ARLINGTON, VA – The National Grocers Association (N.G.A.) and FMS Solutions have released the 2010 Independent Grocers Survey – a financial and operational review of the independent retail grocery industry.
Overall findings showed that retailers weathered the last year by netting a 1.68 percent net profit before taxes; compared to public companies reported an average of 1.31 percent net profit before taxes. It was a solid showing considering the current economic environment. Retailers were also faced with a value-based shopper and stronger than ever price competition. Last year's survey results for total gross margins for respondents were 26.94 percent with the 2010 survey reporting 26.28 percent.
The survey looks at a number of different topics including the "Top 7" issues rated by N.G.A. Members and they are: health care reform; energy costs, economic stimulus plan, death tax permanent repeal, international policies, supercenter legislation and immigration reform. Health care reform has been one of the biggest issues to retailers over the past few years. It is not surprising that the ranking for health care remained the number one concern and increased in its ranking by .46 while remaining in the number one spot.
The 2010 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 community – retailers of all sizes and formats participated in the survey.
Frank DiPasquale, Executive Vice President of the National Grocers Association, 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." He also stated "Independent retailers showed just how agile and skilled their companies are by performing so strongly in the height of the recession. It is amazing to see their ability to compete against the big box retailers with such a price sensitive consumer."
Source: National Grocers Association