Maryland Grocers Face Rising Costs, Budget Pressures Heading Into 2027
As excerpted from The Shelby Report:
Maryland’s unemployment rate fell to 3.9 percent in September, its lowest point since April 2025 and below the national average of 4.2 percent. Even so, the head of the state’s retail trade group says grocers are operating under strain.
“I would describe Maryland’s grocery industry today as resilient but under tremendous pressure,” said Cailey Locklair, president of the Maryland Retailers Alliance. “The demand for groceries isn’t going anywhere, but we need to make sure Maryland remains a place where grocers of all sizes, especially independents, can afford to operate, compete and grow.”
A year ago, Locklair told The Griffin Report that tariffs, thin margins, regulatory costs and inflation could lead to more consolidation in Maryland’s grocery market. She said many of those pressures continue, with rising costs for labor, utilities, transportation, regulatory requirements and goods weighing on retailers that operate on profit margins of 1 to 2 percent.
“I wouldn’t say consolidation is inevitable, but it’s certainly a concern, particularly for independent grocers who don’t have the same purchasing power or resources as larger chains,” Locklair said.
She added that independents continue to find opportunities by knowing their customers and communities.
“They can be more flexible, offer specialty and locally sourced products, provide personalized service and respond quickly to what their customers want. Many are also serving communities where larger chains may not see the same opportunity.”
Click here to read the full profile discussing Maryland's economy, budget deficit, and legislative priorities for MRA in The Shelby Report.




