If you thought lower prices were a hopeless quest – like the Holy Grail – you may be in luck. A new survey reveals that smaller, independent grocery stores are far from extinct. In fact, independents still account for almost 40 percent of US grocery sales…
The National Grocers Association (NGA) represents independent grocery stores and supermarkets across the US. It’s annual Economic Impact Analysis (EIA) is the unofficial ‘State of the Industry’ report.
This year’s EIA shows continued strength in the independent grocery sector, with significant growth over the past decade and continued bright prospects for the future.
Key findings…
The key numbers from the EIA include:
- $557.5 billion in total annual economic output, representing nearly 2.0 percent of the entire US economy.
- $353.5 billion in direct retail sales, accounting for 38.4 percent of the $920 billion US food retailing sector.
- 1.58x multiplier effect, meaning every $1 in independent grocery sales generates an additional $0.58 in supply chain and household spending nationwide.
- 1.48 million American jobs supported, including 1.14 million directly employed, plus an additional 340,000 supported through supply chain and induced activity.
“This report confirms what our member companies see every day in the communities they serve: independent grocers are the economic backbone of Main Streets across America,” NGA President and CEO Greg Ferrara adds.
“Accounting for nearly 39 percent of the total US food retail sector, up from 33 percent in 2021, our data clearly shows consumers increased preference for local and regional independent grocers. This data reinforces the opportunity for suppliers to increase their engagement with this growing segment while also demonstrating the important role these job creators play in the local economy.”
Good news for consumers…
… Because independents have greater flexibility in sourcing products – especially meat and produce, where they have the freedom to seek out local suppliers.
This flexibility allows them to offer fresher products at lower seasonal prices. But it also allows inde-pendents to ‘shop’ a wide range of suppliers, offering a wider choice of products and taking advant-age of competitive prices governed by supply and demand. Chain supermarkets are tied to head office supply agreements with specific brands for many of the products they sell. And those agree-ments often stipulate that store managers can’t stock competing brands.
A renaissance in the offing?
“This report confirms what our member companies see every day in the communities they serve: independent grocers are the economic backbone of Main Streets across America,” Ferrara observes, citing the 6 percent increase in popular preference for independent grocers over the post-COVID era.
“This data reinforces the opportunity for suppliers to increase their engagement with this growing segment while also demonstrating the important role these job creators play in the local economy.”
My take
The latest NGA Economic Impact Analysis might just signal the beginning of a renaissance in the institution of the local, independent grocery store. I’m old enough to remember when they were still the norm. I also remember how their proprietors were members of the community, who know their customers not only as a source of income but as friends.
Most prominently, though, I remember how our local grocery stores tailored their offerings to the needs and wishes of our community – and considered sourcing the highest quality products the lowest possible price a moral and ethical duty to their neighbours…
~ Maggie J.