Supermarkets and Other Grocery (except Convenience) Stores — Business Survival Rate

An estimated 67% of supermarkets and other grocery (except convenience) stores businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 7.8%.

67%
5-Year Survival Rate
+0.1%
Net Growth Rate
65,750
Total Firms
6,068
Annual Firm Deaths

Is Supermarkets and Other Grocery a Good Business to Start?

With a 67% five-year survival rate, supermarkets and other grocery (except convenience) stores has an above-average survival rate compared to the national average of roughly 50%. This makes it a relatively safe industry to enter — businesses here tend to find stable demand and sustainable economics.

The annual exit rate of 7.8% is lower than many sectors, suggesting that once established, these businesses have staying power. That said, lower failure rates often correlate with higher barriers to entry or established competition.

Entry vs. Exit Rates

Annual rate of new businesses opening versus existing businesses closing.

Entry Rate (new businesses)9.0%
Exit Rate (closures)7.8%

Net positive: more businesses opening than closing (+1.3 pp spread).

Job Creation & Destruction

7.9%
Job Creation Rate
7.7%
Job Destruction Rate
+0.1%
Net Job Growth

The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 2,959,092 workers across 65,750 firms.

Want to know how much supermarkets and other grocery (except convenience) stores businesses actually make?

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Frequently Asked Questions

What percentage of supermarkets and other grocery (except convenience) stores businesses fail?
Approximately 33% of supermarkets and other grocery (except convenience) stores businesses fail within their first 5 years. The annual closure rate is 7.8%, with 6,068 firms closing permanently in 2023.
Is the supermarkets and other grocery (except convenience) stores industry growing or shrinking?
The supermarkets and other grocery (except convenience) stores industry is currently stable with a net job creation rate of +0.1% per year. New businesses are entering at 9.0% while 7.8% close annually.

Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.