New Study: Independent Grocers Demonstrated Resilience Amid Economic Uncertainty

Independent grocers saw success through value-driven strategies, operational discipline and innovative technologies to strengthen marketing, efficiency and customer service

FORT LAUDERDALE, Fla., July 30, 2026 /PRNewswire/ -- The National Grocers Association (NGA) and FMS Solutions (FMS) today released the 2026 U.S. Independent Grocers Financial Study, a comprehensive look at the operational and financial performance of independent grocery operators for fiscal year 2025, ending March 31, 2026.

The annual study, considered the leading financial benchmarking resource for the independent grocery industry, found that operators remained financially resilient in fiscal year 2025 despite a challenging operating environment marked by cautious consumer spending, elevated household debt levels and ongoing economic uncertainty.

Key Findings

Financial performance remained resilient despite modest top-line growth.  Total store gross margin increased from 27.4% to 27.9% year over year. Same-store sales grew 0.4%, modest but positive against intense competition for value-conscious consumers. Operators achieved these results through careful cost management, promotional execution, inventory management and operational efficiency.

Shoppers changed how and how much they spent. Grocery inflation moderated compared with previous years, but consumers continued feeling the cumulative effects of several years of higher food prices. Shoppers made more frequent trips while buying fewer items per visit, leaning heavily on promotions, private brands and value-focused strategies. Independent grocers responded with stronger loyalty initiatives, digital engagement and a continued emphasis on fresh foods.

Operational execution was a mixed picture. Out-of-stock levels improved, falling to 6.6%, and wholesaler service levels remained above 90%. However, total store inventory turns declined from 17.8 to 16.1, and shrink rose to 3.9% of sales, areas the study identifies as priorities for operators focused on closing the performance gap with industry leaders.

Labor remained the industry's most persistent challenge. Store-level employee turnover averaged 44% in fiscal year 2025. Rising wages and benefit costs increased pressure across the industry, and only half of independent grocers have implemented self-checkout. When consumers become more price-conscious, food-at-home spending typically proves more resilient than restaurant spending, positioning well-run independents to earn long-term shopper loyalty.

Profit leaders separated themselves through operational discipline. Top-performing operators distinguished themselves through lower shrink, stronger inventory management, disciplined expense control and investment in fresh departments. Produce, meat, deli, bakery and seafood remained defining differentiators among the highest-performing independents.

E-commerce is a significant, underutilized opportunity. Online sales represented just 1.1% of independent grocers' total revenue in fiscal year 2025. The average online basket was roughly three times the size of the typical in-store transaction, pointing to meaningful upside for operators willing to invest in their digital presence.

Regional performance continued to diverge. The South and West produced the strongest profitability results, while the Northeast continued to face higher labor and occupancy costs alongside intense competitive pressure.

Capital investment was measured. Capital expenditures averaged just over 2% of sales. Remodel activity reached one of the lowest levels on record, reflecting the wave of capital projects completed earlier in the decade. Consumer interest in health, protein, ingredient transparency and GLP-1-related eating patterns continued to create new opportunities in fresh foods and perimeter departments.

Artificial intelligence is moving from conversation to pilot. The 2026 study examines technology, including AI, as a key strategic theme. While only a small share of independent retailers currently use AI extensively, most are piloting or evaluating applications, primarily in marketing content, customer engagement and business analytics. Operators broadly view AI as increasingly important to competitiveness over the next several years, though adoption remains in its early stages.

Quotes

"Same-store sales up 0.4%, margins improved, EBITDA holding steady, in this environment, that is a genuinely strong result. But the more interesting story is what the data reveals about opportunity: e-commerce basket sizes three times the in-store average, AI adoption still in early stages, shrink still costing operators real margin. There is meaningful upside here for operators ready to act on it."

Robert Graybill, President & CEO, FMS Solutions

"When shoppers tighten their budgets, they don't abandon their local grocer; they rely on them more. The 2025 data reflects a channel that has earned that trust, and independent operators who continue investing in fresh, in loyalty and in their people will be the ones consumers keep coming back to."

Greg Ferrara, President & CEO, National Grocers Association

"The gap between profit leaders and the rest of the channel shows up the same way every year: shrink rates, inventory turns, expense ratios, fresh department performance. This study maps that gap with precision. Operators who use that data to drive decisions are the ones who show up differently in next year's numbers."

Robert Graybill, President & CEO, FMS Solutions

About the Study

The 2026 U.S. Independent Grocers Financial Study covers fiscal year 2025 performance data from independent grocery operators across the United States. Results are segmented by store count, region and sales volume where data is available. The study is produced by FMS Solutions in partnership with the National Grocers Association.

Get your copy of the study: 2026 U.S. Independent Grocers Financial Study

About FMS Solutions

FMS Solutions (FMS) is a trusted partner to independent retailers, offering the FMS Advantage, a comprehensive suite of SaaS and managed services for accounting, tax, finance, labor management, order tracking, shrink control, and markdown management. The suite is anchored by Profit Hound™, a real-time dashboard that brings financial, operational, and labor data together in one place, so retailers can respond faster to what's impacting their business. With decades of deep industry expertise and a legacy dating back to 1974, FMS empowers retailers with the clarity and control to turn everyday operations into strategic decisions. From single-store operators to leading independent chains, FMS provides innovative tools and expert guidance to drive sustainable growth and profitability.

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. FMS is headquartered in Fort Lauderdale, FL and has offices throughout North America and several global innovation centers. To learn more, visit www.fmssolutions.com.

About NGA

NGA is the nation's leading 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 in a variety of formats. The independent grocery sector accounts for 2 percent of the nation's overall economy and generates more than $557.5 billion in annual economic activity, 1.5 million jobs, $115 billion in wages, and $27 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.

SOURCE FMS Solutions