ShopRite marks 75 years in a changing grocery market

From handwritten lists to online carts, ShopRite has been around long enough to see many changes in the way we shop for groceries.

Founded in 1951 by the eight Newark-area mom-and-pop grocers who created Wakefern Food Corp. five years prior, the supermarket banner has since grown into a powerhouse chain of roughly 300 stores across six states.

With 146 of those locations in New Jersey, ShopRite is the largest grocery store brand in the state. And, after the New Jersey state government and online giant Amazon, ShopRite has the third biggest workforce here – roughly 30,000 employees, per state employment figures.

Despite geopolitical challenges, technological advances and shifting consumer preferences, ShopRite has held onto something that has become increasingly unusual in retail. Its stores remain largely in the hands of local, family-owned operators – many spanning multiple generations – while the cooperative model gives those businesses the scale and resources to compete.

‘The heart of ShopRite’

With ShopRite marking its 75th anniversary this year, NJBIZ recently spoke with Wakefern Chief Sales Officer Darren Caudill about how the chain’s community roots have helped it navigate its past and present while preparing for the future in an industry where change is happening at a breakneck pace.

“That local connection has always been at the heart of ShopRite — helping families find more value in every shopping trip, supporting neighborhoods and showing up for customers generation after generation,” he said.

Through Keasbey-based Wakefern’s cooperative model, independent supermarket operators pool their purchasing power and share resources like technology, marketing, private-label products, merchandising and supply chain services.

That arrangement has given family-owned grocers the scale to compete with much larger chains while allowing them to retain ownership and control of their stores, according to Caudill.

An early example of small grocers banding together to compete with the growing supermarket chains of the postwar era, Wakefern is now the largest retailer-owned cooperative in the country.

Besides ShopRite, the 80-year-old organization’s network of 380 stores includes chains like Price Rite Marketplace, The Fresh Grocer, Dearborn Market, Gourmet Garage, Fairway Market, Di Bruno Bros. and Morton Williams.

What’s Wakefern’s ‘secret sauce’?

As a privately owned entity, Wakefern does not publicly release its financial results. However, during its annual meeting last fall, it reported a 3.1% increase in sales to $20.7 billion for the 2025 fiscal year. Just seven years ago, that figure was $16.6 billion. Excluding the 2020 pandemic year, Wakefern has tracked growth every year since.

For all its size, Wakefern says it hasn’t lost sight of its original purpose of helping small businesses thrive in the always-evolving grocery industry.

“Our member owners aren’t served by Wakefern – they own Wakefern – and so they’re actively involved. We have multiple committees who are folks that run grocery stores that come into Wakefern as a group, so we get a dozen or so together and we talk about things going in the business,” Caudill said.

Members weigh in on everything from produce to technology, sharing what works in their stores – and for their customers – to help ensure investments deliver benefits across the entire system.

“We call it the secret sauce of this membership that owns us, feeding the decision-making process from the governance standpoint. So, it’s a real unique model. You won’t find that anywhere outside of a co-op because it just doesn’t exist,” he said.

Caudill went on, “The real power of this comes from that same emotion, that same passion and that same commitment happens with every employee at Wakefern and their focus … to support the membership.”

He’s also especially struck by the pride store associates have in the owners they work for and those owners’ commitment to their communities. “It really resonates top to bottom throughout this entire organization,” Caudill said.

Checking out the future

As part of an ongoing effort to enhance the in-store and online shopping experience, Wakefern has ramped up technology investments.

At ShopRite, that’s included adding artificial intelligence-powered shopping carts. Developed by on-demand delivery platform Instacart, Caper Carts aim to make grocery shopping faster and more convenient by allowing shoppers to scan, bag and check out right from their cart.

The chain has also welcomed AI-based robot Tally. Considered the world’s first and most advanced inventory robot, Tally autonomously traverses a store multiple times a day. It leverages computer vision technology to collect shelf data, ensuring products are in-stock, shelved correctly and accurately priced.

Behind the scenes, Wakefern has invested in digital ordering and other systems designed to make stores run more efficiently.

“Technology is probably the biggest catalyst of change that the organization has kept up with. And that’s both the customer-facing piece as well as how we drive cost out of our system to be able to keep bringing value to consumers,” Caudill said. “Because ShopRite really, ultimately is all about bringing value to a consumer and leveraging our buying. The utilization of technology has really allowed us to do that in a way that reduces our expense.”

Getting fresh

While the economy has “always been a significant impact on grocery shopping,” Caudill said consumers’ changing tastes are proving just as influential. Today, that includes a growing emphasis on health and wellness, with shoppers increasingly seeking foods and products they see as better for them, he explained.

“Years and years ago – probably back when we started – people really bought a lot more fresh product. That is really a trend that has returned today that we have moved through very well,” he said.

“We’ve shifted our focus completely on trying to make sure we offer the best quality meats and produce for our consumer, as well as meal solution ideas in our deli operations that meet a consumer’s need that probably weren’t as prevalent through a lot of our history — although we always had those areas,” he said.

“The reality is freshness and quality really matter, and we want our customers when they sit down at their table to consume food with their family and to have an experience that’s full of joy and flavor. And so, our ability to continue to focus on that and move with consumers is a big piece of what we have done,” Caudill said.

Cutting back

The rise of GLP-1 medications is also contributing to greater attention to protein, fiber and nutrient-dense foods, as consumers seek to make more of the calories they do consume.

Caudill said, “The amount of food that Americans are eating – and this is not just in our market, but nationally – is down. Some of that’s economics, some of that is just because of the number of people on GLP-1s now is having an impact in those numbers.”

“What people are buying is a little bit different. All you have to do is walk around the store to see it. Protein is king today. Between the aging population needing more protein and GLP-1 users needing more protein, as well as fiber and gut health and those pieces,” he said.

“They’re buying less conventional pantry type staples and they’re buying fresher product, they’re buying more premium product, they’re buying more protein-impacted product,” he said, adding, “Interestingly enough, they’re buying more health and beauty care.”

“So, we’re seeing a lot of shifts that we are shifting with as well to meet the consumer’s need in this space,” he said.

A one-stop ShopRite

Amid competition from other chains, Caudill said ShopRite is focused on keeping up with new players while making sure customers recognize the value it brings. He added that the chain tries to “cover all the bases” by offering shoppers a broad range of products and services.

New Jersey has become a particularly attractive market for supermarket expansion, thanks to its large population, dense communities and shoppers with a wide range of grocery needs and budgets.

There are a lot of retailers out there that maybe are good in any one thing or two. We have the ability to deliver whatever experience the consumer’s looking for.
– Darren Caudill, chief sales officer, Wakefern Food Corp.

Value-oriented chains Aldi and Lidl have identified the state as a key part of U.S. growth plans.

Higher-end banners like Amazon-owned Whole Foods Market and Sprouts Farmers Market are continuing to build local footprints here, too.

Caudill said, “There are a lot of retailers out there that maybe are good in any one thing or two. We have the ability to deliver whatever experience the consumer’s looking for. When it comes to new and innovative product; our stores are full of it and we bring all kinds of limited flavors for holidays, like pumpkin. But it’s also what we’re doing in organic produce. Even though we sell a lot of just conventional produce, I would put our organic selection and quality up against any of the specialty players.

“So, even though there’s a lot of new competitors out there that we have to make sure that we’re paying attention to, the consumer needs and adjusting our store to meet the consumer,” he explained. “It’s not so much about meeting the competitor, because we’re able to offer all of those diverse options into the consumer base that maybe others aren’t as specialized at … I think today’s consumer is looking for a convenient experience and the one-stop shopping that we’re able to provide certainly helps do that.”

Caring ecosystem

Although consumers may be used to living in a “very e-comm, immediate delivery-type of world,” Caudill said, “I don’t believe that some of the convenient offerings are able to do what we do with the same level of service, quality, experience and family owned.”

“You don’t see that from the mega players out there that might leave a brown box on your porch. They’re not committed to community, they’re not as connected and they don’t give back the way that we do,” he said.

Through its 27-year-old Partners In Caring program, ShopRite has donated $65 million to food banks that support more than 2,500 worthy charities. Additionally, ShopRite is a title sponsor of the ShopRite LPGA powered by Wakefern. Under that initiative, it has given $47 million to local organizations, hospitals and community groups.

Over the years, ShopRite has also helped local and regional suppliers grow alongside its member-owned stores. Products from neighborhood bakeries and specialty food producers to family cattle farmers have found a home on store shelves.

“Our members are incredibly generous in their connection to communities and donations, and those are pieces that make a big difference in who we are,” Caudill said. “And it’s not just that our family owners are helping families in the community, but we do it with other businesses, too.

“It’s this whole ecosphere of neighbors taking care of neighbors that we’re part of. I really think it goes back to that family relationship piece. When you’re a family that lives in a community and serves a community, it changes how you approach what you do,” he said, adding, “You genuinely become part of the fabric of the people that you’re around in the community.

When you’re a family that lives in a community and serves a community, it changes how you approach what you do.
– Darren Caudill, chief sales officer, Wakefern Food Corp.

“With over 40 ownership groups, we touch a lot of communities and a lot of people. I think that is what makes this work so well,” he said. “And that is what’s allowed this to sustain and actually grow at the rate it has grown and the success it’s had in these markets. Because of that connectivity they have with each and every customer. Our members are so close to the communities they serve. They really bring a perspective into our business that corporations just lose. And so that really is the magic of what we do here.”

A grocery industry veteran with more than 40 years of experience, Caudill noted the co-op’s culture as a big factor in why he joined Wakefern in January 2024 as chief sales officer. As part of the newly created position, he oversees merchandising, marketing, sales, digital innovation and other areas.

Caudill arrived soon after Mike Stigers took the helm ahead of longtime president Joe Sheridan’s retirement in late 2023.

Private eye

As inflation continues to affect the grocery market, consumers are increasingly seeking value. Food-at-home prices have risen about 30% since 2020 due to a combination of factors like higher costs for commodities, labor, transportation and energy. Weather-related disruptions and supply constraints also continue to put pressure on food producers and retailers.

This year, the cost of filling a grocery cart is expected to rise 2.4%, according to the U.S. Department of Agriculture. It projects another 1.8% increase in 2027. As a result, cost-conscious shoppers are on the hunt for private-label products, which often offer cheaper price points than branded items. In response, many grocers are expanding their private label offerings to meet the demand for affordability.

Wakefern’s portfolio includes flagship food and beverage brand Bowl & Basket along with household products brand Paperbird. The company introduced the award-winning lineups in 2019 to offer premium food and household goods at everyday prices.

There’s also the Wholesome Pantry label focused on free-form and organic foods and the Well Everyday collection of organic, vegan and gluten-free groceries, personal care items and lifestyle essentials.

After noting Wakefern has steadily added new items across all categories in its own brands, Caudill said the lines “do incredibly well for us.”

“It allows us to go out and find high-quality products that we can put the Bowl & Basket label in or the Wholesome Pantry label in and offer the same type of quality that you’re getting from a national brand player, but get a much better everyday price on it,” he said.

Making a difference

“Certainly, if they want to buy the national brand, it’s there for them and we run it on sale appropriately, but just that everyday value that they can get in own brands really makes a difference in a lot of consumers’ budgets,” he said. “We know there are a lot of customers that buy the own brand as their primary selection. They prefer it over national brands, and we’ve seen that multiple times in surveys we’ve done.”

According to Caudill, Wakefern has a dedicated team focused on its own brands, tracking consumer trends and looking for opportunities to expand existing products or develop new items. Once the team spots a trend, it researches what shoppers want and looks for suppliers that can deliver it, he said.

While most of the products are sourced domestically, Wakefern also works with suppliers around the world, including in Europe, Canada and Mexico, to find the right quality and fit for shoppers, he said.

“Then we make sure that we’re also able to capture the best costing that allows us to put the retail on it that serves the customer’s expectation they’ve grown in that brand,” Caudill explained. “And that team is launching dozens and dozens of items every single year in that space. And some of those are permanent, some we just bring in seasonally because of the flavor profile. They’re always putting new products on the shelf as we continue to move to the consumer’s need.”

“It really comes back to consumer. Every day we’re working on ways to find value we can bring to consumers and make their lives better and make their food experiences better,” he said.

Shop talk

Caudill believes Wakefern banners will “most likely grow” beyond the Northeast in coming decades.

“I think ShopRite certainly is a format that works very well in a lot of parts of the country and is sustainable and could do very, very well in other places of the country. But in many of these places, there’s already brand names that exist, and so branding is a much bigger challenge,” he said.

“But without a doubt, ShopRite is a brand that would work very well in other places of the country. And in fact, without exception, every week we get multiple requests from folks that used to live in this market that have moved out of state and beg us to come to those markets,” he said.

“That especially applies as you move south. New Jerseyans tend to migrate south, so you can almost follow the 95 corridor all the way down to Florida and see the number of requests we get for folks wanting us to come to those markets,” he explained.

“And we do continually look at expansion opportunities. Our membership is always looking for a chance to grow their models, and we have stores all along the seaboard now, and I would expect we’ll continue to show growth along that space,” he said.

Politics aside

Caudill also weighed in on broader pressures facing the grocery industry, such as transportation costs, supply chain disruptions and geopolitical tensions. The war in Iran has added to those challenges, particularly as tighter diesel supplies make it more expensive to move food and other goods from producers to stores, he said.

“Our world is no different than our customers’ households. When the price of services goes up, they go up for us as well. When the electric bills go up, our electric bills go up. When the price to run trucks and diesel goes up, we experience that as well,” Caudill explained.

“Our real charge in that is not to spend time on the politics of it, but to continually look for ways we can drive efficiencies into the model to help offset those costs to hold pricing down. And that’s where we spend our time and our energy — where can we find the savings? So, those natural increases we see become less of a hindrance for us than maybe you might see at some of our competitors,” he said.

According to Caudill, Wakefern has made technology investments a key part of its strategy “to help reduce or improve cost.”

“And when I say reduce cost, that might be the cost of us doing business, it might be the cost of product, as well — by reducing handling, we’re reducing those things. And some of that reduction comes in improved quality, as well. We know if we can get produce faster from our receiving docks to a consumer’s refrigerator, that the consumer’s eating experience will be better,” he said.

Caudill went on to emphasize Wakefern’s commitment to using technology “to drive cost and drive better quality to the consumer.”

“That’s really where the tech has played for us is where we can drive efficiencies into the model both in our backroom play and our customer-facing play,” he said, adding, “We’re having a lot of success with that as well.”

Yes, we Can Can

Since its debut in January 1971, the Can Can Sale has grown into one of ShopRite’s most recognized and celebrated sales events.

Initially focused on canned goods, the three-week blitz has evolved over the years to include national brands across every category, such as pasta, cereal, sauce, coffee, paper goods and many other items, at heavily discounted prices.

Known for its catchy, Moulin Rouge-inspired jingle, punchy advertisements and great value, the campaign resonates with customers at the chain’s stores across the Northeast.

Caudill said, “Well, there’s no question Can Can is a legacy event in this part of the country, and we’re proud to be the owner of that because it drives an incredible amount of stock up business for us.”

“We literally do get notes from customers that drive hundreds of miles to shop the Can Can sale because the values are so great. And value is really the catch there for the consumer,” he added.

 

“If you think about the birth of that sale, it really gave consumers a chance to stock up before there were ways to do that as efficiently as there are today. And it really allowed a traditional family-owned community grocery store to offer the kind of bulk-buying value you might see at some of the largest warehouse-type players in the country,” he said.

Though the next Can Can sale is still three months away, Caudill said, “We’ve got some really, really awesome deals coming in so far that we’re working on.”

Because the promotion has become such an attractive outlet for consumer packaged goods giants, more and more brands are looking to participate – and even competing – with one another for spots, he said. That growing interest gives ShopRite even greater leverage to bring better deals and value to shoppers, according to Caudill.

The team is also working on marketing campaigns associated with the Can Can sale.

“We get tons of customer comments around the Can Can dancers. Today’s consumer has a very different mindset around shopping than maybe the customer of a generation ago, and we’re looking to bring new customers into the mix. So, we’re going to really modernize this,” he said. “We’re going to make it fun, we’re going to make it interactive, and I think everyone’s going to be enjoying the campaign and maybe even participating a little Can Can themselves.”

75 years and counting

ShopRite officially celebrated its 75th anniversary in August with two weeks of special savings, digital deals and limited-time offers to thank customers who have supported the chain for generations.

The promotion included $25 off purchases of $75 or more on select Bowl & Basket, Paperbird, Well Everyday and Wholesome Pantry products.

There was also a three-day super sale on a variety of customer favorites, such as eggs, produce, snacks, cookies, pantry staples and Italian sausage, with featured prices ending in “.75” as a nod to the milestone year.

Beyond the savings, the chain marked its seven-and-a-half decades by sharing stories, recipes and reflections online. Anniversary content also appeared in stores and on ShopRite’s social media channels.

Caudill said, “We shattered records on sales of some of these items, like 75-cent dozen eggs, and more than doubled the sales of our prior record of sales of eggs. It wasn’t that long ago that we were all paying almost $5 for eggs. So, it was very exciting to be able to bring consumers that. We also had a lot of success with personal size Häagen-Dazs ice creams at 75 cents.”

“We did some other products as well that were astonishingly great values for consumers and really drove a lot of excitement to the stores. And our stores had so much fun with it too,” he said.

Celebrations abound

ShopRite’s anniversary year also included celebrating America’s 250th with limited-edition patriotic packaging on 30 of its top-selling private label products.

Additionally, ShopRite got into the soccer spirit this summer with a series of free, fan-focused celebrations at nearly two dozen of its supermarkets. Timed to coincide with 2026 FIFA World Cup matches at MetLife Stadium in East Rutherford and Lincoln Financial Field in Philadelphia, the “We Kick It Here Tour” transformed parking lots at participating stores into interactive fan zones featuring product sampling, giveaways, face painting and personalized trading cards.

“Our owner members are very, very focused on making sure that we provide the highest possible value for our consumers,” Caudill explained. “Our entire approach is making sure our customers can get together with their families and celebrate and add to the joy of their life experience.”

“I always get passionate on this because food is emotion … and, when you think about how food intersects with our life, there is not a single celebration we have that does not involve food in some form or fashion, whether it be a birthday party or an anniversary. All the moments of joy in our life come with food,” he said.

A PE-backed platform can provide technology, recruiting support, expanded advisory capabilities and acquisition funding that a smaller firm might take years to develop alone. “And so do all the moments of sorrow. When we experience loss and we do celebrations of remembrance, there’s always food. And so, it doesn’t matter if it’s the eating season, a holiday or just a personal life event, we celebrate with food. We are so proud to be part of everyone’s life and help provide value as well as a quality product so people can have those celebrations. It’s really a big deal,” he said.

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