Is Shoprite a franchise?

The Shoprite franchise stores are infamous for their awesome price deals and product discounts.

But oops. Did we say franchise?

There have been countless misconceptions about Shoprite being a franchise.

Especially with its controversial exit from the Nigerian retail market after 15 years.

Shoprite employee wheeling shopping carts into a Shoprite outlet

Luckily, this post will clarify everything you need to know about the “Shoprite franchise”.

Who is Shoprite owned by?

Shoprite was originally owned by the South African billionaire, Christo Wiese.

The store was established in 1979, and is now the largest food retailer in Africa. 

Shoprite cashier checking out customer purchased items

Shoprite spread its outlets in 15 African countries, having over 2000 outlets and 144,000 employees.

Currently, Shoprite is individually owned by members of the Wakefern Food Corporation.

Is ShopRite a franchise?

Shoprite is not a franchise. 

Rather, it’s a retail cooperative.

It is individually owned by members of the Wakefern Food Corporation.

But who is Wakefern?

The Wakefern Food Corporation was created in 1946.

It is one of the largest retailer supermarket cooperatives in the United States of America.

Its headquarters is in Keasbey, New Jersey, and additionally, Wakefern houses other subsidiaries such as:

  • The Fresh Grocer
  • Price Rite Marketplace
  • Gourmet Garage
  • Dearborn Market

Now that we’ve seen that Shoprite is not a franchise, let’s look at what a franchise is.

What is a franchise and how does it work?

A franchise works like a license.

It gives an investor, or franchisee, the opportunity to operate a business under a franchisor’s trade name.

Franchise illustration

At the start of this contractual relationship, the franchisor provides the necessary support the franchisee needs.

This is to help the franchisee deliver the brand’s promise to customers. 

Such support can include finding locations for new store outlets and training staff on the mode of operation and management.

How do you tell if a business is a franchise?

Franchise businesses usually post signs in their stores or notes on their marketing materials.

These materials can include brochures, websites, or even vehicles.

Those signs will help you indicate if they’re independently run or not, and who owns them.

What is the difference between retail and franchise?

Under a franchise structure, there is limited room to operate the business to your preference.

This is because you’re selling under a franchisor’s name and signage.

That means you can’t introduce new product lines or run major tweaks to the outlet designs. E.g. color theme.

But a cooperative retail store like Shoprite gives the franchisee much room to run the business however they see fit.

Of course, they’ll still be expected to perform under certain standards.

But the conditions won’t be as strict as that of a franchise.

What grocery stores franchise?

Here are 10 notable names on the global list of franchises:

  • Burger King
  • KFC
  • McDonald’s
  • 7-Eleven
  • Domino’s
  • Taco Bell
  • Pizza Hut
  • Smoothie King
  • The UPS Store
  • Hardee’s

FAQs

What is the best franchise to own?

It’s hard to pick, but Dunkin’s and McDonald’s are part of the best franchises to own.

Dunkin’s has high customer traffic swarming all its outlets.

It has also proven its resilience amidst the COVID pandemic.

McDonald’s is another prominent name to consider when looking for franchises to own for similar reasons.

How much does ShopRite CEO earn?

As of 2019, ShopRite’s present CEO, Pieter Engelbrecht, amassed a R21.3 million salary.

That’s roughly around $1,569,384

He was earning R63,130 per day.

Does ShopRite have free delivery?

ShopRite offers free delivery.

However, customers are only eligible for it when they order items worth up to $100 or higher. 


Did we successfully dispel your Shoprite franchise misconception? You can check out these other secrets you probably didn’t know about grocery stores: