How grocers are staying laser-focused amid a challenging business environment

Grocers are improving supplier relationships, increasing theft mitigation tech and boosting their private brands to future-proof their operations, writes Leslie G. Sarasin of FMI – The Food Industry Association.

What happened

Leslie G. Sarasin is the president and CEO of FMI — The Food Industry Association, a trade association advocating for a safer, healthier and more efficient consumer food supply chain.

Environmental considerations. Cultural shifts. Government oversight. Changing societal expectations. These are just some of the many challenges grocers have faced in recent years.

Why it matters

But food retailers and suppliers have proven resilient, agile and experienced in adapting new strategies to continue moving forward while keeping an eye on efficiency. They are proving flexible in addressing issues to future-proof operations, adjusting to the changing business terrain and remaining committed to connecting consumers with the food products they love, need and want.

For many businesses, the current economic environment contains a level of uncertainty. Retailers and suppliers say top challenges facing the industry include the economy, trade policy, the supply chain and theft. These concerns have an amplified impact on the industry’s bottom line as retailer profit margins remain small. In 2024, food retailers reported a profit margin of just 1.7%. Although this is on par with 2023, this is the industry’s lowest profit margin since 2019.

In response, retailers are focusing on improving cost controls and eliminating unnecessary expenses. The industry as a whole is focusing on supply chain investments, value strategies for shoppers, mitigation tactics and strong trading partner collaborations to ensure a sustained grocery business for years to come

This news brief is based on reporting published by Grocery Dive on 2025-08-20. The original report is linked below.