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.

Stores Face Intense Competition

Competition in the crowded retail grocery trade is intense.

Reliance On Information Systems

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


Recent Developments

Jul 14, 2026 - Kroger Shops For Giant Eagle
  • In the latest example of ongoing consolidation in the US grocery industry, Kroger has moved to acquire Giant Eagle for $1.65 billion, Supermarket News reports. The proposed acquisition of Giant Eagle by the nation’s largest traditional supermarket chain would expand Kroger’s reach into western Pennsylvania and strengthen its presence in Ohio, West Virginia, Maryland, and Indiana by adding 197 supermarkets, 11 pharmacies, and about $9 billion in annual sales. Kroger expects to combine Giant Eagle's strong regional brand, private-label products, and loyalty program with its own e-commerce, data analytics, and personalization capabilities to improve efficiency and the customer experience. The proposed merger highlights the growing scale required to compete on price, technology, and digital services. Ongoing consolidation could increase competitive pressure on regional and independent grocers, which may struggle to match the purchasing power, supply chain efficiencies, and technology investments of larger national chains.
  • Maryland has enacted the Protection From Predatory Pricing Act, making it the first state to ban grocery stores and third-party delivery services like DoorDash from using customers' personal data to set higher prices through AI-driven dynamic pricing, The New York Times reports. The law takes effect October 1, with fines of $10,000 for violations and $25,000 for repeat offenses. For the grocery industry, the law creates new compliance requirements and potential liability, though critics point out key loopholes: loyalty programs are exempt, only price increases are restricted, and enforcement rests solely with the state attorney general. Moreover, the Maryland Retailers Alliance argues the practice was already illegal under existing law. The Maryland bill comes amid increasing resistance to dynamic pricing from states across the country, with at least 33 other states having introduced similar bills.
  • Rising fuel costs from the Iran war are creating broad cost pressure for grocery stores by increasing expenses across the entire food supply chain, the President and CEO of IGA, John Ross, explained in a letter to customers posted on the company’s website. Fuel impacts farming, processing, packaging, transportation, and refrigeration, acting as a multiplier on food costs. As a result, even a 10% rise in fuel can drive 2-3% higher retail food prices, adding to existing inflation, Ross explained. Grocery stores are already seeing freight surcharges and higher supplier costs, with more significant price increases expected over time as costs flow through the system. Fuel-intensive categories like meat and dairy are most affected, but packaged goods are also rising. With thin margins, grocers face a difficult balance between passing costs to price-sensitive shoppers and protecting profitability. Consumer frustration may increase as prices rise further.
  • Producer prices for grocery stores rose 4.1% in May compared to a year ago, after rising 2.5% in the previous May-versus-May annual comparison, according to the latest US Bureau of Labor Statistics data. Producer prices for grocery stores are at record high levels amid rising procurement and labor costs. In May, the Producer Price Index for All Foods stood 23% above its reading five years ago, per the BLS. Employment by grocery stores remained flat year over year in April, while the average industry wage rose 3.9% over the same period to a new high of $18.71 per hour, BLS data show.

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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