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Grocery Stores

A brief history, description and helpful information about owning an independent Grocery Store or Grocery Store Franchise


The U.S. Grocery Store or food retail industry is defined as a store engaged in retailing a general range of food products. The grocery stores industry forms foods (fresh or packaged) sold at grocery stores, mass merchandisers, drug stores, convenience stores, and foodservice facilities. For example, Walmart, Kroger, and Walgreens are some of the renowned market players in the food retail industry in the United States.

Status-Quo of today’s Grocery Stores Industry in U.S.

Today's grocery stores industry is reeling under some disturbing problems. They are; increasing costs, decreasing productivity, and race-to-the-bottom pricing. They cause profitability and growth of the industry to go downhill. And no doubt, they also factor a huge decline in the economic value of grocery retails.

Today's grocery stores have an existential crisis due to online and non-grocery channels. These market players are disrupting the industry by risking over $1 trillion in earnings. If it ever happens, the endgame to half of the traditional grocery retailers is certain. The grocery store industry is never immune to changes that happen in the market.

From consumer behavioral changes to intensifying competition, they are bound to occur. And the grocers ill-equipped to identify such changes get caught off the guard. And those who turned such changes into advantages survived and thrived.

Grocery Store financing for independent Grocery Stores

Today’s independent grocery stores struggle with an existential crisis in the presence of larger establishments relatively more famous and well-established in the U.S. grocery industry market.

To retain grocery ownership is a big challenge in a time when opportunities to seek working capital are mired with a variety of regulations imposed by financing institutions across the country. Most of the lenders condescendingly decline loan applications of the borrowers with low credit scores and poor financial condition of their business.

Grocery stores are in high demand, but they are still a low-margin business whose success relies on some key components. As a business owner, you will make money by selling bulk items compared to selling some expensive items with a large profit margin. The beauty of grocery store financing is that it enables you handle ups and down of running your grocery business.

The uses of Grocery Store Financing:
  • Upgrade older equipment, like freezers, checkout counters, and others.
  • Expand your business on another location.
  • Fund additional marketing costs to drive more footfalls to your store.
  • Buy fixed assets such as equipment, machinery.
  • Boost your working capital.
  • Refinance an existing debt.

Size & revenue strength of U.S. Grocery Stores Industry

In 2019, the foodservice and food retailing industries supplied around $1.79 trillion worth of food. Out of which, the food service facilities alone made close to $978.2 billion worth of supplies. In 2020, the growth of the foodservice and food retailing industries was projected to go higher. However, it encountered a steep decline of nearly 16.9 percent because of the COVID-19 pandemic and the mobility restrictions it caused. As a result, various commercial foodservice establishments faced a recession.

The market size of the supermarkets and grocery stores industry, based on revenue measures, is $758.5bn as of 2021. And it is expected to jump by 2.3% in the future. Moreover, the average industrial growth of these sectors between 2016 and 2021 was 3.1% per year. What affects the growth of this industry is intensifying competition and the national unemployment rate. On a positive note, the revenue growth of supermarket food sales which was around 447 billion U.S. dollars in 2018 accounted for about 60 percent of the country’s retail grocery market.

In a nutshell –
  • There are 42,505 Supermarkets & Grocery Stores businesses in the US as of 2021.
  • In 2018, the total number of supermarkets in the United States were 38,307, and 40,671 in 2019.
  • The market size of the supermarkets and grocery stores industry, based on revenue measures, is $758.5bn in 2021.
  • The number of people employed the Supermarkets & Grocery Stores industry are 2,898,770 in the US as of 2021.
  • The retail and food services sales amounted to 6.2 trillion U.S. dollars in 2019.

History of Grocery Store Industry

How did it start?

The beginning of chain grocery retailing in the United States started around the twentieth century. This was the time when the market had the presence of regional players, including the Great Atlantic and Pacific Tea Company. Grocery stores of the bygone era used to be small, say within a thousand square feet, and dealt-in non-perishable items. They were dealers trading in comestible dry goods, like sugar, spices, peppers, etc. They were called "grossier" – a French word for wholesaler because they stocked items in bulk.

The advent of self-service chain
Piggly Wiggly

Piggly Wiggly was the first semblance of today’s supermarket in the U.S. It was founded in Memphis, Tennessee in 1916 by the late entrepreneur Clarence Saunders. The supermarket chain is credited with pioneering self-service shopping in America, even though there were some major players around the country, namely Alpha Beta in Southern California. They were also trying their best to bring forth the idea of self-serving supermarket about the same time, but it was Piggly Wiggly that stole the limelight.

Before Piggly Wiggly, customers had to go through a different kind of shopping experience. For example, clerks at the store counter received grocery lists from the consumers who then had to wait for some times to collect and bag up the goods.

In those days, the stores stocked dry goods and grains as predominant items available for purchase. Items, such as butchered meats and dairy products were sold in different stores for decades. Even though Piggly Wiggly was a radical concept store of Clarence Saunders, it, however, led the way of novelties, like baskets, aisles and checkout lanes that are synonymized today’s grocery shopping experience.

The chain store explosions

By 1920, the American food retailing came under the dominance of chain stores, with small regional players like Kroger, American Stores, National Tea, Loblaws, and Dominion Stores. They kept spreading their territorial dominance and started to make a nationwide prominence. Founded in 1859, the Great Atlantic & Pacific Tea Company was one of the most successful grocery store chains in the United States and Canada. In 1920s, combination stores selling perishable items were developed. The co-founder of Merrill Lynch, Charles Merrill arranged the merger of a grocery store called Skaggs Cash Stores. The business operations of the grocery stores were in Northern California and the northwestern United States. The interesting part of grocery store coming out in those times was merger-based growth, a common practice in the late 1920s and 1930s which caused several attempts to tax the grocery stores out of business.

The Supermarket

It is difficult to say when supermarket came out in the United States, even though some players like King Kullen and Ralphs of California and Weingarten's and Henke & Pillot claimed that they had pioneered supermarkets in the country. Later the Food Marketing Institute in collaboration with the Smithsonian Institution defined supermarket based on attributes, like self-service, isolated product departments, discount pricing, marketing and volume selling. According to them, Michael J. Cullen, the former Kroger employee, opened the first true supermarket chain called King Kullen in the United States, on August, 1930, inside a garage of a 6,000-square-foot (560 m2) in Jamaica, Queens in New York City. By 1936, the supermarket chain branched out seventeen stores. No doubt, Piggly Wiggly’s Clarence Saunders is credited with having introduced self-service, uniform stores and countrywide marketing. However, Michael J. Cullen had applied some tweaks to the idea of Saunders and added separate food departments, a parking lot and maintained selling bulk food items at discount prices.

The Supermarket

The idea of Cullen was emulated by some other established American grocery stores in the 1930s, including Kroger and Safeway Inc. It was the time when the Great Depression eclipsed the economy condition of the country, thereby forcing consumers to become price-sensitive at an unprecedented level. After World War II, the growth of supermarket across the United States corresponded to automobile ownership and suburban development. North American’s suburban strip shopping centers have maximum number of supermarkets that are regional in their company branding. The supermarket chain, Kroger is said to be the most ubiquitous personality in the U.S. that has also kept most of its regional brands, including Ralphs, City Market, King Soopers, Fry's, Smith's, and QFC. The supermarket we know today was initially a phenomenon of independent and small regional chains until their counterparts became popular brought on refinement to the concept of supermarket by introducing a certain degree of advancement better than the Spartan Stores of the early 1930s.

Today’s market that is divided into different segments is the result of discounting movement as amplified in the era of 1980s. There was a gradual disappearance of middle chains as the mainline chains grew upscaling while low-end stores adopted a warehouse model that was precisely an evocation of the supermarkets in early 1930s.

Numerous grocery chains operated under different business names, say for example, A&P brands and Edwards and Finast. This trend got momentum after superstores remerged featuring general merchandise and groceries under one roof. The other trend that was catching up in that time was mergers and leveraged buyouts. They affected nearly most major grocery chains. For instance, Safeway privatized itself to avoid hostile takeout in 1987 which resulted in losing great deal of its geographical reach. The same reason was with Kroger which slimmed down in 1988. In the year 1992, American grocery company, Albertsons expanded heavily and bought American Stores (formerly Skaggs Drugs Cos.). Two years later, it acquired four stores from San Diego County chain and Big Bear Stores.

Status Of Grocery Stores in U.S. – Pandemic and Consumer Behavior Shift

The COVID-19 pandemic has caused an unprecedented damage to grocery retailers across the United States. It also caused a dramatic and rapid shift in consumer behaviors. They prompted grocers to prepare for what lies ahead, such as understanding a new industry baseline and the nuances of key consumer shifts observed over the past year. The initial lockdown imposed on March and April 2020 caused suspension of all nonessential businesses. As a result, consumers chose to consider proximity, store cleanliness, safety, health and other factors, including price, service, and in-store experience.

As long as the pandemic continues, consumers will consider affordable options and availability of the products in stock and other options that would make their shopping experience convenient.

Fun Facts – U.S. Grocery Stores

The grocery stores are always important for the communities they serve. Since everybody eats, there is no denying the fact that grocery stores in the United States are catching up because of featuring some great benefits, such as convenient location, availability of items, value, quality of products, and cleanliness.

Fascinating Facts - Grocery Stores Industry in The United States

  • 64% of the U.S. consumers have done grocery shopping online.
  • The size of the US grocery market is valued around $758.5 billion, as of 2021.
  • Grocery stores experience major footfalls during Saturday.
  • Top grocery stores in the United States have generated more than 48% of 2020 sales.
  • Walmart, Kroger, Costco, H.E. Butt Grocery, Publiz Super Markets, Meijer, Aldi and Whole Foods, Albertsons, Ahold Delhaize, and Wakefern Food are some of the top supermarket chains in terms of sales.
  • Online grocery stores in the country are expected to reach $187.7 billion by 2024.
  • People happen to spend around $40 more when doing grocery shopping online.
  • The AI-based voice assistance accounts for 39%
  • The average age of most grocery shoppers in the U.S. is 44 years old.
  • Shoppers spend around 25% of their shopping money on processed foods and sweets. However, they purchase only locally grown food, something showing their regard to national agriculture.
  • 83% of shoppers choose traditional supermarkets over warehouse clubs, gourmet grocers and drugstores.
  • On average, around $121.50 of grocery shopping money is spent by multi-person households.
  • Independent grocers account for 33% of entire grocery sales in the U.S.
  • The sales of independent supermarket sector went up to $253.61 billion in 2020, almost 94% of jump from $131 billion in 2012.
  • According to NGA’s study, around 860,000 jobs are created across the industries, directly or indirectly by independent groceries. Some of these industries are – manufacturing, agriculture, wholesaling, construction, retailing, and transportation, among others.

Industry updates – What’s cooking in the Grocery Store Industry?

Amazon Go Grocery’s “Just Walk Out”

The role of technology has been a growth engine to industrial development, and grocery store is not unaffected by such technological innovation. The latest development known as cashierless technology is gaining ground and is said to make grocery shopping far more convenient and seamless for the shoppers.

Amazon Grocery Logo

Why cashierless stores are a growing trend can be attributed to Amazon’s cashierless Just Walk Out technology. The new 25,000 square foot Amazon Fresh store in Bellevue, Washington, marks a milestone for the company as it is scaling up the technology to handle larger stores through a series of overhead cameras and pressure-sensitive shelves. They will automatically detect what shoppers put in their carts and can scale up to stores, irrespective of size.

Amazon Go Grocery has become the only grocery chain that has brought on something interesting like Just Walk Out Shopping, in which grocery shoppers visit the store, take what they want, and walk out. The absence of standing in line, scanning items, or paying for your purchase at the cashier counter sums up the beauty and uniqueness of cashier-less technology of Amazon.

According to Amazon, customers who arrive at the new store (in Bellevue, Washington) will be prompted to pick a checkout option. It doesn’t mean that the traditional checkouts will not be there for them to use. If they choose to use Just Walk Out option, all they have to do is scan a QR code in the Amazon App, insert a linked credit or debit card, or scan their palm to enter the store. During exit, the items customers purchased are billed automatically in their virtual cart, and a digital receipt is sent to the them.

Will Just Walk Out restrict the crime associated with shoplifting? For Amazon, it doesn’t concern itself much with customers if they accidentally shoplift from its cashierless store. The company is ruling out any possibility of mistrusting its unique instant checkout system.

Kroger’s New Drone Delivery Pilot

Kroger has reportedly green-lit a new drone delivery pilot by autonomous drones, to provide customers with on-the-spot service. The retail giant has partnered with Drone Express, a division of TELEGRID Technologies, to deliver products to any location; and on the spot, like delivering picnic supplies to a park, or condiments to a backyard cookout.

Kroger - Fresh for Everyone

The location where the package is supposed to be delivered is synced with the smartphone of the customers, allowing them to book package via a smartphone and get the delivery where they are. In addition, the new drone delivery pilot that Kroger launched is believed to be a part of the evolution of today’s fastest-growing and innovative e-commerce business.

The growth of Omnichannel Model

Popular online retailers like Amazon have noticed a sharp rise in demand for home delivery, certainly an opportunity to make a great deal of money. The windfall for online retailers due to the rise in demand for home delivery has led brick-and-mortar grocers grow cautious and race to build out their own delivery channels while making an effort to control the expensive door-to-door service that already puts so much strains on the restaurant business.

Grocery chain that operate business both online and offline are developing resources into omnichannel platform that can help them to capitalize on their physical footprint and online presence. Basically, they are implementing a model called BOPIS (buy online pickup in store). It allows customers to purchase online and pick up their order in-store. The customer can find the option for choosing BOPIS in additional shipping options during online checkout.

In addition, Amazon-owned Whole Foods Market has also converted its stores based in New York, Chicago and other cities to delivery-specific service. Albertsons, the second-largest grocery chain in the U.S. is testing temperature-controlled smart lockers in some stores so that customers can easily shop perishable items online. A supermarket chain in the Midwestern United States, Hy-Vee, is remodeling its stores and parking lots to fulfill the rising demands of BOPIS.

Micro-Fulfillment Centers to Future-Proof Supply Chains

The Covid-19 pandemic and its quick fallout has augmented badly the vulnerabilities of supply chains of grocery retailers. This has prompted big retailing brands like Amazon and Walmart to pump billions of dollars into building out robust shipping and fulfilment infrastructure.

In response, the small retailing brands have shifted their focus on micro-fulfillment centers to synergize operations by incorporating the speed of in-store pick-up service with the efficiency of big, automated warehouses. It enables them to manage quick delivery to the customers in urban areas. Tomorrow’s supply grocery supply chains will require micro-fulfilment centers to manage inventory supply and live up to consumer demand with flexibility and speed.

The rising trend of owning Franchises and its benefits for aspiring Entrepreneurs

Do you remember the last time you visited your favorite food joint? If it’s the brand you know well and has various locations throughout your city or town, most probably your favorite fast food stop is a franchise.

The benefits of owning a franchise are many for aspiring entrepreneurs. First of all, the reputable brand of a franchiser helps you make a profit while essentially taking care of your own business. Secondly, it is an axiom that the most successful franchises seldom go out of business which means, you put aside the risk that typically rests on opening a brand new business.

In fact, some main benefits of owning a franchise include getting a proven business model, a name that is well-known, and a network of vendors and suppliers.

When you get all these benefits in one-go, imagine the degree of risk and hectic works you can avoid in starting a new business.

Grocery Franchise

Determining the viability of a Franchise

If you try to figure out how much money you can make out of buying a franchise, you need to understand that it depends on a variety of factors, mostly you have to see if the franchise is well-known in your local demographic and has a demonstrated support system for franchisees. You can also consider a franchise’s number of locations and annual revenue to determine whether it can be profitable for you.

One of the most reliable ways to determine a franchise’s future viability is by evaluating Item 19 of Franchise Disclosure Document (FDD) that outlines the fiscal performance of industries. Besides, consult a lawyer or an accountant who can help you make an informed decision. Don’t consider the franchises if their initial fee and upfront investments are not conducive to your existing financial condition. In summary, to determine whether you can profit from a franchise is a subjective exercise.

Top U.S. Grocery Store franchises to own as a new Franchise Owner

  • Berrybrook Farm
  • Save A Lot Food Stores
  • AMPM
  • Carlsbad Ranch Market
  • Farm Stores
  • Locali
  • Marvelous Market
  • Taziki's Mediterranean Café

According to the report, the total number of supermarkets in the United States was around 38,307 in 2018. The U.S. Department of Agriculture reports that the sale of country’s 115,526 food stores was around $717 billion of retail food and nonfood products in 2019. The grocery stores, including the supermarkets and those smaller businesses (not including the conventional stores) generated the major share of store sales (92.1 percent).

Some Fastest - Growing Grocery Chains In U.S.

  • Ralph's – based in Southern California.
  • Vons – based in Southern California and Southern Nevada, owned by Albertsons.
  • Food 4 Less - headquartered in Compton, California, United States, owned by Kroger.
  • Stop & Shop - based in the Northeastern United States, founded in in 1892, now expanded to 415 stores chain-wide.
  • King Kullen - based on Long Island, founded by Michael J. Cullen.
  • Wegmans - headquartered in Gates, New York, operates 106 stores in the mid-Atlantic and Northeastern regions.
  • Safeway – headquartered in Pleasanton, California, United States, founded by Marion Barton Skaggs in April 1915.
  • Food Lion - headquartered in Salisbury, North Carolina. operates more than 1100 supermarkets in 10 states of the Mid-Atlantic and Southeastern United States.

Top Online Grocery Retailers In U.S.

  • Safeway Inc.
  • Shipt
  • Walmart
  • Whole Foods
  • Winder Farms
  • Amazon Prime Pantry
  • AmazonFresh
  • Blue Apron
  • Home Chef
  • Instacart (personal shopper service)
  • My Cloud Grocer
  • Crowd Cow
  • Google Express

The market status of Grocery Wholesaling Industry in U.S.

The role of grocery wholesaling is as the middlemen serving between food producers and retailers. They provide industry products and services that include; Fresh meat and meat products canned food, frozen food, dairy products, specialty food, fresh fruits and vegetables, paper and plastic products, etc.

In 2020, the revenue growth of grocery wholesaling industry dropped by 4.1% due to reason associated with the closure of downstream markets and disruptions that took place in the supply chain in the aftermath of COVID-19 (coronavirus) pandemic. Most of the customers from the industry that consist of the largest market segments, including schools, stadiums, restaurants and community events witnessed temporary suspension of their operations followed by the enforcement of pandemic laws.

However, the status of grocery retailers and supermarkets is positive as they have witnessed a buying frenzy of the customers who started to store food items assuming the volatile lifespan of the pandemic. Experts see the silver lining indicating the future growth for the grocery wholesaling industry as the country’s economic condition is in recovery mode from the pandemic. The support of the industry is largely dependent on increasing consumer spending and mounting demand from important downstream consumers, including restaurants.

Companies that hold the largest market share in the grocery wholesaling industry in U.S.

  • Sysco Corporation
  • C&S Wholesale Grocers Inc.
  • US Foods Holding Corp
  • United Natural Foods Inc.
  • Performance Food Group Company
  • Wakefern Food Corporation

Some largest wholesale Grocers In U.S.

  • C&S Wholesale Grocers
  • Brenham Wholesale Grocery Co., Inc.
  • International Wholesale
  • SpartanNash
  • Synergy Brands Inc.

Getting Grocery Store Financing

A grocer’s approach to financing depends on his business model, his values, and possibilities.

The good news is obtaining a grocery store financing or supermarket financing is now a seamless process. If you are conversant with your requirements, know your business finances and are aware of how to take care of your options, nothing can stop you from getting a loan for a grocery store to keep your business up and running.

Here, we are discussing some options for business loans and what types of financing options will suit your purpose and your grocery store business.

The fundamentals of Grocery Store Financing

Even if you are familiar with the process of business financing from your earlier experience of seeking out business loans, there’s a lot to learn about getting a suitable loan out of various types of business loans that the market offers.

One of the most important things to know, in this context is to maintain your company’s daily business that involves researching as one of the primary tasks to get a grocery store financing.

Here’s how you can get the hang of your business’ finances, credit history, and your purpose to use the money, so that your experience of getting a grocery financing is much easier and less hectic.

Early considerations for Grocery Store Owners to get business funding

1. Prepare a business plan

Get a business plan in order if you have not done it already – considering it will serve as a key part of your business loan application process.

The value of a sustainable business plan lies in the fact that it qualifies your loan application in the eyes of lenders, helping them evaluate how you, as a business owner, appear to run your company, the kind of cash you need to run your business, estimated costs, and the long-term future plans for your business.

In addition, a healthy business plan also helps you remain focused in your strategy, something very crucial for you to help your business grow in future.

2. Control undue expenses

The simple way of running a business successfully is to make sure that the revenue is bigger than the expenditures. The lenders are usually interested in knowing the growth trajectory of your business and whether the financial health of your business is future perfect. Factors like cash flow, revenue streams and usual business expenses are the projection of vial data that determine whether or not you qualify for the most attractive business loans.

To obtain a good grocery store loan, you should essentially take your lenders into confidence, convincing them that your grocery business is in healthy financial condition. Seen from the perspective of lenders, it is understandable that they are risking their investment by putting faith in your business.

Obviously, they will want a certain degree of surety that you will not default on repayment of their money (plus interest).

Being consciously aware of your business finances helps to make the bank’s approval process expedite more efficiently. Moreover, it will also serve you in the long run in term of leading a good positive impression on your creditors.

3. Maintain good credit score

It goes without saying that a bad credit score casts an instant displeasure to any lender you may seek out for a business loan.

While it is understandable that this is not the case with every type of loan, but a good credit standing can mean a reliable pathway to receiving funding for a grocery store or other business loans.

Take a good look at your personal credit history and your business credit scores. Familiarize yourself with the insights as to which lenders are most likely to grant your loan, at what interest rate.

A reliable way to countervail the bad impression due to poor credit score is seeking out a grocery store loan with a co-signer whose credit score and history are as excellent as possible.

4. Be aware of your business history

A business that’s been in operations for many years affords a good impression to your lenders and banks. The longevity of your business is a projection of your ability that you can handle challenges and decisions that come from running a functional grocery store.

In addition, the chance at getting a loan for your grocery business can be bolstered if you bring in a partner who has been a successful business owner in the past. A business for more than a year is as important a factor in determining its creditworthiness as a personal credit.

5. Figure out how much finance your business needs

All the expenses made in a business are not identical. So are business loans. They differ, according to the purpose and the needs of the business.

The market offers you a broad variety of options you can use to fund your grocery business. Understand the motive behind borrowing the money, or be familiar with why you need grocery store financing, and for what purpose. It may not sound like a piece of wise money advice to you – your lender will spare no pains in determining your creditworthiness by asking you questions about your business plan and its viability for future success of your business.

A solid business plan in place can help you understand the degree of finance your business needs and it may also help you save money for rainy days. Among a variety of loan options that you come across from different lenders out in the market, most of them can help your business with lump sum working capital that you can use to cover expenses, such as bills during cyclical swings, pay for a brand new deli slicer, etc.

However, each type of loan you see in the market comes with different interest rates and terms, respectively.

Funding opportunities for Grocery Store Businesses in U.S.

1. Small Business Administration (SBA) Loans

This is a hugely popular loan option for the grocery store owner or well-qualified entrepreneurs to get necessary financing at attractive terms for their business. If there is no risk that you will default on the repayment, you will be sanctioned a larger amount of loan from the administrative partners of SBA, at competitive rates, and on longer repayment periods for your grocery business.

To qualify for the SBA loans requires an excellent credit history, among other eligibility criteria that a borrower is supposed to follow.

2. Business Line of Credit

An excellent tool for a grocery store loan, a business line of credit gets you a set amount of finance as part of a business line of credit. You are at leeway to use the money for your business’ needs under the set limit. The reason why business lines of credit differ from business credit cards is that the latter comes with high-interest rates compared to business lines of credit that come with favorable interest figures.

In addition, credit card holders are often subjected to low spending limits, something a business line of credit doesn’t mandate.

3. Business Equipment Financing

Equipment financing is one of the best grocery store financing options to cover outlays related to buying expensive equipment that keeps merchandise fresh and ready for your customers. You need to pledge the equipment as collateral against your debt.

The ownership of the equipment will be transferred to you once the loan is repaid in full. In some cases, your lender may ask you for a personal guarantee, may impose a lien on your other business assets to secure the loan in case you default on repayment. This explains why you must carefully read the terms and conditions of your equipment financing for the grocery store.

4. Alternative financing institutions

Alternative financing institutions sound a very useful option for grocery store owners with poor credit history and not-so-good financing conditions of their business. There are many alternative lenders out in the market you can choose to have your grocery business funded with necessary financing at attractive rates.

For example, Funderial is one of the fastest-growing aggregators in the U.S. providing a variety of financing options for small and medium-sized businesses. In addition, we have our in-house financing model through which necessary funding is granted to deserving borrowers.

All you need is to submit your loan application with requisite documents, give us few times till our underwriters evaluate your documents to handpick some of the best financing options that may suit your business need and your financial discretion.

Popular Loan Companies to seek out Grocery Store Loans in U.S.

  • NewBank
  • TD Bank
  • JP Morgan Chase
  • Bank of Hope
  • The Huntington National Bank
  • Wells Fargo Bank

Key points your Lender may consider

  • The documents reflecting your up-to-date business plan and your current-day business model. These documents your lender will use to determine if you qualify for grocery store financing.
  • Your personal financial information that your lender will review.
  • Your lender may want to know what do you want a loan for? Under such circumstances, you need to present detailed financial backing up your decision to require a grocery store financing. Detailing the financial reflects how important the loan will benefit the future plans of your business. In addition, you will ensure creditworthiness of your candidacy.
  • Your lender may also take a look at your business accomplishments. They are the intangible factors that work graciously in your favor while seeking out grocery store financing.

How can Grocery Store Owners use a business loan?

Though the value of the grocery retail market is around 743 billion dollars, it is also a very expensive and low-margin industry. Many grocery store owners can’t run their stores successfully without sufficient financing in place. This is where the grocery store financing comes into the picture, helping grocery store owners to bankroll a large volume of inventory purchases, system upgrades, expansion, equipment financing, payroll, and other expenses. It stands to reason why grocery store owners should properly manage their cash flow and inventory, like purchasing bulk items they can sell faster at a much higher profit margin.

Business Loan

List of U.S. Trade Industry Associations:

Agriculture Council of America

The Agriculture Council of America (ACA) is an organization comprising leaders in the agriculture, food, and fiber communities. The organization serves the purpose of encouraging public awareness of how agriculture has a pivotal role in American society. ACA’s core purpose is to organize the National Agriculture Day Program in March of every year. The ACA and the National AG Day program came into existence in 1973.

The Bread Bakers Guild Of America

The Bread Bakers Guild of America was founded in 1993 by Pittsburgh bakery owner, Thomas McMahon, with a mission to provide educational resources to artisan bakers, help in the development of artisan baking community, and maintain the highest professional standards, along with honoring the craftsmanship of the artisan bakers. It is a non-profit alliance of professional farmers, educators, technical experts, bakers, bakery owners, students, suppliers, millers, and managers. Based in Sonoma, California, the Guild today boasts of a community of 2,500 members in the U.S. and worldwide.

California Avocado Association

A non-profit organization based in Southern California, the California Avocado Society was founded in 1915 as California Avocado Association engaged in the sustainability practices of eco-friendly farming, the wellbeing of avocado growers, and the economic viability, which is s a key part of sustainability to put spotlight on the economic value of the California avocado industry.

Food Industry Suppliers Association

The Food Processing Suppliers Association (FPSA) is a non-profit global trade association. The purpose of the association is to serve the suppliers to the food processing and packaging industries. The member companies of FPSA are provided with networking, marketing and educational opportunities to help assure their success and improvement in key business practices and network among industry colleagues. The association’s goal is to boost customer engagement through improved efficiencies and productivity, along with exploring manufacturing solutions in the supply chain and attain the highest standard of food safety.

The Independent Restaurant Coalition

The Independent Restaurant Coalition is a trade group founded in the wake of the COVID-19 to help restaurateurs, bars, and the workers in food supply and chain to survive the pandemic. For this, the group lobbied local, state and federal governments for relief to the restaurant industry that had to shut down their business because of the Covid-19 protocols enforced by the government to restrain the spread of viral infections. The leadership team of the group consisted many prominent chefs and restaurateurs with an aim to undermine the impact of the closures of independent restaurants.

Juice Products Association

The Juice Products Association (JPA) is a trade association in the U.S. It represents the country’s fruit and juice processing industry. The association claims membership of more than 130 Regular and Associate member organizations, ranging from processors, packers, brokers and marketers of fruit/vegetable juice to industry suppliers and food testing laboratories. The support of the Association extends to all the industries in the United States and overseas. Manufacturers in the JPA group represent 80% of the country’s volume of juice and fruit beverage production.

National Chicken Council

Washington-based National Chicken Council or NCC is a non-profit trade association that advocates and voices the interests of the U.S. broiler chicken industry to the United States Congress and United States federal agencies. The Council is bound to missions that include influencing key legislative and regulatory policies and government programs affecting chicken, and staying in touch with the Washington policymakers and the media about chicken production, processing and products, along with affecting domestic and global trade policy to maintain and grow overseas markets for the country’s chicken.

U.S. Poultry & Egg Association

U.S. Poultry & Egg Association is an industry trade group in America. It was formed in 1947 and is currently based in Tucker. It is the largest and most active poultry organization in the world representing overall poultry industry as an "All Feather" association, and providing research, communications, education, and technical services. The Association’s membership consists of producers and processors of ducks, eggs, turkeys, broilers, and breeding stock, along with other companies allied with the Association.

The Washington Restaurant Association

The Washington Restaurant Association (WRA) was founded in 1939 as a business association in the state of Washington and is sanctioned by the National Restaurant Association. A total of 14,039 restaurants based in the state are represented by WRA. The Association provides its members with various opportunities, including educational training and career development, along with cost-saving programs for them.

The Public Relations Society of America

The Public Relations Society of America (PRSA) was brought to existence in 1947 as a non-profit trade association for public relations professionals by combining the American Council on Public Relations and the National Association of Public Relations Councils. The Association is governed by its own set of bylaws, and boasts of representing more than 1,000 brands famous worldwide, advocating the trust, credibility and honor of public relations as a profession.

Recent Success Stories about growing Grocery Store chains in the U.S.

The year 2021 witnessed many things that got up close and personal as grocery stores embraced quicker and more sophisticated methods to get into customers’ mind. The deployment of emerging technologies helped grocery store owners understand customers’ behaviors and closely monitor shoppers’ preferences. emerged by far the fastest-growing U.S. food and grocery retailers between 2014 and 2019, with a compound annual growth rate of nearly 50%. Dollar Tree (formerly known as Only $1.00) and Albertsons Cos. respectively witnessed sales boost of nearly 25 percent in the last five years. With the growth of more than 270 billion U.S. dollars, Walmart was emerged as the top retailer in the U.S. for the year 2019.

According to the report by Progressive Grocer, Aldi has emerged as one of the fastest-growing food and grocery retailers in the country, given its considerable growth in the last five years. The contemporary Aldi’s success is attributed to company’s focus on less self-promotion and more on serving the customers. The company believes that loyal customers are ambassadors to help spread the great news there is to share about Aldi – from its wonderful lineup of products to the incredible savings customers can experience at Aldi stores.

Success Story: John Catsimatidis


John A. Catsimatidis is an American billionaire businessman and radio talk show host. He heads Manhattan-based grocery chain, Gristedes Foods as its owner, president, chairman, and CEO. He also owns the Red Apple Group, a conglomerate involved in the energy, real estate, finance, insurance, and supermarket industries.

John’s fate to become a businessman came when Tony, an uncle of a friend, sold half of his small supermarket at 137th & Broadway to him, a store that eventually parlayed into Manhattan's leading supermarket chain.

John opened his first grocery store in 1971, at Broadway and 99th Street. Soon afterward, he purchased another store on 87th street, a location west of Broadway. The store known as Red Apple became a resounding success which later acquired Gristedes Supermarkets in 1986.

To stay competitive in the marketplace, John toyed with new ideas, like keeping his grocery stores open late seven days a week and helping customers with free delivery and cashing their checks, to increase stores’ footfalls. According to John himself, keeping the business open during Sundays was an innovation that helped his business rapidly grow and expand.

By the time he aged 24, John was the owner of 10 grocery stores, made $25 million a year from his business, and personally earned a million dollar a year. Meanwhile, his Red Apple acquired 27 stores in the Bronx and Manhattan, generating annual sales of nearly $40 million that culminated to $110 million in sales, in 1985. To make his grocery business more successful, John branched out his businesses into numerous sectors, including an oil refinery that leases convenience stores in New York and other cities, and real estate holdings in New Jersey, New York, and Florida.

Within the past four decades, John’s supermarket on Manhattan’s Upper Westside grew into diversified assets generating annual sales of more than $4 billion and employing more than 8,000 individuals. John’s Red Apple purchased 36 Gristedes supermarkets and 11 affiliated Charles & Co. specialty-food stores from the Southland Corporation, in 1986.

As per a 2009 report, John’s main holdings enlisted 50 Gristedes supermarkets, 371 gas stations in 3 states, $500 million in real estate, and a flourishing oil business. John believes in hard work and doing everything that requires to be successful in a business.

Why do Grocery Stores love working with Funderial?

For grocery store chains to run successfully, timely financial assistance is one of the most important things. It helps them manage cash flow and cover sundry expenses, such as buying a new set of equipment, upgrading older equipment, expanding the business, funding marketing costs, and refinancing existing debts, among other things.

This is where loan companies like Funderial come into the picture, extending a broad variety of loan options for small and medium-sized businesses, at attractive terms through our in-house financing model, as well as through our trusted lending partners across the United States.

To help you operate your grocery store and maintain its sustainable growth, we have a host of unique financing options at affordable rates and easy terms, with instant approval timespan, and quick funding.

We are fully aware of the dire financial need a grocery store owner experiences. And in critical times like pandemic-ravaged economy forcing small businesses to shut down their operations due to lack of funding, our well-timed funding assistance can help your business survive and thrive without risking crisis-induced cessation of your venture.

Grocery Shop

Key features of Funderial business loans

  • Prompt grocery store financing assistance.
  • Funded over $ 1 billion to businesses so far.
  • Served over 20,000 satisfied clients.
  • Over 30 years of profound experience in provisioning business loans.
  • Less paperwork and instant approval for your loan application.
  • Grocery business loans are available at attractive rates and terms.
  • Loan provisioning is made possible through an in-house financing model, as well as through a network of lending partners ready to fund your business in the shortest period.
  • No hard credit examinations. Take a loan even with bad credit history.

How does Funderial financing work?

  • Submit your loan application, along with documents, to us via our website.
  • Let our underwriters evaluate your documents and come up with ideal loan options for you based on your financial condition and credit history.
  • Financing options presented to you may source from our in-house financing or our lending partners.
  • Make your selection based on the financing options offered to you. Take your pick based on your working capital requirement and business plan.
  • The requested loan amount is transferred to your business account, after signing the loan terms through mutual understanding between you and the lender.
  • We avoid undertaking a stringent evaluation process on your credit history and financial condition.

What sets us apart in the Marketplace?

  • We have over 30 years of vast experience in serving small and medium size businesses with financing opportunities in conformity with their needs.
  • We understand your business needs and timely financing assistance they require. Hence, we ensure instant approval for your loan application regarding working capital to help your business survive and thrive in the competitions.
  • We don’t entertain stringent loan approval processing. We don’t decline your application based on your past financial mistakes as shown in your credit score.
  • We have a variety of financing options at relatively more competitive rates.

If you are looking for affordable and flexible grocery store financing, Funderial is your best shot. You will not have to risk your assets, go through hectic paperwork, or succumb to a condescending evaluation of your financial status. Experience hassle-free, efficient, and seamless banking with us.

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