Unlocking 10% Higher Margins: Why CPGs Can’t Afford to Overlook Independent and Regional Grocers
Swiftly
For decades, major chains and their Retail Media Networks (RMNs) have been the default for CPG brands seeking scale. With centralized buying, standardized reporting, and streamlined execution, these giants have offered simplicity. But this reliance has come at a cost.
Independent and regional grocers consistently deliver margins around 10% higher for CPG brands than national chains (Forbes, 2025). These grocers generate more than $250 billion annually and represent nearly 1% of the total U.S. economy (FMS/NGA 2025 U.S. Independent Grocers Financial Study, PR Newswire). Despite this scale and profitability, independents remain underinvested in by many brands. The reason? Fragmentation.
The Fragmentation Challenge
The independent and regional grocery channel is vast but fragmented across different platforms, purchasing systems, and inconsistent access to usable shopper data. . Thousands of stores operate under dozens of banners, and while each is significant, the lack of centralized tools has made it difficult for CPG’s to run coordinated campaigns or measure results at scale.
Many brand teams have defaulted to broad national campaigns, developed with large advertising agencies and funneled through specialized media buying firms. These agencies typically prioritize mass-market channels, with little incentive to shift dollars into fragmented retail media opportunities like independents and regionals.
This data gap has left independent and regional grocers overlooked, despite the fact that they deliver outsized returns compared to larger national chains.
Why Brands Default to National Campaigns
Many brand teams have defaulted to broad national campaigns, developed with large advertising agencies and funneled through specialized media buying firms. These agencies typically prioritize mass-market channels, with little incentive to shift dollars into regional or independent opportunities.
The result? CPGs often funnel disproportionate spend toward national chains where reporting is easier. But this strategy leaves meaningful margin and shopper engagement untapped. Independents deliver higher profits, deeper loyalty, and strong community influence – making them one of the biggest growth opportunities in grocery today.
How Swiftly Brings Scale to a Fragmented Market
Swiftly allows CPG brands to streamline how they interact with regional and independent grocery stores and finally tap into this underserved market. It starts with a single point of contact that allows them to engage with millions of shoppers across more than 70 retail banners without having to establish and manage dozens (or hundreds) of different relationships.
Rather than focus solely on national chains, CPG brands should be able to reach any shopper, anywhere with personalized content and engagement strategies – regardless of where they shop. Instead of driving a potential purchaser to a national chain, the CPG brand can direct them to any number of retailers (national, regional, independent) where they happen to be shopping at the moment.
CPG brands like to work with large chains because they can track potential shoppers throughout the sales funnel – transparency that allows them to measure the effectiveness of an awareness campaign. Swiftly allows independent and regional grocery stores to link these awareness campaigns to in-store sales where nearly 90% of grocery transactions still take place. Closing this technology gap allows CPG brands to use transaction logs and their own CRM data to tie offers to specific transactions while enabling hyper-personalization on an individual level.
CPG brands can then use Swiftly to deliver hyper-personalized content to shoppers wherever they are, and however they want to be engaged - including alcohol cashback, rewards and other customer loyalty programs. Developing a more personal relationship with shoppers by delivering personalized content regardless of store opens more opportunities for purchases – including at independent and regional grocery stores that offer higher margins.
The Payoff: Higher Profits, New Audiences
With budgets under greater scrutiny than ever, accuracy and accountability are non-negotiable. Channeling more dollars into lower-margin, less efficient outlets is a missed opportunity – and Swiftly provides a better path.
Independent and regional grocers represent one of the most profitable growth channels available to CPG brands. Swiftly providers the technology to unlock it – at scale, with transparency, and with measurable results.
By bringing independents and regionals together under one platform, Swiftly is leveling the playing field – empowering CPG brands to capture higher-margin growth and strengthen relationships with the shoppers who matter most.
Ready to unlock the extra 10% with Swiftly? Click here to get started.
