Linda Doherty, president and CEO of the New Jersey Food Council, took time out of her busy schedule in October to provide an update to The Griffin Report on the state’s grocery industry. Below are her responses.
How is the economy in your state? What kind of population and unemployment trends are you seeing?
Our research shows as of September, New Jersey’s economy is showing signs of both growth and instability. Challenges in the labor market, with rising unemployment and job losses in key sectors, as well as a decline in the state’s business climate due to high business costs, are raising concerns about the sustainability of economic growth going forward.
In 2024, New Jersey’s population continues to grow slowly, with notable demographic shifts, such as increasing diversity and an aging population. Meanwhile, the unemployment rate has risen to 4.7 percent, reflecting a complex labor market where job growth persists but not enough to offset the broader economic challenges in certain sectors.
Are you seeing growth in grocery store numbers in your state? Are there areas of the state that are seeing more growth than others?
New Jersey’s grocery store landscape is experiencing selective growth, particularly in ethnic markets – areas that are projected to see significant population and employment increases in years to come.
While chains such as Grocery Outlet, Aldi, Lidl and Amazon Fresh are expanding their presence, independent stores continue to compete by adapting to evolving consumer habits and regional economic shifts. Some more traditional major supermarkets are closing stores due to underperformance. Overall, the New Jersey grocery industry is a dynamic but shifting market.
How would you characterize the health of the grocery industry in the state? What about the health of independents?
The New Jersey grocery industry demonstrates selective growth and remains a vital pillar of the state’s economy, contributing significantly to employment, community giving programs and overall economic activity. However, rising prices and intensified competition pose challenges that require strategic adaptation to sustain this momentum.
One program that has an impact on food sales in New Jersey is the rollout of the Summer SNAP food assistance program. As one of the 37 states participating in the new, permanent, nationwide Summer EBT program, New Jersey has led the way, issuing more than 585,875 cards with a value of $120 to eligible students across 722 participating school food authorities.
The program brought over $70 million in federal funds into New Jersey that families were able to redeem at any grocery store that took EBT cards. New Jersey will conclude the program by the end of October and is already working on 2025 Summer SNAP plans.
What are the greatest challenges facing grocers?
The recent suspension of the port strike on the East Coast was welcome news as New Jersey food retailers were starting to see patterns of shoppers beginning to overstock paper products and toiletries. The fear of a sudden escalation in panic buying is always a concern, especially since the experience of the COVID-19 crisis.
In an encouraging development, NJFC worked closely with the New Jersey Department of Labor as a significant stakeholder to implement the NJ Minor Working Papers Program. The creation of a standardized online application process between minor workers, caregivers and our workforce allows employers to fill jobs, appropriately staff operations and serve their customers while promoting a youth workforce with a skill set and opportunity to succeed.
Modernizing working papers for minors who have grown up in a digital world coupled with the desire of the business community to streamline an efficient operational platform is a smart investment in our New Jersey youth.
[RELATED: Grocery Retailing In Northeast: Diverse Landscape Varies By City, State]
What are the primary grocery-related legislative concerns this year? Bills the association supports and/or opposes?
NJFC created an omnibus bill designed to target organized retail crime enterprises and protect employees and customers. This legislation includes language that will:
- create the crime of aggravated assault of a retail worker;
- give prosecutors the option to request enhanced sentencing for persistent offenders;
- provide a one-year lookback period for the aggregation of the value of the amount of stolen goods to determine the grade of the crime;
- increase the penalty for tax evasion in connection with being a leader of an ORC enterprise;
- upgrade the crime of being the leader of an organized retail theft enterprise;
- create the offense of fostering the sale of stolen property;
- establish a unit or other office in the Department of Law and Public Safety to investigate and prosecute cases concerning retail theft and assist county prosecutors in doing the same; and
- combat gift card fraud.
NJFC expects to see legislative movement on this bill in the coming weeks.
Also, NJFC strongly opposed any changes to the reusable bag law, especially a proposal to bring back paper shopping bags for online sales. We are proud of our launch of a statewide education campaign urging shoppers to donate their gently used reusable bags that are then sanitized and donated to local food banks, pantries and those in need. This innovative NJFC Bag Redistribution Plan is making a difference in our communities and aiding those in need.
Additionally, there have been several misguided packaging mandates which are unworkable. While we have expressed concerns about these individual bills, we think it is important for policymakers to understand the totality of the challenges that our industry is facing from legislation that is being advanced.
Altering packaging may compromise the structural integrity of the package or container. In addition, food and beverage manufacturers may be challenged to reach their sustainability goals due to unexpected challenges, such as disruptions in the supply of certain materials, technological limitations or food safety considerations.
Moreover, NJFC is significantly concerned with several bills that prohibit the sale, manufacture or distribution of foods which contain various substances or additives. A patchwork of state-level laws disrupts interstate commerce, reduces consistency, confuses consumers and increases the costs of food and other products.
Even if different states passed their own laws with identical language, the details, standards and other critical provisions that are often determined during the regulatory process could result in significantly different outcomes. The FDA is the appropriate authority to review, approve, regulate or remove food substances and color additives in products which are a part of national and global commerce.
In July, FDA issued a final rule to revoke the regulation allowing the use of brominated vegetable oil in the U.S. food supply, which is an example of our food safety system working as intended.
Are you seeing growth in membership?
As mentioned, the New Jersey grocery business is a dynamic but shifting marketplace. This circumstance has allowed for the significant growth of the food council membership, sponsorship participation, expansion of the scholarship program and event attendance.
During a time of business, political, world and cultural unpredictability, NJFC experienced a solid year as our path was determined by the rollout and implementation of the four pillars of the association’s “Beyond Essential” strategic plan created by the board of directors.
Leadership development, membership, image and voice became our compass, guided events and activities, defined policy agenda and garnered member support. Our overwhelming accomplishments and success in 2024 are attributed to the dynamics of this strategic plan that helped us far exceed our growth goals set for membership, sponsorships and scholarships.
Anything else we need to know as we’re updating our readers on the market or your association?
NJFC just graduated the 2024 Leadership Development Class, which was led by former graduates. With seven graduating classes, the Food Council Leadership Development Program provides training for future leaders who have a passion for working in the food industry, possess an interest in the dynamics and trends of government and want to make a difference in the direction of the industry.
These individuals have demonstrated a commitment to NJFC and have great potential for growth and advancement in the New Jersey food distribution business. This program has achieved immediate results, as six previous graduates participate on our board. One currently serves as chairman of the board, another leads our e-commerce committee and others now chair and mentor this program.
Also, our scholarship program continues to grow and serves as an academic engine for the future of our member associates and their families. Since the inception of the scholarship program in 2011, the three original NJFC scholarships have grown to 33 awards with NJFC and member company scholarships totaling $108,000. Last year, the board created the $5,000 Presidential Scholarship Award that will recognize a new industry leader each year.
The 2024 President’s Scholarship Award will pay tribute to the late Bill Sumas, chairman of Village ShopRite, who recently died.
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