Canadian Independent Grocers Financial Survey Released
Canadian Independents Feel the Squeeze of Down Economy and High Inflation
FMS Financial Management Systems LTD and The Canadian Federation of Independent Grocers (CFIG) released the results of the 2016 Canadian Independent Grocers Financial Survey, the second year in which FMS and CFIG have collaborated on a study examining the financial performance of independent grocers in Canada. The survey covers the 2015 fiscal year and compares all major findings to the results of polled US grocers.
Canadian independents were able to increase same store sales in 2015 by 4.8 percent over 2014 and kept expenses much lower than their US counterparts. Margins dipped slightly, but retailers were able to largely maintain the levels they achieved in 2014. Net profits, however, were much lower in 2015. Whereas Canadians posted a very strong 2.7 percent increase in net profits in 2014, retailers posted just a 0.88 percent increase in 2015. In addition to the lower margins, Canadian independents faced high inflation of food purchased from stores, which largely contributed to the fall in net profits.
"The Canadian Federation of Independent Grocers is pleased to partner once again with FMS Solutions to provide much needed insights to Canada's independent grocery channel," said CFIG President and CEO Thomas Barlow. I want to personally thank all the retailers who took the time out of their busy schedules to fill out the survey. The ability to use facts to make short and long term decisions is a great competitive weapon."
Slow economic growth in Canada caused independents to list the economy as their top concern for their business in 2015, supplanting the top concern in 2014: competition from other retailers.
The full results can be purchased here: https://marketplace.mimeo.com/2016fmscfigsurvey
About FMS: FMS Financial Management Systems, LTD (www.fmssolutions.ca) provides independent retail grocery and independent supermarket operations with financial, accountin,g and consulting services such as industry benchmarking, best practices and mission-critical decision support. The parent company FMS Solutions Holdings LLC and its subsidiaries provide services to over 3500 retailers in Canada, The United States, and the Caribbean. FMS is proud to be an associate member of CFIG and a Distribution Canada, Inc. supplier of record.
About CFIG: The Canadian Federation of Independent Grocers (www.cfig.ca) is a non-profit trade association founded in 1962 which continues to be a collaborative community, equipping and enabling independent, franchised and specialty grocers for sustainable success. We act as a strong and united voice for over 4,000 independent grocery retailers, across Canada, providing programs for operational excellence and fostering solid relationships among retailers and suppliers.