Agile independent companies manage to steer clear of consumer skepticism and operational hurdles
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The 2025 Independent Grocers Financial Study by the National Grocers Association (NGA) and FMS Solutions has shed light on several significant findings and trends related to consumer behaviour, operational challenges, and financial performance for independent grocers.
Key Findings
Rising Store Shrink
One of the key findings is the increase in store shrink, which averaged 3.5% of sales in the fiscal year 2024, up from 3.0% the previous year. This rise in shrink presents a significant financial challenge for independent grocers, encompassing losses from theft, spoilage, and errors [1].
Consumer Behaviour
Independent grocers have demonstrated agility amidst consumer caution, adapting their operations to shifting buying patterns and economic pressures. However, specific consumer behaviour trends beyond caution were not detailed in the available sources [5].
Operational Challenges
Apart from shrink, independent grocers are confronting complex operational challenges such as managing data transparency, benchmarking, and technology adoption. The study and related industry moves emphasize the need for specialized accounting and management tools tailored to independents rather than chain-focused solutions [5].
Financial Performance and Benchmarking
The acquisition of AMP Services and Merchants Accounting Services by FMS underscores a broader trend toward providing independent grocers with advanced financial dashboards, peer benchmarking, KPI tracking, and tailored growth strategies. These tools are designed to deliver timely, actionable financial insights similar to those available to large chains, empowering independents to take profitable tactical and strategic actions [5].
Focus on Scalability and Data-Driven Insights
The study and related industry developments emphasize democratizing data and technology access, ensuring independent grocers avoid expensive, chain-centric platforms, and instead receive commercially viable, actionable insights to support growth and customer experience focus [5].
Additional Findings
- Grocery inflation remained moderate during fiscal year 2024.
- Sales growth was 1.3% year over year.
- Weekly transactions grew to an average of 8,609 per store as customers hunted for promotions, but spending per trip declined as non-essential items weren't purchased.
- Multi-store operators experienced a 2.2% increase in sales, while single-store grocers saw a 0.8% dip.
- E-commerce accounted for 1% of total sales.
- 95% of independent grocers made use of ad circulars, with an increasing shift to digital formats.
- Labor and benefits alone hit a record 16.3% of net sales.
- The average online basket size was $105, compared to $34 in-store.
- The study identified perimeter bakery as an emerging differentiator for independent grocers.
- Adoption of self-checkout slowed, with just 47% of respondents offering the capability.
- Shoppers emphasized value due to plummeting consumer sentiment early in the year, fueled by tariff worries, stock market fluctuations, and financial fatigue caused by a long period of inflation.
In conclusion, the 2025 study shows independent grocers face increasing shrink and operational complexity, drive adaptability in consumer engagement amid economic caution, and improve financial performance through enhanced access to tailored data analytics and benchmarking tools. The evolving financial solutions ecosystem aims to empower independents with the sophistication of larger chains while respecting their unique scale and needs [1][5].
[1] National Grocers Association (NGA) and FMS Solutions, 2025 Independent Grocers Financial Study, www.nga.org/2025study
[5] National Grocers Association (NGA) and FMS Solutions press release, "2025 Independent Grocers Financial Study Highlights Key Findings and Trends," www.nga.org/press-release/2025-independent-grocers-financial-study-highlights-key-findings-and-trends
- The financial performance of independent grocers can be improved through the use of advanced financial dashboards, peer benchmarking, KPI tracking, and tailored growth strategies, as demonstrated by the acquisition of AMP Services and Merchants Accounting Services by FMS Solutions.
- In the retail industry, independent grocers are encountering operational challenges such as managing data transparency, benchmarking, and technology adoption, which are emphasized by the 2025 Independent Grocers Financial Study and related industry moves.
