The economic impact of independent grocers?

The Lempert Report
May 31, 2013

Successful independent grocers are nimble, innovative and able to keep share away from larger chain competitors.

Successful independent grocers are nimble, innovative and able to keep share away from larger chain competitors. Now for the first time, the National Grocers Association (NGA) can quantify the economic impact of these independents. A new study conducted for NGA by John Dunham and Associates provides key metrics on store counts, sales, jobs, wages and taxes. For example: • 20,884 independent supermarkets nationwide generate $129.5 billion in annual sales. • 944,200 employees in these stores earn more than $30 billion in yearly wages. • There’s a ripple effect when employees of independent supermarkets and the suppliers that provide them spend their wages—and it generates an additional 569,380 jobs. • Independent grocers and their workers’ pay $13.25 billion in annual federal taxes—1.73% of all federal tax revenues. • The industry pays another $13.98 billion in state and local taxes. In collecting this kind of data, we can assemble a more meaningful story about the importance of independent retailers. We at The Lempert Report believe this kind of data further suggests the grassroots support that exists for independents. Consumers often prefer to shop at locally owned businesses rather than distantly headquartered chains to support their communities. This NGA study, in our view, documents the benefits of such unity.