Grocery store owners make anywhere from $60,000 up to around $300,000 or more yearly. Location, size of store & whether it’s a franchise affect the pay range the most. While grocery store owners on the top end do earn more than a grocery store manager for a company, that is not the case on the low end of the range. According to Indeed.com, grocery owners average $62,419 yearly.
Profit Margin and Sales Volumes
Conventional grocery profit margins are about 2.2 percent. Larger stores have higher sales volumes and satisfactory income despite small margins. Most aim for lower margins to sell more items cheaper. Smaller stores have fewer staff and facilities than bigger chains. Prepared foods and vitamins are most profitable grocery departments with profit margins typically around 1-3 percent.
Grocery Store Profitability
Grocery stores tend to have some of the lowest profit margins compared to other types of businesses. Specialty grocery stores might earn slightly higher margins. In 2017, the average net profit for grocery stores was 2.2 percent. Stores can be profitable if owners offer good customer service, manage inventory thoughtfully, and consider various factors like demand, staffing, and location.