Key Takeaways:

  • Independent grocers generate more than $353 billion in annual sales in the U.S. food retail sector, accounting for over 38% of the $92 billion total, according to a new economic impact analysis released Monday by the National Grocers Association (NGA).
  • The analysis found that for every $1 in sales generated by independent grocers, an additional 58 cents of economic activity is stimulated across national supply chains and household spending. NGA argues that this "multiplier effect" masks the full economic impact of independent grocers.
  • Total sales by independent grocers grew from $253.6 billion in 2020 to $353.5 billion in 2024, an increase of 39%.

Deeper Insights:

NGA's latest economic impact analysis found that independent grocers create $557.5 billion in total annual economic activity, accounting for approximately 2% of the U.S. gross domestic product (GDP). Greg Ferrara, NGA president and CEO, noted that the trade organization's findings highlight consumers' "increased preference for local and regional independent grocers."

NGA noted that independent grocers generate a "powerful ripple effect" through job creation, worker wages, rent, and supply chain spending.

"The economic impact of an independent grocery store can be several times its food sales," the report said.

Key Figures
1.48 million
U.S. jobs supported by independent grocers, including 1.14 million workers directly employed by them and 300,000 jobs indirectly supported through the supply chain
$191.3 billion
Value-added economic activity generated by independent grocers, covering merchandise sales, logistics, and distribution services
$27.3 billion
Total taxes generated annually by independent grocers, including $4.7 billion in federal taxes, $10.2 billion in state taxes, and $12.4 billion in local taxes

Despite significant growth, independent grocers still face immense pressure from chain competitors, which have greater scale and can offer lower prices. Omnichannel shopping, artificial intelligence, and other technologies being adopted by large players such as Walmart and Kroger are expected to make the competitive environment for independent grocers even more challenging in the coming years.

According to the press release issued Monday, NGA's results are based on store-level retail sales data across all U.S. congressional districts.