New Jersey grocers struggle with rising costs and closures
Twenty-eight New Jersey supermarkets have shut down over the past two years, a development that grocery sector executives describe as evidence of deeper financial stress among retailers. Linda Doherty, president and CEO of the New Jersey Food Council, framed the closures as a cautionary indicator, emphasizing that rising costs and sluggish economic expansion are disproportionately affecting households with lower incomes.
Sales of food and beverages across the state are expanding at a restrained pace, with retail prices sitting roughly 3 percent above long-term norms. Doherty observed that consumers—particularly those operating on tight budgets—are struggling to maintain spending levels despite ongoing outlays. She said, “While still spending, the purchasing power of shoppers remains an issue, and lower income households are feeling it the most.”
Economic projections for New Jersey in 2026 and 2027 paint a restrained picture. According to Rutgers University’s New Jersey State Policy Lab, the state’s GDP is forecast to advance by just 0.9 percent in each of those years, trailing the national average by an entire percentage point. Employment growth is also expected to remain modest, climbing from 0.2 percent in 2026 to 0.5 percent in 2027.
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Though the unemployment rate dropped to 4.3 percent in August, the largest year-over-year decline among states reporting decreases, payrolls contracted by 1,700 positions that month. The decline followed a revised downward adjustment of 21,900 jobs between June and July, showing ongoing instability in the labor market.
Policy shifts under new governor create uncertainty
Doherty noted that the Food Council’s engagement with Governor Mikie Sherrill’s administration has followed a predictable trajectory: an initial phase of uncertainty as new leadership takes shape. She referenced past transitions under governors Chris Christie and Phil Murphy, where policy adjustments frequently disrupted business operations. Doherty said, “Every new administration brings an uncertain period as new officials take office and try to push campaign promises that can be harmful to business.”
The council has, however, made headway with Sherrill’s team on several fronts. For instance, updates to weights and measures regulations have gained momentum. The governor signed the Fair Price Protection Act in July, prohibiting retailers from applying personalized pricing based on individual consumer data. The legislation takes effect in August 2027, while a one-year pause on new electronic shelf labels begins in February 2027 to allow for additional review.
Doherty, who plans to retire in January, admitted that the council is now working to address gaps in the law after its rushed approval by legislators. She said, “We are hopeful this fix will achieve both goals for supporters and industry.”
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Retail theft crackdown yields measurable results
One area where New Jersey has delivered tangible outcomes is in combating retail theft. The state’s organized retail crime law, enacted in April 2025, introduced tougher penalties for repeat offenders and expanded enforcement tools. Doherty credited the law’s provisions, including stronger deterrents and updated prosecution methods, for weakening organized theft networks. The council also designed training programs to help officers apply the law consistently.
Looking forward, the Food Council is prioritizing packaging regulations and potential extended producer responsibility policies. Doherty reported that a public education campaign led by Vice President Mary Ellen Peppard has tempered lawmakers’ push for impractical mandates. She said, “New Jersey policymakers have slowed down their rush to enforce or pass these unworkable requirements.”
Amid persistent challenges, Doherty highlighted one policy victory: the state’s 2019 prohibition on single-use plastic and paper bags. Four years later, she described the measure as a success. Doherty said, “[The ban] has been a complete success and consequential achievement for the New Jersey environment and the communities we serve.”
