How Much Money Does a Grocery Store Make in a Day

Grocery stores are some of the most enduring institutions in the retail landscape. They address an essential human need—to eat three square meals daily, most of which will be cooked at home.

Grocery stores can always rely on maintaining high demand, even in times of inflation and crisis. However, turning a regular profit is easier said than done.

As a store owner, you need to be aware of how much money does a grocery store make in a day. Grocery store revenue depends on many factors, and this article will reveal how much money does a grocery store make.

Average daily sales for grocery stores

Grocery is a thriving sector of the retail industry. There are roughly 63,000 grocery stores and supermarkets across the US. They range from small neighborhood stores run by local entrepreneurs to large chains like Walmart and Kroger.

The average US grocery store is a supermarket with an area of 45,000 sq ft. How much money does a grocery store make in a day? A store of this size gets $14 million annually or $38,000 daily.

Of course, this is just an average figure. The actual revenue on a day-to-day basis depends on the size of the grocery store, the goods it stocks, and the strength of its customer base.

Here are some estimations of how much revenue different types of grocery stores generate in a single business day:

Small stores

These stores are usually located in rural settings. They offer essential items and basic food products but do not have specialty items like bakery and deli products or organic foods.

Smaller rural stores also receive less foot traffic compared to larger stores in busier areas. How much money does a grocery store make in a day? They earn around $650 in daily revenue, which adds up to $20,000 monthly.

Medium-sized stores

Suburban grocery stores are larger and more well-stocked than rural ones. They have a more diverse selection of products, often including a fresh produce section, a deli, and a bakery.

These types of stores cater to surrounding communities, so they have a large and stable customer base. This setup can expect to earn an average of $1,600 in daily revenue and $50,000 monthly.

Large stores

The biggest grocery stores are often part of a larger chain. They have a comprehensive selection of grocery products meant to meet every possible customer need.

In addition to food products, these stores can have a health and beauty section and a pharmacy. They often sell household items and clothing. Because of the large variety of inventory, they receive the highest amounts of foot traffic.

When it comes to this business size, how much money does a grocery store make in a day? Approximately $3,300 in daily revenue, adding up to $100,000 monthly or higher.

How grocery stores achieve profitability

Grocery stores are in the business of selling pantry items and other necessities to consumers. Offering ecommerce, delivery, in-store pickup, and shopping assistance are some of the ways grocery stores can increase their profits.

For store owners, it’s essential to maximize every revenue channel available to make sure your grocery store makes money.

There are two important metrics to track when measuring grocery store revenue:

• Gross profit: The amount of profit from sales after deducting the cost of goods sold (COGS).
• Net profit: The actual profit left over after deducting COGS plus all other operating expenses associated with running a grocery store.

Understanding grocery store profit margins

Grocery stores operate at some of the slimmest margins in retail. According to a report by the Food Industry Association (FMI), the average profit margin for grocery stores is 1.6%.

Typical expenses for grocery stores

Grocery stores have such low margins because they bear many heavy operational expenses. Here are some of them:

• Inventory costs: Grocery stores must buy goods from vendors and suppliers to stock their shelves.
• Rent and utilities: Brick-and-mortar grocery stores cover the cost of rent and utilities, such as electricity and store maintenance.
• Labor costs: Employee wages and benefits are recurring monthly expenses for grocery stores.
• Licensing and taxes: A grocery store needs a business license to operate and pay insurance and sales tax.
• Operational expenses: Delivery, security, and store equipment maintenance are some of the most common operational expenses for grocery stores.
• Store promotion: Growing the store’s customer base requires spending money on advertisements, billboards, and online campaigns.

Learning how to manage these expenses is essential for grocery stores to make money.

How to improve grocery store profit margins

Improving a grocery store’s profit margins is possible, even if the average daily sales stay the same. This can be achieved by implementing smart processes that optimize the cost-effectiveness of your grocery store operations.

Some of these processes include:

• Inventory management: By closely tracking grocery inventory, stores can reduce losses due to shrinkage, spoilage, or theft.
• Vendor relationships: Grocery stores should pursue the best deals from their vendors and pay lower prices for their fastest-moving, best-selling products.
• Private labels: Stores can pursue private label products, which cost less to acquire and have higher profit margins.
• Digital transformation: Grocery store technology has come a long way, and stores can invest in inventory management software, point-of-sales systems, and other solutions to reduce operational and labor costs.

Despite the low margins and high competition, it’s possible for grocery stores to make a lot of money. All it takes is a considered approach and a well-planned grocery store strategy.

How can Wave Grocery help you maximize your profits

Wave Grocery offers an all-in-one digital platform designed to help grocery stores boost profits by streamlining online ordering, delivery, and customer engagement.

With customizable tools for order picking, loyalty programs, and inventory integration, Wave Grocery enables stores to tap into ecommerce and reach more customers with no upfront costs.

The platform's features, like geo-targeted delivery zones and picking app, make operations more efficient, can cut picking and delivery costs up to 40%, and enhance the shopping experience, which can drive customer retention and increase revenue.

For a precise estimate, and to check out how we can help you maximize your profits and cut your costs, you can contact our experts for personalized quotes.

‍