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Focus on margin and expense management along with investments in stores, staff and communities
FORT LAUDERDALE, Fla., Aug. 17, 2023 /PRNewswire/ — The 2023 edition of the Independent Grocers Financial Study, joint research between the National Grocers Association (NGA) and FMS Solutions, documents small grocers’ operational and financial performance in a continued complex marketplace.
Inflation, competition and continued supply issues were just some of the challenges facing independent grocers in 2022.
Reflecting record participation, 521 independent grocers representing nearly 2,000 stores shared their results for fiscal year 2022, which runs through March 31, 2023. “Independent grocers’ knowledge of the marketplace, grit and nimbleness resulted in a solid year in most key metrics,” said Robert Graybill, president and CEO of FMS Solutions.
Inflation dominated the headlines and the bottom lines in fiscal year 2022. Shoppers sought out sales promotions, switched between stores and, above all else, bought less. This hurt volume and unit sales, and inventory turns slowed, while shrink increased. “Same-store dollar sales still trended 4.8% above year-ago levels,” shared Graybill, “but sales growth was below the rate of inflation for 77% of independents.”
Out-of-stocks improved over 2021, but procurement remained a challenge. Nearly half of independent grocers sourced products from channels other than traditional wholesalers due to more favorable pricing.
“Inflation, competition and continued supply issues were just some of the challenges facing independent grocers in 2022,” noted Greg Ferrara, NGA president and CEO. “However, independent grocers did what they do best: pivot to meet the everchanging marketplace opportunities and challenges. Independents reinvested into their stores and built or expanded loyalty programs, e-commerce platforms and digital marketing.”
Employee turnover remained an issue, averaging 57% in 2022. “Despite the challenges, only 35% have turned to…
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