2025 Independent Grocers Financial Study Just Released!
Sponsored by Canary Hiring Technologies
In a year marked by economic uncertainty, shifting consumer habits, and mounting cost pressures, independent grocers once again proved why they’re the heartbeat of local communities. The 2025 Independent Grocers Financial Study, released by NGA and FMS Solutions, offers an in-depth look at how these businesses are adapting—and where there’s room to grow.
Canary is proud to have sponsored this year’s study, which reinforces a message we share with our grocery clients every day: you don’t have to choose between operational efficiency and employee care—you can have both.
Here are a few standout insights from the report:
📉 Turnover Remains a Major Cost Driver
With part-time turnover hitting 40.7% overall (and even higher for multi-store operators), grocers are struggling to retain talent in an increasingly competitive labor market.
💰 Labor and Benefits Continue to Rise
Labor costs now account for 16.3% of net sales, the highest on record—underscoring the urgent need for grocers to maximize every dollar invested in their workforce.
🛒 Sales Growth Driven by Multi-Store Operators
While overall sales grew modestly (1.3%), single-store operators saw a decline, while larger grocers pulled ahead—highlighting the benefits of scale, tech adoption, and operational optimization.
💻 Digital Still Underutilized
Only 1% of sales came from e-commerce—but with basket sizes averaging over 3x higher online, there’s opportunity for grocers ready to invest in digital channels and tools.
🔎 Margins Are Holding, but Expenses Are Climbing
Margins remained steady at 27.4%, but expenses reached 25.8% of sales. That razor-thin gap makes tax credits, automation, and operational insights more valuable than ever.
At Canary, we help independent grocers capture hidden financial wins—whether through hiring tax credits, smarter onboarding, or retention tools that lower churn and save real money. This study highlights exactly why those tools matter.
We’re grateful to support the incredible teams at FMS and NGA who continue to amplify the voice of independent retailers. This year’s study is a must-read for anyone in the grocery industry looking to stay competitive in a margin-squeezed market.
👉 Explore how Canary helps grocers do more with every hire: canaryai.com
