Mark Caraluzzi is president and CEO of Caraluzzi’s Markets, a family-owned operator of four food stores in Connecticut – Bethel, Georgetown (Wilton), Newtown and Danbury.
Caraluzzi is a member of the third generation of ownership of the company, which celebrated its 75th anniversary last year. His grandfather, Anthony Caraluzzi Sr., bought Bethel Fruit & Vegetable Market in 1949 after 27 years working for Gristede’s in the Bronx, New York. Anthony and his son, Lou, turned the market into a grocery store and changed the name to Bethel Food Market. Anthony’s other sons – Ed, Bob and Anthony Jr. “Tony” – joined the company one by one.
Members of the third generation began to make careers at the company in the 1990s. Ed’s son Matthew ran the front-end operations, and Bob’s son Steve ran the grocery department.
Mark, who is Tony Jr.’s son, had a career outside grocery before coming back into the family business in 2001.
“We grew up working and spending time in the stores as early as 10, 12 years old stocking shelves, getting carts, bagging and anything else we could do to pitch in,” Mark Caraluzzi said of himself and his cousins. “It instilled a strong work ethic in us at an early age because you didn’t want to be just known as the boss’s kid; you wanted to prove yourself to the rest of the team.”
He worked in the Bethel store throughout high school and college, but as he neared graduation, his dad, who was president and CEO at the time, encouraged Mark and his sister Jennifer to pursue opportunities outside the business to gain “external experience,” which they both did.
“He felt any decisions to come back to the family business should be on our own desires and aspirations, a tradition I plan to continue,” Caraluzzi said.
After earning his degree in business management at Assumption University, he became a marketing manager at children’s book publisher Grolier Inc. Even though it was a full-time job, he continued to work weekends at the store to earn extra money while at the same time pursuing his MBA at Sacred Heart University at night and maintaining a social life – which he reminds his kids of when they tell him they’re stressed out, he joked.
After about four years at Grolier, he moved on to the book publishing division of the National Geographic Society in Washington, D.C., eventually becoming VP of sales and marketing – the youngest board-approved VP in the company’s 200-plus-year history.
While he loved his job, he and his wife had a young son, and Caraluzzi was beginning to feel a need for greater independence.
“It was my entrepreneurial spirit driving me, and I was discussing it with my father when he asked if I’d ever consider coming back to the family business. He felt the business had a lot of potential to grow, and he offered me a position of marketing and business development to expand the company. It was a good fit for me, and coming in didn’t disrupt the structure with my other family members, so it just made sense. The rest is history, as they say.”
He succeeded his father at the helm of the company in 2005.
The fourth generation of family members currently are attending college or recent graduates, so Caraluzzi said “it’s premature to make any predictions” about succession.
But he said it was exciting last summer to see five members of the fourth generation working in the business as cashiers, e-commerce pickers, accounts payable support, IT support and marketing.
“The challenges of leading a family business can be tough and get even more complex when it’s an extended multigenerational family business,” he acknowledged. “We know statistically only 12 percent of family businesses successfully make it to the third generation, and that number drops to 3 percent for the fourth generation.
“That being said, in our organization we do have clear lines of structure and responsibility, which helps, but it’s not averse to overlap,” Caraluzzi continued. “The key is strong and frequent communication combined with a focus on business first and family second when it comes to the decision-making process.”
The management team comprises Caraluzzi; COO Steven Caraluzzi; and his sister, CFO Jennifer Caraluzzi Dimyan.
“When Jen, Steve and I come together with a shared vision, it builds a stronger family bond and gives everyone a sense of achievement in the end. When that works, it gives me great satisfaction.”
Stores
All four Caraluzzi’s Markets are within Fairfield County, which skews high in terms of household income and education level.
The stores are in the 35,000-40,000-square-foot space range, “which we consider the sweet spot in size,” Caraluzzi said. “This allows for a more easily shoppable experience for our customers, without us having to make sacrifices in product selection versus a smaller-format store.”
Caraluzzi’s grew out of a fruit and vegetable market, and it continues to reflect that heritage in its stores. In produce, the goal is to “get the best quality and variety and price it competitively so we’re giving an even better value to our customers,” Caraluzzi said.
But today, the stores are “first and foremost known for our meat and seafood departments,” Caraluzzi said.
“We start with a better-quality product as our entry-level offering and price it competitively. We build off that, complementing it with an extensive variety of options.”
In beef, Caraluzzi’s standard starts with Certified Angus Beef, followed by its Pure Beef brand 100 percent grass-fed and -finished line. CAB Prime and Kobe/Wagyu cuts are available as well. The company hires and trains “knowledgeable and friendly butchers who are there to assist in finding that perfect choice for any occasion,” Caraluzzi said.
The seafood department is set up like a true local market, he continued. The stores get daily deliveries of fresh, restaurant-quality seafood that they offer “at supermarket prices … offering a tremendous value to our customers.”
Over the last decade, the stores also have begun cultivating a reputation for prepared food offerings as well.
The stores’ kitchens turn out a range of grab-and-go food options that rival restaurant food, he said, “complemented by a standout bakery department that is creating and offering baked goods you just won’t find from our other local competitors.”
Specialty, organic and gourmet items as well as traditional center store items complement the wide array of perishables.
Caraluzzi’s also spotlights local products in its stores and promotes them in emails that go out to customers as well as on its social media channels.
“We offer all this variety because it’s what our diverse customer base is looking for,” Caraluzzi said. “We are truly a one-stop shop, whether you are entertaining and looking for a comprehensive selection of cheeses, charcuterie and grab-and-go party platters, or are doing your regular weekly grocery trip.”
On top of its focus on product selection, Caraluzzi’s strives to keep its stores “extremely clean, organized and well merchandised,” he said.
The stores have an airy feeling with high ceilings, yet the service departments are well defined to create a “local market” feel, he said. The flooring, display cases, wall décor and lighting were chosen to convey a warm feeling to shoppers.
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Value proposition
Even in an area where residents typically have high incomes, competitive grocery prices are important.
“Our weekly sales program is aggressive and reflects thousands of sale items each week with savings in every department and complemented by a loyalty savings program with thousands of additional items on deal,” Caraluzzi said.
The company’s primary wholesaler is Cheshire, Connecticut-based Bozzuto’s, and Caraluzzi’s utilizes its “full arsenal of promotional programs, from standard ad plans, seasonal price locks and TPRs, just to name a few,” he said. “We work closely with their buyers on special buying opportunities in order to pass savings along to our customers and stay competitive in the market.
“Our slogan is ‘Where Top Quality Meets Low Prices,’ and this is what our customers have come to expect from us.”
He further praised Bozzuto’s for its partnership. “As far as suppliers to the independent retailers, in our area, Bozzuto’s is the best in class. They have excellent support staff at all levels and comprehensive services to support us. We value our relationship with them and know they do the same.”
Team
It is no secret that a store’s team members can foster or hinder success.
“We follow the philosophy that our employees are our best assets,” Caraluzzi said. “It’s not just a catchphrase; it’s something we take very seriously at Caraluzzi’s. Our customers know we have beautiful stores with amazing products at great prices, but none of that means anything without all the preparation and personal service that comes from our amazing employees.
“Every member of our team is trained to always be professional and courteous, from our cashiers and baggers to our deli staff and management team. When you step into any Caraluzzi’s location, your experience is important to us. 
“We know our customers are busy and their time is valuable. We want them to enjoy their shopping experience, find the items they need and check out in a timely fashion. Grocery shopping shouldn’t be a chore. Our goal is to make every trip pleasurable, whether you are doing a large shop to stock up your kitchen or just stopping in to grab lunch.
“And our customers know we are more than just an average supermarket. Our floral designers and cake decorators are highly skilled and can assist with events large and small, and our kitchen offers some of the best prepared meals around, plus an extensive catering menu. We are passionate about quality, selection, service and value, and it’s our goal for every customer who walks through our door to have a positive experience.”
Caraluzzi’s started a scholarship 50 years ago at Western Connecticut State University in honor of the company’s founders that was available to staff at the Bethel store.
As part of the 75th anniversary celebration in 2024, the company revamped the criteria and increased the contribution levels of the scholarship “to better reflect our business expansion coverage of our trading area,” Caraluzzi said. “The relationship with the university is a great fit by providing financial support to these students and developing local talent who, after graduation, may even turn into career opportunities with our company.
“Our newly launched educational reimbursement program was very well received and appreciated by our employees,” he continued, noting that staff members started signing up to participate the very next day.
“We have also found it successful in recruiting new employees as part of a more comprehensive benefits offering. We know getting graduates to consider a career in retail is tough, and having a robust benefits package helps.”
The company also added a free language learning program for team members as part of the 75th anniversary celebration. Other employee perks included a free lunch (with dessert) and a $75 gift card.
Shoppers weren’t left out of the festivities, though. They were treated to two weeks of “show-stopper weekly ads with some historic sale prices,” he said, as well as in-store daily giveaways, such as Caraluzzi’s branded pens, shopping lists and cutting boards. Every customer also received a specially designed 75th anniversary tote bag.
Caraluzzi’s bakers created an anniversary-themed cake for all the stores on the last week of the celebration.
All the efforts were a way to “celebrate how far we’ve come,” Caraluzzi said. “For the family, we didn’t do anything special ourselves because … [we] felt it wasn’t really about us; it was more about our amazing employees and loyal customers in helping us get this far.”
One-stop shop
Caraluzzi’s had operated a package store earlier in its history, in the 1950s and ’60s, so it was no stranger to the wine and spirits business when Jennifer Caraluzzi joined the family business and opened Nutmeg Discount Liquors in the later ’90s.
“The decision to get into the wine and spirits business in 1997 was at first a strategic move to lock up the retail space of a former supermarket competitor,” Mark Caraluzzi said of the 15,000-square-foot location.
The name was changed, and today, there are five Caraluzzi’s Wine & Spirits locations that are run under separate ownership from the stores. But three of the five are next to a Caraluzzi’s Market.
“That concept works well to drive traffic and create a convenient one-stop shopping experience for our customers,” he added.
Right tech
Caraluzzi’s has “always invested heavily in new trends and ideas,” Caraluzzi said. “In the last 10 years, the rate of change has exponentially increased, along with new technologies coming and going. COVID obviously accelerated that trend.”
The company partnered with ECRS for functions including point of sale, scales, back-end software, e-commerce and reporting.
“That relationship has helped us simplify technology providers into an all-in-one option, reducing friction and allowing us to stay ahead of the curve,” he said.
The company also has implemented digital menu boards, online catering ordering and a deli order-ahead app “to help make our customers’ shopping experience easier and faster than ever,” Caraluzzi noted.
While the family made the investment in self-checkout at the newest store, a ground-up location that opened in Danbury in 2022, the machines eventually were taken out. Analysis showed substantial shrink through self-checkout, whether through intentional efforts or carelessness.
“To make it work for us would require too much policing, and that is not the image we want to project nor something we want to do as retailers,” Caraluzzi said. “Our cashiers already do such a great job with speed and closing out the overall store experience. Self-checkout may be fine for other retailers, but it didn’t cost justify itself for us and was just not a good fit.
“Sometimes ideas don’t always work out, but you learn a lot from failure.”
Caraluzzi’s currently is using AI in a few areas and is looking at others.
The company has been testing produce recognition cameras at the point of sale for a few years to help the cashier to identify items, thus improving speed and accuracy, and they continue to be excited by the potential, he said.
“So far, the results are very promising.”
If it continues to go well, the company plans to roll them out on a much larger scale.
Suggestive selling is another way Caraluzzi’s is looking at implementing AI.
“With suggestive selling we see the technology helping build bigger baskets not only on e-commerce but by sending targeted offers to customers based on specific past purchase history and also modeling to identify those that would likely purchase items,” he said. “Driving awareness of products and promotions really helps drive sales.”
Caraluzzi’s also has tested AI invoice recognition with integration into the back office and accounts payable systems but has not yet moved forward on that.
Future plans
For more than 50 years of the company’s history, Caraluzzi’s had just the one store in Bethel.
The second store, in Wilton, opened in 2003 after Caraluzzi’s bought and remodeled a former A&P on Route 7. The Newtown store followed in 2008, a remodeled Grand Union store. The company’s first ground-up store opened in 2022 in Danbury.
More stores could possibly join the fold but must be the right fit.
“We are always looking for new opportunities, but we are methodical about the evaluation process and take a quality over quantity approach,” said Caraluzzi, adding that a few potential locations are being considered.
Remodels also are planned, so the timetables of new locations and refreshes have to work together, he added.
When it comes to remodels, the company looks at which departments are experiencing growth and allocates space accordingly. Prepared food is one of the areas that is getting more space, as that department continues to experience double-digit growth, he said.
Caraluzzi’s Markets is in a good place, here in its 76th year, according to Caraluzzi.
“We’d like to think that, in general, we have a stronger position with all the perishable departments, including floral, deli, sushi and sub shop, along with specialty and gourmet. Then wrap that all up with our outstanding, and often complimented, customer service, and that’s what keeps our customers happy, returning and telling their friends and family about us.”