NGA Releases Results of Independent Grocers Economic Impact Study

Apr 23, 2013

NGA Releases Results of Independent Grocers Economic Impact Study

Results to be shared on Capitol Hill and at www.grocersimpactamerica.com

 

Arlington, VA - The National Grocers Association (NGA) today released the results of astudy 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 and canb e accessed via a new website, www.grocersimpactamerica.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. The report provides information independent grocers and wholesalers sales, jobs created, wages paid, and federal and state taxes paid. The study also measures the indirect impact and ripple effect of the independent channel on other industries. 

"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."

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 over $30 billion in wages each year.
  • An additional 569,380 jobs are created through re-spending of those wages or companies which 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.

"These results are astounding, but not surprising," said Joseph Sheridan, President & COO, Wakefern Food Corporation and NGA Chairman. "Independents are the true 'entrepreneurs' of the grocery industry. But beyond that we strive to enhance the communities that we serve, and seeing the numbers in black and white shows just how impactful those efforts are."

Results of the study will be shared at a press conference and reception this afternoon in the House Agriculture Committee Room on Capitol Hill. Speakers will include Peter J. Larkin, President & CEO, NGA; Joseph Sheridan, President & COO, Wakefern Food Corporation and NGA Chairman; The Honorable Rodney Davis (R-IL), and Nate Filler, President & CEO, Ohio Grocers Association.

NGA will use the study to spread the message to suppliers, partners in the industry, and on Capitol Hill that independent grocers are an important part of our nation's economy and that their issues should be heard.

NGA thanks Mondelēz International, The Shelby Report, NGA's Grocers Research & Education Foundation, and Nielsen for their support of this study.

"Mondelēz International is extremely excited to play a small role in this momentous accomplishment by the National Grocers Association," said Rick Brindle, Vice President, Industry Development for Mondelēz International. "For generations, we have witnessed and supported the significant role that the Independent grocer plays within their marketplace communities.

To view the full results of the study, including national, state, and congressional district results as well as methodology, visit www.GrocersImpactAmerica.com






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