Ingles sees increase in sales and profits due to rising grocery prices during pandemic, financial records reveal

The impact of soaring grocery prices following the COVID-19 pandemic has not only sparked discussions about affordability but has also resulted in a significant increase in sales and profits for grocery chain stores like the Black Mountain-based Ingles Markets.

Grocery prices across the nation experienced a 29 percent increase between 2020 and 2025, prompting concerns about price gouging from individuals like former Democratic presidential candidate Kamala Harris. However, the industry argued that these price hikes were necessary to cover the rising costs of food and food production.

The grocery sector witnessed a substantial financial growth period starting in 2020 as the pandemic took hold. During this time, Ingles’ sales showed a 40 percent increase from 2019 to 2023, with net income climbing by an impressive 158 percent. These findings were revealed through an analysis of the company’s annual reports conducted by Asheville Watchdog. Despite the consistent number of stores at 198 during this period, Ingles experienced a noticeable surge in financial performance.

Before the pandemic, Ingles’ net income margin witnessed a notable increase, more than doubling from an average of 1.9 percent in the three years leading up to the pandemic to 4.6 percent in the years 2020 to 2022. This translated to an increase from keeping 2 cents of every dollar sold to about 5 cents post-pandemic. However, due to the aftermath of Tropical Storm Helene, sales declined in the last two years, leading to a narrowing of net margins to 1.9 percent in 2024 and 1.6 percent in 2025.

While the pandemic brought about significant shifts in consumers’ eating habits, driving increased business for grocery stores, it also resulted in a surge in prices. Supply chain disruptions and various other factors contributed to the steepest increase in food prices since the 1970s. This inflationary trend was further compounded by higher labor and energy costs, an Avian flu outbreak, and tariffs on imported foods.

Ingles Markets attributed its sales boost during the pandemic to factors such as a higher demand for groceries due to increased home dining, sales of meals and foods with higher profit margins, inflation, and effective promotions and cost competitiveness.

Analysis of Ingles’ gross profit margin showed a rise from an average of 24.1 percent in the three years pre-pandemic to an average of 25.6 percent from 2020 to 2022. This increase was the second-highest among six publicly-traded grocery chains surveyed. However, the company’s gross margin then dropped post-pandemic, indicating potential absorption of cost increases rather than passing them on to consumers.

The decline in sales at Ingles in the last two years was attributed to Tropical Storm Helene’s impact in 2024, causing the closure of four stores and damage to the distribution center in Black Mountain. Despite these challenges, grocery prices continued to rise, underscoring the ongoing pressure on household budgets due to increasing food costs.