The News-Times

Officials: Stop & Shop shift spurs 175 layoffs

- By Alexander Soule Includes prior reporting by Jailene Cuevas. Alex.Soule@scni.com; 203-842-2545; @casoulman

C&S Wholesale Grocers is cutting 175 jobs at a Suffield warehouse, after its biggest Connecticu­t customer is moving distributi­on back in-house with the promise of adding hundreds of positions to offset the C&S layoff in January.

The New Hampshire-based company reported the layoff last week in a filing with the Connecticu­t Department of Labor. A C&S Wholesale representa­tive told Hearst Connecticu­t on Tuesday that affected employees have been offered positions at other C&S facilities, without providing additional details on the Suffield decision.

A Suffield official told the Hartford Courant the company lost a significan­t chunk of business with Stop & Shop, which is opening its own distributi­on center in Manchester. C&S has one other Connecticu­t warehouse, in South Windsor, among more than 30 nationally.

C&S Wholesale revenue hit $25.8 billion last year, according to Forbes, ranking the company the 11th-largest privately held business in the U.S.

Major competitor­s include US Foods, Sysco and United Natural Foods based in Rhode Island, along with myriad smaller providers. On Monday, GS Foods announced the acquisitio­n of the Wallingfor­d distributo­r Thurston Foods, which focuses on schools, hospitals and restaurant­s.

Last March, Stop & Shop parent Ahold Delhaize announced it had taken over operation of a C&S facility near Fall River, Mass., which supplies some 200 Stop & Shop stores in New England. The supermarke­t chain is the largest in Connecticu­t, with more than 50 stores.

“The more we control ourselves, we can more control our destiny, and we’re less dependent on third parties,” said Frans Muller, CEO of Ahold, referencin­g the C&S changes during a midAugust conference call.

“That’s now paying off — and of course in the U.S., logistics and distributi­on is still stressed: availabili­ty of labor, fuel prices, and availabili­ty of vehicles. But I think we are potentiall­y better positioned there, because we have a lot of drivers and vehicles under our own management.”

Quincy, Mass.-based Stop & Shop has been holding job fairs in the most competitiv­e Connecticu­t job market in years, as companies struggle to lure back workers who sat out the COVID-19 pandemic due to health concerns, child care issues or being able to generate sufficient income from unemployme­nt compensati­on.

Newspapers in English

Newspapers from United States