Is Shoprite Franchise?-Know More

Shoprite, founded in 1946 in Newark, New Jersey is owned by the Wakefern food corporation. Wakefern operates 28 stores and the rest are operated by a group of Wakefern cooperative members. Most of them own several stores but some own only one store.  Shoprite offers great prices on a wide variety of items and strives to make shopping convenient and enjoyable. The products offered by ShopRite are bakery, grocery, delicatessen, health and beauty, frozen foods, orifice, and general merchandise, and they offer services such as pharmacy online shopping and home deliveries. So, is Shoprite franchise?

Is Shoprite Franchise?

Shoprite is not a franchise. It is a retail cooperative store that is individually owned by Cooperative members who are families living within the communities and employing people within their community. 

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Wakefern food corporation is the largest retailer supermarket corporation in the united states. 

Shoprite has its presence in six states in the United States, Connecticut, Delaware, Maryland, New Jersey, New York, and Pennsylvania. Even though Shoprite is owned by Wakefern, there are 50 affiliates and each member runs their stores, there are standard rules and regulations which guide all the stores.

Retail cooperative

Retail cooperatives focus on the needs of their members. They pool their resources together to purchase in bulk engaging in joint promotion efforts and sharing marketing expenses. 

They transport and warehouse together and that is how they can beat prices and offer low prices to consumers. Their method of operation is to achieve high volume growth at lower than market prices. 

The individual members of the cooperative own the business and answer to their members. The individual business owners come together to reduce costs thereby creating a corporate entity that bids for them deciding what also works for them. 

They decide what products to carry independently in their stores while the board of directors determines the standards and practices of all cooperative members.

 Wakefern, a parent company, owns and manages 28 ShopRite locations and is the largest affiliate within the cooperative. Members of the Wakefern food corporation are owners of ShopRite are

ShopRite chain stores include:

  • Price rite
  • ShopRite Wines and spirits are located mostly adjacent to or inside ShopRite
  • ShopRite
  • The fresh grocer
  • Gourmet garage

Differences between a co-operative and a franchise

  • The board of directors of a cooperative is voted for by the cooperative members, while the board of directors is appointed in a franchise.
  • Cooperative members who own stores pay to join and also pay an annual fee but they do not pay a franchise fee. in a franchise, the franchisor pays the franchise, annual, and joining fees.
  • Owners of a cooperative retail shop can run the business the way they see fit but in a franchise, all rules are laid down.
  • Members of the retail cooperative share equal voting rights irrespective of the amount they put in while in a franchise the shareholder with a higher share has more voting rights.
  • Under a franchise, you lose your identity with the brand name but in a retail cooperative, you share the ownership of the brand.

Strengths of  Shoprite as a retail cooperative store

They support local agriculture as they place more importance on organic products compared to other discount stores. It is the largest retailer-owned cooperation in the united states.

It has strong backing from its parent company, Wakefern. They offer other products and services such as pharmacy and wines. They have over 300 stores in the northeast united states.

They have a variety of Shoprite products in store

Weaknesses of a retail  cooperative store

  • There are limited financial resources hence limited revenue and profits
  • Lack of efficient services
  • Lack of protection by members
  • Limited scope and market share as Shoprite’s presence is restricted to the eastern coast of the United States 

The top 10 Retail cooperative stores like Shoprite are:

  • Topco associates
  • Wakefern food corporation
  • Associated wholesale grocers
  • Unified grocers
  • Associated food stores
  • Grocers cooperative central
  • Affiliated foods
  • Food midwest
  • URM stores
  • Piggy wiggly

Shoprite competitors

  • Walmart
  • Acme markets
  • Price chopper 

ShopRite has a competitive advantage over other stores in that:

  • they have a more efficient supply chain, 
  • provide low-cost goods and services without compromising on quality, and 
  • continuous improvement in its distribution network by
  • Improving their fresh food offering
  • Driving innovation
  • Expanding its wellness proposition


Shoprite is not a franchise, it is a cooperative retailer and has the backing of its parent company Wakefern food corporation. 

Its core business is in food retailing. Shoprite is mostly found in small communities and strives to provide low-cost food at an affordable price. They rank number one in customer net promoter score.

  • What is the major business of Shoprite?

Food retailing

  • How does ShopRite promote its products?

Through advertisements on TV and other digital methods such as email marketing and social networks.

  • Where is the largest ShopRite located?

Brodheadsville, PA, USA, and owned by Kinsley’s family market.

Is Shoprite Franchise?-Know More

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