Come September, Wayne Pesce will have led the Connecticut Food Association as president for 10 years. In the conversation below, he discusses with The Griffin Report of the Northeast what’s happening in the state’s grocery industry, including some of the keys to success in today’s grocery industry.
How is Connecticut’s economy faring?
Connecticut’s economy remains stable but faces challenges. With a population of 3.6 million, we’re a geographically small state with a dense market, making for intense competition.
Unemployment remains relatively low; however, labor shortages persist in retail and foodservice. Inflation continues to shape consumer behavior, with shoppers becoming more price conscious. [They’re] trading over to private label, shopping promotions more aggressively and shifting toward bulk purchases or discount retailers.
The combination of recent tariffs and federal funding cuts is set to have a direct impact on consumer prices and state budgets, forcing both food retailers and Connecticut lawmakers to make tough financial decisions.
Tariffs on imported goods – especially food, packaging materials and essential supplies – are driving up costs for retailers, which inevitably get passed on to consumers. At the same time, the loss of federal funds, including recent cuts to public health and food assistance programs, will strain state resources and limit Connecticut’s ability to fill the gaps left behind.
How would you characterize the overall health of the grocery industry in CT? How about independent grocers in particular?
Connecticut’s grocery industry is ultra-competitive, with every major retailer on the planet doing business here. Yet independent grocers continue to hold their ground, proving their resilience in the face of immense competition.
Winning retailers – whether independents or national chains – understand their customers, anticipate their needs and adapt accordingly. Those who succeed focus on fresh, high-quality offerings, competitive pricing and a seamless shopping experience, whether in-store or online. Personalization, strong customer engagement and the ability to pivot quickly in response to shifting demands remain key differentiators.
Despite challenges such as tariffs, rising labor and energy costs, rising interchange fees and regulatory burdens, Connecticut’s grocery sector remains resilient, with successful retailers finding ways to adapt and stay relevant in a rapidly evolving market.
Wegmans and Target are coming to Norwalk. Is Norwalk’s location the draw? Are other areas seeing store growth?
Yes, Norwalk’s proximity to New York City, affluent customer base and strong retail infrastructure make it an attractive location for new entrants. Beyond Norwalk, other areas experiencing grocery store expansion include Fairfield County and parts of New Haven and Hartford counties, where demographic trends and market demand support growth.
However, in more rural and suburban areas, the trend has been one of consolidation rather than expansion.
At the same time, Connecticut’s independent grocers have proven their staying power even in the face of big-name entrants. Their ability to provide tailored offerings and hyper-local service continues to differentiate them from national competitors.
Any trends among retailers – self-checkouts, e-commerce, service departments, labor strategies?
- Self-checkout and automation: Retailers are expanding self-checkout options, but many independents are balancing this with staffed lanes.
- E-commerce and digital engagement: Online ordering, delivery and curbside pickup remain strong, although demand has plateaued since the onset of the pandemic. Most food retailers are increasingly investing in digital loyalty programs and online promotions.
- Service departments and fresh offerings: Fresh departments, such as delis, bakeries and prepared foods, remain a key strategy, with local and regional players excelling in offering high-quality, locally made options that differentiate them from national competitors.
- Labor and retention efforts: With a tight labor market, food retailers are increasing wages, offering flexible scheduling and implementing retention bonuses. Grocers have retained employees by fostering a strong workplace culture and investing in their teams.
Primary grocery-related legislative concerns?
- Swipe fees (Senate Bill 1460): The unfair practice of charging merchants swipe fees on sales tax remains a significant concern, and efforts are under way to eliminate this extra cost for merchants across the state.
- House Bill 6856 – Price regulation: The broad scope of this bill has raised serious concerns among business leaders, who believe it could lead to higher costs, compliance burdens and fewer consumer choices.
- Digital coupon accessibility: Ensuring that consumers without smartphones have an alternative way to access discounts is a key issue under discussion.
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