ARLINGTON, Va. -- The National Grocers Association (NGA) and FMS Solutions have released the 2009 Independent Grocers Survey, a financial and operational review of the independent retail grocery industry. This year's survey showed retailers have improved their gross margins and their bottom lines. This year's survey showed a positive 4.31% increase in same store sales over last year, prior to adjustments for CPI Food at Home.
Some additional highlights include:
Breaking a three-year negative streak, respondents turned higher net profit before taxes. Overall store [image-nocss] margins had a solid increase, reporting 26.94% in 2008 versus 25.55% in 2007. The average square footage decreased from last year's respondents from 28,617 to 25,469 the total inventory in the store increased to $658,454 bringing the total inventory per square foot to an even $13.00. This is a $3.35 increase per square foot with this year's respondents. Of the total square footage in respondent's stores 84.4% of the space is actually selling square footage, up dramatically from last year's 76.5%. The survey looks at a number of different topics including the "Top 7" issues rated by NGA members: health care reform; energy costs; economic stimulus plan; supercenter legislation; (permanent repeal) death tax; immigration reform; and international policies.
Health Care Reform has been one of the biggest issues to retailers over the past decade and also one of the biggest issues for the Obama Administration. Healthcare costs saw an average increase of 7.98% in 2008, they had expected an 8.36% increase based on last years survey.
The survey also showed that:
Overall respondents are expecting an 11.18% increase this year. Respondents overwhelming, 85.3%, said that the current administration will implement change that will negatively affect the employer's bottom line. This year's respondents reported an average cost of health care of $6,581.23 per employee. The 2009 Independent Grocers Survey provides independent grocers with a look at their own community and how their fellow business owners are fairing in the current competitive and economic conditions. The study provides departmental margin breakdowns and economic data relevant to the industry. The results are based on a survey that was sent to the independent retailer communityretailers of all sizes and formats participated in the survey.
Frank DiPasquale, executive vice president of the NGA, said, "Understanding relevant industry benchmarks and characteristics of best-in-class retailers greatly improves grocers' ability to reduce costs and compete more effectively in today's environment. Retailers continue to show resiliency in a market with consumer trends changing rapidly, double digit rate increases of health care costs, as well as continued margin pressure."
Robert Graybill, president of FMS, added, "This study provides practical benchmark data for independent retailers, at a detail enough level to use in their operations. In addition, the survey truly reinforces the fact that independents are tough operators as they have managed to show improved results over the prior year in such turbulent times".
Pasadena, Md.-based FMS Solutions provides approximately 1,800 independent retail grocer and independent supermarket operations with financial, accounting and consulting services such as industry benchmarking, best practices and mission-critical decision support.
NGA is the national trade association representing the retail and wholesale 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. Most independent operators are serviced by wholesale distributors, while others may be partially or fully self-distributing. Some are publicly traded but with controlling shares held by the family and others are employee owned.
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