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

Oct 14, 2025 - Publix to Allow Open Carry in Stores
  • 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.
  • Retail price inflation and economic concerns are having an impact on sales of natural and organic products, according to a recent survey of retailers conducted by Supermarket News. A majority of retailers (61%) surveyed reported their sales of natural and organic products increased during the past 12 months, including about 23% who said sales were up significantly. However, nearly a third (31%) reported natural and organic sales were flat, while 8% said sales were down compared with the preceding 12-month period. Among those who reported natural and organic sales gains, 59% credited the resilience of the natural/organic consumer, who tends to skew higher on income. Looking ahead, 11% of retailers said they expect sales of natural/organic products to decline slightly over the next 12 months, although none said they expect significant declines.
  • Two-thirds of grocery retailers are looking to ramp up their technology investments this year, according to Progressive Grocer’s 2025 Grocery Tech Trends Study published in August. The 10th annual study found their investments appear to be in sync with what shoppers want – better deals, more convenience, and fewer hassles, both in store and online. Top priorities among currently implemented technology include: digital loyalty program/app (29%); data analytics platform/reporting tools (26%); digital security tech (13%); online grocery ordering for delivery (13%); anti-theft tech (12%); retail media network (11%); and workforce tech (10%). Priorities for “plan to add” tech include: electronic shelf labels (25%); workforce tech (14%); AI/ machine-learning solutions (14%); store inventory management automation (13%); in-store QR codes (13%); smart labeling (11%); and mobile devices/tablets for in-store managers (11%). About 25% of retailers surveyed expect to spend “somewhat more” on technology and automation in 2025.
  • Shoppers at Whole Foods Market and other grocery stores encountered sparsely-stocked and empty shelves following a cyberattack on distributor United Natural Foods (UNFI) in June, The Wall Street Journal reports. The cyberattack cut into sales over several days as Whole Foods and UNFI’s other retail customers weren’t able to place orders through regular digital channels leaving many grocery store shelves bare, according to WSJ. The incident exposed the food supply chain’s vulnerability to cyberattacks, with some retailers unable to place orders with the distributor and UNFI unable to order from food companies. Retailers heavily dependent on a primary distributor are especially vulnerable to supply disruptions from cyberattacks and must rely on manual processes or scramble to find backup suppliers during outages. Whole Foods’ contract with UNFI requires it to maintain cyber insurance and a business-continuity plan that's tested regularly, with written results provided to Whole Foods.

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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