Independent Grocers Demonstrate Agility Amid Consumer Caution and Operational Challenges, 2025 Financial Study Finds
FORT LAUDERDALE, Fla., June 25, 2025 /PRNewswire/ -- The 2025 Independent Grocers Financial Study, released today by the National Grocers Association (NGA) and FMS Solutions, provides a comprehensive analysis of independent grocers' financial and operational performance during fiscal year 2024, ending March 31, 2025. In a year marked by persistent cost pressures and economic uncertainty, independent grocers demonstrated notable resilience and adaptability in meeting changing consumer needs.
While grocery inflation remained moderate, a sharp drop in consumer sentiment in early 2025—driven by tariff concerns, stock market volatility, and financial fatigue from prolonged inflation—led shoppers to prioritize value. Weekly transactions increased to an average of 8,609 per store as customers sought promotions, although spending per trip declined as non-essential purchases were avoided. In response, 95% of independent grocers utilized ad circulars, with a growing shift to digital formats.
"Independent grocers continue to be a vital, adaptive force in communities across the country," said Greg Ferrara, NGA President and CEO. "Despite rising costs and shifting consumer dynamics, these retailers are finding creative ways to deliver value and maintain community connections."
Operationally, independent grocers faced notable workforce challenges, with part-time associate turnover at 40.7% overall and 55.8% among multi-store operators. Adoption of self-checkout slowed, with only 47% of respondents offering the option. Inventory turns improved to 17.8, though shrink increased to 3.5%. Margins held steady at 27.4%, but total expenses climbed to 25.8% of sales—driven by higher labor, benefits, credit card fees, and utilities. Labor and benefits alone reached a record 16.3% of net sales.
"Fiscal year 2024 proved to be a story of contrasts," said Robert Graybill, President and CEO of FMS Solutions. "Net profit edged up to 1.9%, led by larger operators. EBITDA, however, diverged—falling to 1.52% among single-store grocers while rising to 3.28% for multi-store and higher-volume operators. This highlights the continuing advantage of scale and operational efficiency."
Sales increased 1.3% year-over-year, driven by a 2.2% gain among multi-store operators, compared to a -0.8% decline for single-store grocers. E-commerce remained modest at 1% of total sales but generated significantly larger average baskets: $105 online versus $34 in-store.
The report also highlights perimeter bakery as a growing differentiator. Many independents leveraged seasonal items, in-store baking, and signature products to enhance customer engagement and drive margin.
The 2025 Independent Grocers Financial Study is based on responses from 93 survey participants representing 626 store locations and incorporates financial benchmarks from FMS Solutions' database of 507 independent grocers with 1,911 store locations. The report provides segmented insights by store count, region, and sales volume, offering a valuable resource for benchmarking and informed strategic decision-making in today's evolving grocery landscape.
About FMS Solutions
FMS Solutions (FMS) is a trusted partner for independent retailers, delivering the FMS Advantage—a comprehensive suite of accounting, tax, finance, labor management solutions, and SaaS solutions and services. With decades of deep industry expertise and a legacy dating back to 1974, FMS empowers grocers with real-time, data-driven insights that turn everyday operations into strategic decisions.
Serving over 6,800 locations across all 50 states, Canada, and the Caribbean, FMS helps independent retailers boost profitability, streamline operations, and stay ahead in a competitive market. From single-store operators to many of the top major independents, FMS' innovative tools and expert guidance support long-term growth.
Headquartered in Fort Lauderdale, Florida, FMS has offices throughout North America and several global innovation centers. To learn more, visit www.fmssolutions.com or call 877.435.9400.
About NGA
NGA is the national trade association representing the retail and wholesale community grocers that comprise the independent sector of the food distribution industry. An independent retailer is a privately owned or controlled food retail company operating a variety of formats. The independent grocery sector is accountable for about 1.2 percent of the nation's overall economy and is responsible for generating more than $250 billion in sales, 1.1 million jobs, $39 billion in wages and $36 billion in taxes. NGA members include retail and wholesale grocers located in every congressional district across the country, as well as state grocers' associations, manufacturers and service suppliers. For more information about NGA, visit www.nationalgrocers.org.
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SOURCE FMS Solutions