Grocery Stores NAICS 445110

        Grocery Stores

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Purchase Report

Industry Summary

The 38,500 grocery store firms in the US sell non-perishable dry foods and an extensive array of perishable products; including meat, produce, dairy, bakery, frozen, and several specialty food related products or services. Grocery retail is a low margin, high volume business. The industry is concentrated, as the largest 50 firms account for 75% of industry sales.

Reliance On Information Systems

Grocery retailers depend on large, complex information technology systems to manage their business operations.

Stores Face Intense Competition

Competition in the crowded retail grocery trade is intense.


Recent Developments

Dec 14, 2025 - Publicly-Funded Supermarkets
  • Joining a growing number of cities testing publicly funded options for affordable fresh food in areas private grocers have shunned, the Azalea Fresh Market opened in Atlanta this summer, The Wall Street Journal reported in November. After years of trying to lure major chain grocery stores to downtown Atlanta, the city contributed $8 million in cash, grants, and loans to open the 20,000-square-foot store. According to WSJ, the city’s goal is for the store to become profitable without any government subsidy within three years. With the same funding, Atlanta is already aiding the construction of a second planned store 6 miles away, expected to open in 2026. New York City’s mayor-elect Zohran Mamdani campaigned on opening publicly funded grocery stores. Mamdani’s goal is for the city-backed stores to undercut competitors on price by allowing them to operate free of rent and property taxes at city-owned sites.
  • President Trump has ordered a federal investigation into US food-related industries and foreign-controlled companies for potential price fixing as his administration faces pressure to address rising grocery costs, Grocery Dive reported in December. The Trump administration has directed the Justice Department and Federal Trade Commission to probe meat processors, seed and fertilizer suppliers, and equipment companies, especially those with foreign ownership. The investigation into anti‑competitive behavior in the food supply chain could impact supply chain stability and pricing. Near term, suppliers, notably major meatpackers, will face heightened scrutiny and potential disruptions to their operations that could affect product availability and pricing. Grocers could also face new compliance expectations as the government increases oversight of food supply chains. However, if investigators uncover and curb anti‑competitive practices, retailers could eventually see lower wholesale prices, particularly for beef, where costs have hit record highs.
  • Online grocery sales totaled $11.6 billion in October, a 10.5% increase over the previous year, according to the Brick Meets Click Grocery Shopper Survey. October’s moderate growth rate compared to the 2024 surge was the result of an expanding base of monthly active users (MAUs), tempered by anemic gains in order frequency, and pullback in average order values (AOV). The overall base of e-grocery MAUs grew almost 13% year-over-year to end October 2025 with 83.3 million households, surpassing the previous high set in September. But order frequency in large metro markets declined vs. last year, limiting overall growth. By age group, only the 60-plus-year-old households increased e-grocery ordering activity for October 2025 vs. 2024; order frequency per MAU declined YoY across all the younger age groups. Meanwhile, ship-to-home’s AOV rose approximately 5% during the month compared to a year ago.
  • Grocery shoppers in Florida have mixed reactions to Publix’s announcement that it will now allow customers to openly carry firearms inside its more than 900 Florida stores, CBS News reported in October. The announcement followed a ruling by Florida’s First District Court of Appeal that overturned the state’s ban on open carry on constitutional grounds. While some customers said they support Publix’s decision, others expressed safety concerns. Grocery stores are considered private businesses, so they have a choice to allow, or not, weapons inside their stores. In a statement, Publix said it was following the law. Rival Winn-Dixie said it would not allow open carry in their 355 Florida stores, while Walmart does not prohibit the open carry of firearms, but asks customers to refrain from such activity, according to Supermarket News.

Industry Revenue

Grocery Stores


Industry Structure

Industry size & Structure

The average grocery store employs 68 workers and generates over $21.1 million in annual revenue.

    • The retail grocery business is a highly competitive, diversified industry with about 38,500 firms employing 2.6 million workers and annual sales of $812.7 billion.
    • The grocery store industry is concentrated, as the largest 50 firms operate over 18,575 stores and account for 75% of industry sales.
    • The average store is 48,000 square feet, but large supercenters can exceed 180,000 square feet.
    • On average, a grocery store carries about 31,530 items, or Stock Keeping Units (SKUs).
    • The median store sales are about $596,000 per week (about $29.1 million per year).
    • The average US household spends more than $6,000 on groceries per year, or over $500 per month, according to the US Bureau of Labor Statistics.

                                  Industry Forecast

                                  Industry Forecast
                                  Grocery Stores Industry Growth
                                  Source: Vertical IQ and Inforum

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