In the latest stats (USA and Can combined as of Feb 11 /18), based on the soon-to-be-released 2018 Independent Grocers Financial Survey conducted, while sales were down, EBIDTA was much stronger, indicating that independents are still cash flowing. Sales have remained subdued despite a stronger 2017 economy while the labour market is tightening, driving up labour and benefit costs.
GET YOUR COPY OF THE FMS FINANCIAL SURVEY email: Mike Sharpe at elsharpedo@gmail.com
Among the TOP 5 things independents said impacted their business (scale of 1-10):
1. Competition from physical retailers 8.28 2. Staffing, hiring and retention 7.34 3. Healthcare costs/compliance 7.24 4. Local & national economy 6.84 5. Local, state and federal government regulations 6.79
Competitive pressure ranked 1-6 (average)
1.Conventional supermarkets (5.9)
2.Supercenters (5.8)
3.Dollar stores (4.2)
4.Hard discounters (Aldi, Lidl) (3.7)
5.Online retailers (Amazon, Jet, etc.) (3.1)
6.Other (gourmet, drug, etc.) (2.9)
Source: FMS’ 2018 Independent Grocers Financial Survey
Going forward leading in the Grocery Innovations Canada show this fall, there will be a variety of sessions addressing some of the above issues. Be sure to book early as the hotel rooms go quickly during our Grocery week of activities.
BOOK HOTEL – WESTIN TORONTO AIRPORT HOTEL (rates end Sept. 22/18)
GroceryInnovations.com
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