65 • September | October 2026 • abasto.com distinguished themselves through lower shrink, stronger inventory ma- nagement, disciplined expense con- trol and investment in fresh depart- ments. Produce, meat, deli, bakery and seafood remained defining diffe- rentiators among the highest-perfor- ming independents. E-commerce is a significant, un- derutilized opportunity. Online sales represented just 1.1% of in- dependent grocers’ total revenue in fiscal year 2025. The average online basket was roughly three times the size of the typical in-store transac- tion, pointing to meaningful upside for operators willing to invest in their digital presence. Regional performance continued to diverge . The South and West pro- duced the strongest profitability re- sults, while the Northeast continued to face higher labor and occupancy costs alongside intense competitive pressure. Capital investment was measu- red. Capital expenditures averaged just over 2% of sales. Remodel activi- ty reached one of the lowest levels on record, reflecting the wave of capital projects completed earlier in the de- cade. Consumer interest in health, protein, ingredient transparency and GLP-1-related eating patterns continued to create new opportuni- ties in fresh foods and perimeter de- partments. Artificial intelligence is moving from conversation to pilot. The 2026 study examines technology, including AI, as a key strategic the- me. While only a small share of in- dependent retailers currently uses AI extensively, most are piloting or evaluating applications, primarily in marketing content, customer en- gagement and business analytics. Operators broadly view AI as increa- singly important to competitiveness over the next several years, though adoption remains in its early stages.