NGA/FMS Release 2010 Independent Grocers Survey

The 2010 FMS/NGA Independent Grocers Survey results are in!  Retailers weathered the last year netting a 1.68 percent net profit before taxes.  While this was down from a 1.88 percent profit for last year’s respondents, it was a solid showing considering the current economic environment.  Retailers were faced with a value based shopper and stronger than ever price competition.  While the averages were strong considering the economic environment, the top 25 percent of performers reported an impressive 4.10 percent net profit before taxes. 


*Companies include: Kroger, Safeway, Delhaize, A&P/Pathmark, Ahold, Spartan, SuperValu, Weiss, and Publix

The decline from last year’s profits is mainly attributable to reduced gross margins.  Last year’s total gross margins for respondents were 26.94 percent with the 2010 survey reporting a 26.28 percent.  Retailers made up some of these losses with reduced expenses in categories such as supplies, labor & Benefits, and advertising.

According to Robert Graybill, President of FMS, “Independent retailers showed just how agile and skilled their companies are by performing so strongly in the height of the recession.  While the profit numbers dropped 20 basis points, it is amazing to see their ability to compete against the big box retailers with such a price sensitive consumer base.”

Some underlying concerns that survey respondents shared was the lack of ability to obtain capital for improvements and growth.  Forty-one percent of respondents were impacted by the lack of available capital through 2009.  In addition, 12 percent of respondents plan to layoff in the 2010 year with only 13 percent of respondents feeling as if the government stimulus helped speed the recovery.

The FMS/NGA Independent Grocers Survey measured results from the 2010 fiscal year and is available for retailers at www.fmssolutions.com . 

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