The National Grocers Association (NGA) and FMS released the results of their joint 2013 Independent Grocers Financial Survey. Showing their resilience and business savvy, 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.
“Fiscal year 2012 was quite the comeback year for independent food retailers,” says Peter Larkin, President & CEO, NGA. “We found vast improvements in financial performance, much higher levels of store development, stabilized payroll and lower levels of theft-related shrink for the majority of respondents.”
Independent grocers pushed through one of the worst economic downturns in our nation’s history and are coming out better and stronger. The report reviews the top 25th percentile in net profits, the “profit leaders,” that once again showed a strong performance with an average net profit of 4.01 percent through superior expense control, margins and sales.
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