Dive Brief:
- Independent grocers are responsible for over $353 billion, or more than 38%, of the $920 billion in annual sales in the U.S. food retail sector, the National Grocers Association announced Monday in its latest economic impact analysis.
- Every $1 in independent grocery sales generates an additional 58 cents in supply chain and household spending nationwide, according to the analysis. The NGA determined that this “multiplier effect” hides the full economic impact of independent grocers.
- Total independent grocery sales grew from $253.6 billion in 2020 to $353.5 billion in 2024, a 39% increase.
Dive Insight:
The NGA’s most recent economic impact analysis found that independent grocers generate $557.5 billion in total annual economic activity, representing nearly 2% of the U.S. gross domestic product. NGA President and CEO Greg Ferrara noted that the trade group’s findings underscore consumers’ “increased preference for local and regional independent grocers.”
NGA noted that independent grocers create a “powerful ripple effect” through job creation, worker wages, rents, supply chain spending and more.
“The economic impact of independent grocery stores is likely many times the value of the amount of food they sell,” according to the report.
Despite this growth, independent grocers remain under considerable pressure from chain competitors that have greater scale and the ability to offer lower prices. The rise of omnichannel shopping, artificial intelligence and other technologies that large companies like Walmart and Kroger are adopting promise to make the landscape even more challenging for independents in the coming years.
NGA’s results are based on store-level retail sales data across all U.S. congressional districts, according to the Monday press release.
