and 55.8% among multi-store operators. Total store shrink rose to 3.5% in 2024 from 3.0% the previous year, with nearly 1 in 5 independents reporting increases—more than double the rate from past years—indicating growing losses from theft, spoilage, or errors.
Labor and benefits costs also represent a record 16.3% of expenses, and nearly 1 in 5 independents reported increases in these costs, reflecting a challenging labor market.
The study is based on 93 survey respondents representing 626 stores and financial benchmarks from a broader database covering 507 independent grocers with 1,911 store locations, offering segmented insights by store size and region.
In summary, the study highlights how scale benefits multi-store operators in profitability and sales growth, while labour, shrink, and economic pressures continue to challenge independent grocers. Strategic use of perimeter bakery and engagement with e-commerce, though modest in size, are emerging trends supporting performance.
- Despite economic challenges and rising costs, the study findings reveal an increase in net profit for independent grocers in the lifestyle sector, with larger operators showing significant growth.
- In contrast to single-store grocers, multi-store and higher-volume operators in the food-and-drink industry experienced a rise in EBITDA, demonstrating the advantages of scale and operational efficiency.
