Hartford Business Journal

16 HARTFORDBUSINESS.COM | May 23, 2022 Here's how CT's independent grocery stores remain competitive, thrived during pandemic 90 years in, pandemic provides latest boost for Wethersfield's D&D Market By Linda Keslar Hartford Business Journal Contributor T hree generations of D'Apriles have built a thriving Wethersfield small grocery business that sells food products directly imported from Italy. D&D Market, marking 90 years in business in 2022, has long been popular with customers looking for authentic flavors from Bel Paese (beautiful country) and not just those from Greater Hartford's Italian-American community, but the increasing number of people who simply love Italian food, the world's most popular cuisine. "It's not just people of Italian descent who shop here, it's everyone who likes to cook and eat," said Daniel D'Aprile, 61, who today helms the independent grocery, following in the footsteps of his grandfather Vito, an Italian immigrant who opened the first D&D Market in downtown Hartford in 1932, and his father Achille, who worked side by side with his father Vito at the family business. In the early decades, D&D Market flourished as one of many mom-and-pop grocery businesses that served the city's east end neighborhood. Its shelves were lined with popular American food products as well as those imported from Italy, including cheeses, canned tomatoes, pastas and balsamic vinegars, including a D'Aprile brand started by Vito. Many of those products remain top sellers and supplier relationships established by his grandfather span generations and are ongoing, said Daniel D'Aprile. Those historic ties have been particularly significant during the pandemic, which helped D&D Market avoid the kinds of supply chain disruptions that most grocers, large and small, have experienced. "We've had plenty of product through the whole pandemic," Daniel D'Aprile said, exempting meat selections for about a month early during the health crisis. Proven resilient Aside from the ongoing pandemic, D&D Market, like many independent grocers, has survived seismic changes in the grocery industry, most recently stemming from competition from large chains, discount warehouses and online platforms. But many small grocers are thriving, often the heart of the community, with independent grocers accounting for 33% of overall U.S. grocery sales, according to the most recent statistics from the National Grocers Association (NGA). Remaining in business doesn't come without challenges. "Being a Connecticut independent grocer in 2022 is not for the faint of heart," said Wayne Pesce, president of the West Hartford-based Connecticut Food Association. "Every brick- and-mortar retailer in Connecticut faces tremendous margin pressure to operate in a state that has the highest wage and energy costs in the nation." But Pesce also praises the state's independent retailers, including grocers, for their "creativity" in competing with national retailers, with grocers in particular finding innovative ways to stay competitive. Moreover, independent grocers have proven resilient during the pandemic, which fueled record sales for the sector, a 17% average sales gain from 2020 to 2021, according to NGA statistics. Consumers' concerns about their safety from infection and preferring local brick-and-mortar retail venues, online offerings and the return to home cooking are among factors behind the sales surge. "The pandemic was a boon to all food retail, but at what cost?" said Pesce. "Panic-buying, hoarding, safety protocols, product scarcities, labor shortages and supply chain disruptions were daily obstacles." At D&D Market, sales have nearly doubled since the pandemic began, said D'Aprile. The pandemic has not only strengthened the store's customer relationships, but led many others to its doors, which have stayed open throughout the health crisis. In those early months, "people panicked and were flooding the store, buying everything they could get their hands on because they were afraid there were going to be shortages," D'Aprile said. "I was nervous we weren't going to be able to keep up. " Highland Park Market invests in technology, data analytics as e-commerce sales rise By Linda Keslar Hartford Business Journal Contributor O ver the years, Highland Park Market has remained competitive by evolving to a specialty-oriented independent grocer, expanding into catering services and prepared foods, and adapting to other trends like staying open on Sunday and extending daily store hours. But a few years back, competitive pressures led the chain to conduct a deeper dive into its business model and evaluate new strategies to boost sales, said Tim M. Devanney, co-president of Highland Park Market. Last year, through a transaction in the works pre-pandemic, the market sold its Suffield store, the lowest- performing outpost in the franchise, which now includes three locations in Manchester, Glastonbury and Farmington. The chain also reinvested and remodeled its Manchester and Glastonbury stores, reducing some food categories like pet food. No one wants to haul a 150-pound bag of dog food from a store when it can be easily delivered via online sites like Chewy.com, he said. Being an independent grocer became an advantage during the pandemic, Devanney said. While Highland Park Market experienced supply chain issues early on like most grocers, it was able to adapt by bypassing traditional grocer suppliers through ongoing relationships with numerous food service suppliers, which had excess inventory because restaurants were closed. As a result, the chain was able to provide customers hard-to-find items, from meats and paper goods to flour. "We knew we had to get product out," he said. Like its industry sector, Highland Park has seen rising revenues; business was up 20% in 2020 and growth hasn't let up. "We've never seen numbers like this before," Devanney said. With independent grocers experiencing sales surges since the pandemic began, Devanney said he's hearing more confidence from owners about their businesses. Independents who were thinking it was time to get out and sell are reconsidering, he said. Pre-pandemic, independent grocers nationwide were losing ground, with their market share in decline in 44% of U.S. counties between 2005 and 2015, according to a U.S. Department of Agriculture study. Chain stores dominate sales in most regions of the U.S., according to the study. Supple chain, labor disruption While Highland Park Market continues to reinvest its higher proceeds into improving its operations, the pandemic has been "a disaster," Devanney said, in terms of the labor shortage. The chain has 350 employees, including Continued on next page >> Continued on next page >> PHOTO | J. FIERECK PHOTOGRAPHY The Devanney family runs Highland Park Market. They are (back row, left to right): Timothy Devanney Jr. and John Devanney; (front row, left to right): Molly Devanney, Timothy Devanney Sr., Christine Sheehan and Cathleen Dyer.

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