The National Grocers Association (NGA) has released the results of a study on the impact of independent grocers on America’s economy. This groundbreaking research provides a clear picture of the key role independent grocers play at the national, state, and congressional district level.
“Since I started working for NGA in 2010, one of the most common questions I have been asked is, ‘How big is the independent grocery channel?’ Unfortunately, I have not had reliable numbers to answer that question—until now,” said Peter J. Larkin, president & CEO, National Grocers Association. “The report we are releasing today provides key metrics for the direct and indirect economic contributions of independent grocers and wholesalers including number of stores, sales, jobs, wages, and taxes. Those of us who are close to the business are not surprised by the significant impact our sector of the industry has on the nation’s economy. Now we can showcase our contributions in a more meaningful, factual way.” The study also measures the indirect impact and ripple effect of the independent channel on other industries.
Significant takeaways of the report include:
20,884 stores are operated by independent supermarket companies in every congressional district of the United States.
Independent grocers are responsible for $129.5 billion in annual sales.
Independent grocers employ 944,200 people, and pay more than $30 billion in wages each year.
An additional 569,380 jobs are created through re-spending of those wages or companies that support the supermarket industry.
Independent supermarkets and their employees contribute $13.25 billion in taxes to the federal government, which is 1.73% of the total taxes collected at the federal level.
An additional $13.98 billion in taxes are paid by the industry at the state and local level.
In total, independent grocers account for close to 1% of the total US economy, as determined by GDP.
Joseph Sheridan, president & COO of Wakefern Food Corporation and NGA chairman, said, “Independents are the true entrepreneurs of the grocery industry. But beyond that, we strive to enhance the communities we serve, and seeing the numbers in black and white shows just how impactful those efforts are.”
NGA will use the study to spread the message that independent grocers are an important part of our nation’s economy and that their issues should be heard. View full results of the study including national, state, and congressional district results at www.GrocersImpactAmerican.com. The research was conducted by John Dunham and Associates (www.guerrillaeconomics.com), an economic and government relations research firm based out of New York.