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Independents in California are a Powerful Economic Engine
WASHINGTON REPORT
Independents in California are a Powerful Economic Engine
GREG FERRARA
PRESIDENT AND CEO NATIONAL GROCERS ASSOCIATION
When talking about an independent community grocer, entrepreneurship is its foremost quality.
Anyone familiar with the independent supermarket industry knows in their gut that local retailers are a driving force in the U.S. economy. Millions of people across the U.S. rely on their local independent for quality products at an affordable price. However, while we all know this to be true, it helps to have the data to back it up, whether it’s used to show lawmakers at the state and federal level the pivotal role independents have in the U.S. economy, or so that operators can use the data to adjust their business strategy. That is why NGA commissioned John Dunham & Associates to conduct an economic impact study to demonstrate the strength of independent operators in the grocery industry. The results were not surprising: Independents are at the heart of the U.S. economy, supporting more than 1 million jobs and generating billions in wages nationally. Updating the study NGA last conducted in 2012, the results showed independent grocers’ sales rose from $131 billion when the study was last conducted to $253.6 billion in 2020. This means that even in a world with more and more big-box stores, consumers still find value in their local independent grocery store. Some key takeaways from the study: • Overall, independent grocers contribute more than $255 billion to the economy, or about 1.2% of the U.S. GDP
• Independents are responsible for 1.1 million jobs earning wages approaching $39 billion
• They generate federal, state and local tax revenues surpassing $36 billion • Their sales account for 33% of total U.S. grocery sales, up from 25% a decade ago But what about in California, where there are 2,701 independent grocery stores? The study revealed that independent grocers: • Account of 1.2% of the state’s GDP
• Generate $15.1 billion in wages • Are responsible for 274,600 of the Golden
State’s total jobs • Have a total economic impact of 38.1 billion
• Contribute $3.2 billion in federal tax and $3.1 billion in state tax revenues
Much like the data nationally, independent grocers in California are a driving force in the economy. Even with all the challenges faced during the Covid-19 pandemic – increased demand, government regulations and a labor shortage – independent grocers have persevered, innovating whenever necessary to continue serving their communities. The study also found e-commerce has driven sales as independent grocers have invested more in their online shopping platforms, which gave independents an edge during the pandemic of the past year-plus. Online grocery sales grew 54% in 2020 to nearly $96 billion, driving it to a 12% share of total U.S. e-commerce sales and 7.4% of all grocery sales (Insider Intelligence, emarketer.com/ content/2021-online-grocery-sales-willsurpass-100-billion)
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Sales growth in the fresh perimeter of grocery stores – including meat, baked goods and prepared foods – has driven greater demand for skilled workers such as butchers, bakers and chefs. As demand for these and other fresh products continues to be strong, opportunities abound for career pathways in independent grocery. There’s also significant power behind grocery’s efforts to help the food insecure. In 2020, the Supplemental Nutrition Assistance Program, which helps lowincome families afford more healthy foods, was responsible for nearly 200,000 U.S. grocery industry jobs earning wages totaling more than $6.7 billion. Additionally, SNAP drove job growth of nearly 45,000 jobs in supporting industries, including agriculture, manufacturing, transportation and municipal services. SNAP also was responsible for 2020 federal tax receipts in excess of $1 billion, as well as state and local taxes topping $975 million. It’s further proof that independent community grocers are crucial to feeding the nation’s pocketbooks as well as its bellies. For more information on this study, visit grocersimpactamerica.com. ■
Between the farm and your store’s shelves is hard work.
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Day in and day out, in the midst of the challenges so many families are facing during this pandemic, our team members go above and beyond to help maintain a healthy and stable food supply for tens of millions of Americans. That’s why we’ve put in place a host of safeguards and measures at all our facilities to protect them. Now, as always, their safety is our top priority.
