2013 Independent Grocers Financial Survey

The National Grocers Association (NGA) has released its 2013 Independent Grocers Financial Survey, saying that “independent grocers capitalized on the improvements in the economy and posted an average net profit before taxes of 1.65 percent in fiscal year 2012, up from 1.12 percent in 2011. They also grew inflation-adjusted same-store sales and improved gross margins across key store categories. As unemployment, consumer confidence and other key economic indicators improved, so did the financial results of independent grocers.”  Some key findings:

• Fiscal year 2012 same store sales were +1.46 percent before adjusted for inflation. Inflation-adjusted same-store sales were +0.2 percent, up from -2.2 percent in 2011. Fewer independent grocers reported sales gains below the rate of inflation at 49.2 percent versus 72.7 percent in 2011.”
• “Many retailers improved margins in key categories leading to a slight increase in the total store margin to 26.48 percent.”
• “The net profit for all companies increased to 1.65 percent from 1.12 percent in 2011.  Additionally, only 1.9 percent of companies reported negative profit numbers versus 13.5 percent in 2011.”
• “On the cost side, healthcare costs continued to increase at a rate of 7.6 percent in 2012, with 81.8 percent of retailers expecting higher costs in 2013. With lower energy prices, utility costs did come down as a percentage of sales, as did rent expenses.”