ShopRite, one of the most popular supermarkets, announced that it will be closing down stores! So, Is ShopRite going out of business?
Store closures have become a common occurrence these days owing to inflation, among other factors. But when names such as ShopRite announce such news, you ought to get concerned.
So, in this article, let us see why ShopRite is closing stores and if it is really going out of business.
ShopRite was founded in 1946 in Newark, New Jersey, when a sales representative of Del Monte Foods started taking to independent grocers.
At that time, grocers were facing problems with obtaining fair prices for wholesale goods. The Del Monte representative saw an opportunity and advised the grocers to try cooperative buying.
Seven of them liked the idea and agreed, paying $1,000 each to establish Wakefern Food Corp. Wakefern Food Corp. was then incorporated on December 5, 1946, and in 1951, the name ShopRite was created.
Is ShopRite Closing Stores?
Yes, ShopRite Supermarkets Inc., a wholly owned subsidiary of Wakefern Food Corp., is all set to close five ShopRite stores and gas stations in the New York State Capital region.
The list of regions where ShopRite stores would close down includes:
- North Greenbush
The chief communications officer of Wakefern, Karen Meleta, also confirmed that these five ShopRite stores will be closed down on Dec. 9.
Due to the ShopRite store closure, an estimated 500 employees will lose their jobs.
Even in the year 2021, ShopRite shut down a few stores, including one in Waterbury, Connecticut, one in Long Island, and two outlets in Hudson Valley.
Why Is ShopRite Closing Stores?
ShopRite is a well-known American supermarket that was founded in 1964 with the aim to provide lowest prices in quality food and essential home goods to its customers.
The reason why ShopRite is closing down five of its locations is because they have been unable to make enough sales to even cover the daily expenses.
“We entered the marketplace a little over a decade ago to bring a quality supermarket to the area. Unfortunately, we have not been able to sustain the level of sales needed to keep the stores operating today,” Meleta said.
Is ShopRite Going Out Of Business?
The recent ShopRite closures might get you thinking- Is ShopRite going out of business?
Well, it is true that ShopRite is closing stores in five locations due to underperformance. However, that does not mean that it is going out of business.
In fact, ShopRite recently announced that it will open new ShopRite stores in in other market areas on the East Coast. For example, ShopRite announced that it will be opening a state-of-the-art supermarket in Sussex, New Jersey, that will have everything right from groceries to hardware.
The newly built outlet is all set to open on Wednesday and is located at 1 Wiebel Plaza. Additionally, this new outlet will bring in 250 full and part-time jobs to northwestern New Jersey.
Amidst store closures, ShopRite has been renovating and adding new stores as well. So far this year, the grocery store has opened new locations in:
- Fair Lawn, New Jersey
- Woolwich Township, New Jersey
- Drexel Hill, Pennsylvania
- Elmsford, New York
And has re-opened stores in:
- Staten Island
- Glassboro, New Jersey
A Look At ShopRite’s Revenue
As you can see, the revenue performance of ShopRite has been somewhat on and off over the last five years. Last year, the company made $11.35 billion in revenue, reflecting a loss of 3.06% compared to the revenue of $11.71 billion in 2021.
The declining revenue is the reason why ShopRite is closing a few stores.
What Is The Future Of ShopRite?
Since ShopRite is closing down stores that are not performing well, you might be curious to find out what is the future of Shoprite. Will it shut down more stores? Is it going out of business?
Apart from new store openings, Wakefern announced that it will put up tech-enabled sampling kiosks at The Fresh Grocer stores and 95 ShopRite.
Along with this, it will also plan out its fresh-to-table concept, which will offer meal solutions and grab-and-go offerings to several stores.
ShopRite, just like many other companies, including Kay Jewelers, Lowe’s, Big Lots, etc. is all set to close down a few of its stores. However, the good news is that it is not going out of business and is simply taking the step to cut down to stores that are not making enough sales.
Along with closures, the company is all set to open new stores and implement new strategies, the details of which we have shared above.
We hope this article on- Is ShopRite going out of business was useful to you.
How many outlets does ShopRite has?
Currently, ShopRite has nearly 280 supermarkets that are located throughout Pennsylvania, New Jersey, Delaware, New York, Connecticut, and Maryland.
Where is ShopRite headquartered?
ShopRite is headquartered in Edison, NJ.
Who owns ShopRite?
Wakefern food corp. Owns ShopRite, and Wakefern has 48 member companies that run and operate 365 supermarkets, including ShopRite, The Fresh Grocer, Gourmet Garage, Price Rite Marketplace, and more.