The 2014 Independent Grocers Financial Survey is now available. Independents' financial performance much mirrored the nation's economy which showed modest growth and both ups and downs in consumer, financial and market performance indicators. Some retailers managed to grow sales, margins and profits whereas others handed back some of the gains accomplished in fiscal year 2012.
Independent grocers indicated 2013 was a challenging year with competitive pressures rising to new heights. "Competition in our industry will always be fierce," says Peter J. Larkin, President and CEO, National Grocers Association. "In addition to supercenters and conventional supermarkets, we've seen a variety of other formats, like dollar stores and drug stores, and price impact stores that are all competing for the food dollar. But, as always, entrepreneurial independent grocers continue to adapt and rebound in what remains to be a tough recovery for our economy."
In a difficult competitive and economic environment, independent grocers managed to hold the line on same- store sales growth. They duplicated last year's modest inflation-adjusted increase of 0.2 percent. Multi-store operators improved their sales gains compared with last year, whereas single-store operators lost ground. With rising gas prices, particularly in the second half of 2013, consumers took fewer trips (10,704 transactions per store, per week) but spent a little more on average ($24.38) when in the store.
Reflecting an improvement in inventory management, total store turns increased to 18.6. Single-store operators managed to hold the line on margins, whereas multi-store operators fell back to 2010 levels – taking the average total-store margin down just slightly to 26.12 percent of sales.
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