NCG member co-ops have experienced robust growth through 2024, providing strong momentum as we enter 2025. Our system’s sales growth continued to accelerate during the year, and we expect to end 2024 with annual growth above 6%. Growth for NCG co-ops continues to exceed that of the overall U.S. retail food market for the second year, as U.S. grocery sales growth was reported at less than 3%. Meanwhile, our natural and organic competitors are also experiencing same-store sales growth of between 7% and 8%.
Fewer than 30 NCG members experienced sales declines in 2024, compared to 35 in 2023 — both well below the 50 per year average during the six years prior to 2023. Also important to note is that 30 NCG members delivered growth of more than 10% during 2024.
Co-ops are benefiting from increased demand for natural and organic food. Our growth has been driven by increases in both customer count (the number of transactions) and transaction size. All departments contributed to 2024’s sales growth:
- Packaged Grocery = 6.3%
- Refrigerated Grocery = 6.9%
- Frozen = 4.1%
- Bulk = 4.1%
- Produce = 4.3%
- Meat = 8.2%
- Deli = 6.0%
- Wellness = 3.8%
Our system’s earnings as measured by EBITDA (earnings before interest, taxes, depreciation and amortization) have remained flat at 2.5% of sales during the past two years compared to our historical, pre-pandemic average of 4% of sales. Gross margins were stable at 37% of sales over the past two years, and personnel costs increased from 24% of sales in 2022 to 24.5% since then.
Feed the Growth with Strategic Investments
I believe demand for the cooperative business model and good food will continue to be elevated, and we should take this opportunity to make strategic investments in our business. Use this opportunity to catch up on any deferred maintenance and make improvements to your stores. In short, now is the time to feed the growth and increase our service to our members, customers and communities. NCG’s retail support and store development teams stand ready to assist you with this important work.
I know that operating and leading your co-op continues to be challenging, and that our markets continue to be competitive. I encourage you to invest more in staff development wherever possible. We must increase our investment in our systems, processes and people to continue to grow the cooperative economy.
Our challenges will continue to test our commitment and dedication, but we know our inclusive business model provides better outcomes for every stakeholder. This work has never been easy — we don’t choose the cooperative form of business because it’s easier; we choose it because it’s better. I know of no other endeavor with greater potential to positively impact our food system and the health and wellness of our communities. Your NCG team looks forward to supporting your growth and success in 2025 and beyond.
