Independent grocery stores represent more than 38% of total supermarket spending in America, yet they are struggling to compete against national chains that control access to products, pricing, and shelf space. Greg Ferrara, president and CEO of the National Grocers Association, warned that without intervention, the grocery industry could consolidate to just five or six dominant national chains, leaving consumers with fewer choices and higher prices.
Ferrara told FOX Business that independent grocers face systematic disadvantages in securing the same products and purchasing terms available to major retailers. New products are sometimes offered exclusively to large chains for extended periods, preventing local competitors from meeting customer demand. “Consumers want those products, and they want to be able to buy them at their local stores, but they can’t,” Ferrara said. “So they’re now being boxed out and forced to go to one national chain that often has it.”
The competitive imbalance threatens the survival of thousands of family-owned stores. Independent grocers operate on net profit margins of less than 2%, leaving almost no room to absorb higher costs or competitive disadvantages. Ferrara emphasized that these stores buy efficiently and in bulk. “They buy in truckloads, and they buy efficiently,” he said. “They just need the access to those products and to those items to be able to be successful.”
The Cost of Consolidation
A future dominated by a handful of national chains would harm American consumers, Ferrara argued. Greater competition in grocery retail drives prices down and gives shoppers real choices about where to shop and what to buy. Ferrara stated that independent retailers are not asking for special treatment, only the opportunity to compete on fair terms.
The Justice Department has opened investigations into grocery market concentration, expanding an antitrust probe into major meatpackers to include eight large retailers: Kroger, Publix, Walmart, Albertsons, Aldi, Ahold Delhaize, Costco, and Amazon. The DOJ is examining beef prices, profit margins, and purchasing arrangements that may be inflating consumer costs.
Ferrara acknowledged that beef prices remain elevated but said independent stores are adapting by running stronger promotions on ground beef and offering smaller package sizes. “Instead of buying a roast, they’re going to buy a smaller cut… or ground versus a steak, and they’re gonna trade down,” he said.
What Independent Grocers Need to Survive
Independent grocers are not seeking government subsidies or preferential treatment. They are asking for open markets where the most efficient competitors can succeed. Ferrara warned that without free and open markets, America risks waking up to an economy served by just five or six national chains, a concentration that would ultimately harm both communities and consumers.
Ferrara remains optimistic about the future of independent grocers if market conditions improve. He believes consumers ultimately want choice and the ability to support local retailers and regional food producers. For independent stores to survive the next generation, they need meaningful access to competitive products and pricing terms that reflect their efficiency and market scale.