ShopRite Supermarkets SWOT and PESTLE Analysis
ID : 521004053| Feb 2023| 16 pages
COMPANY PROFILE -ShopRite Supermarkets
Business Sector :Food and Grocery Retail
Operating Geography :United States, North America
About ShopRite Supermarkets :
ShopRite (formerly Shop-Rite and Shop Rite) is a supermarket chain based in Keasbey, New Jersey, United States. In 1946, a Del Monte Foods sales representative approached independent grocers in Newark, New Jersey, and founded ShopRite. The term ShopRite was coined in 1951. The company’s current base of operations extends northeast from Maryland's Washington metropolitan area to Connecticut's Hartford area, as well as far north as New York's Capital District. Although the majority of ShopRite stores are located in New Jersey, the company also has a large presence in the New York City suburbs and Pennsylvania (mostly in the Philadelphia area). ShopRite comprises 50 individually owned and operated affiliates with more than 300 stores, all under its corporate and distribution arm, Wakefern Food CoCorporation. The company has supported the Community Food Bank of New Jersey for many years, donating food, programmes, resources, and hundreds of volunteer hours each year. Education and preparation of special needs students to prepare them for meaningful jobs in the retail industry is another priority of community support. On 15 April 2021 Brookdale ShopRite announced the launch of Fresh to Table, a ground-breaking store-within-a-store concept that offers consumers a reimagined shopping experience featuring fresh, on-trend foods, easy-to-prepare recipes and ingredients, and meal solutions in a range of grab-and-go formats.ShopRite Supermarket's Unique Selling Point or USP lies in it being the largest retailer-owned cooperative in the United States, and that it prioritises organic goods over other discount stores. ShopRite Supermarket's mission statement reads, "The guiding mission of the Shoprite Group of Companies is to be the consumers' preferred shopping destination, by retailing food and non-food products at the lowest prices from conveniently located outlets in an environment that is conducive to shopping".
ShopRite Supermarkets Revenue :
USD 18,300 million - FY ending 3rd October 2020 (y-o-y growth 9.75%)
USD 16,674 million - FY ending 3rd October 2020
Competitive Analysis of ShopRite Supermarkets
SWOT
PESTLE
The SWOT analysis for ShopRite Supermarkets is presented below in a matrix followed by the detailed analysis report
| Strengths | Weaknesses |
| 1. Unique cooperative structure allows easier strategic partnerships 2. Large fleet of transport and warehouse capability through Wakefern 3. USAs largest retail-owned cooperative 4. High diversification into related businesses through Wakefern | 1. Difficulties in sustaining the pharmacy business 2. Limited geographic coverage within United States |
| Opportunities | Threats |
| 1. Increased demand for organic food segments 2. Social media commerce for store like experience 3. Increased possibilities for M&A deals for expansion after Covid-19 4. Possibility to align costs and make the business asset light | 1. Increased dominance of Amazon bad for ShopRite online business 2. Highly competitive market in food retail business |
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SWOT & PESTLE (combined)
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Detailed SWOT Analysis of ShopRite Supermarkets
Strength
1. Unique cooperative structure allows easier strategic partnerships: ShopRite operates under a cooperative structure, so the ownership of the business is dependent on actual ownership of the stores. This allows a flexible structure for the company. For instance, Village Supermarkets owns 30 of the ShopRite stores across four states. This helps both the firms to develop synergy without any hassle related to mergers and acquisitions deals. ShopRite closed its 60 pharmacy stores but transferred the prescription files easily to its competitor CVS. Along with that, they also transferred the employees such that priority was given for the existing employees in the stores. Also, when another firm A&P filed for bankruptcy, ShopRite acquired 13 of the stores. Thus, the unique cooperative structure has helped the company to change the ownership of operating stores as per the need in specific situations.
The remaining section under "Strength"is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
1. Increased demand for organic food segments: Organic markets are expected to grow at a CAGR of 12.2% till 2027, to a value of $272 Billion worldwide. This gives the importance of organic products in the portfolio of the company. ShopRite has one of the sister company Wholesome Pantry that specializes in this segment. Focusing on this brand can help ShopRite cater to the changing consumer choices. Expanding into organic food items is easier for ShopRite compared to the other players because they have high local brand recall and enjoy easy brand recognition. With the help of the existing network of suppliers, they can start increasing their portfolio of authentic organic products. With the capabilities of Wakefern food corporation in warehousing, the company can easily take care of the sensitive handling of organic products.
The remaining section under "Opportunity"is available only in the 'Complete Report' on purchase.
Threats
This section is available only in the 'Complete Report' on purchase.
Major Competitors :
- Pick n Pay
- Acme Markets
- Amazon
- Price Chopper
- Walmart
- Kroger
- Whole Foods
Major Brands :
- Shoprite Supermarkets
- Shoprite Pharmacy
- Shoprite Online Shopping
- Shoprite Wines and Spirits
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SWOT & PESTLE (combined)
Complete Report
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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ShopRite Supermarkets BCG Analysis -
ShopRite Supermarkets Segmentation, Targeting and Positioning (STP) Analysis -
ShopRite Supermarkets Ansoff Matrix Analysis
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References used in ShopRite Supermarkets SWOT & PESTLE Analysis Report
1. Wakefern posts nearly 10% sales gain for fiscal 2020 - https://www.supermarketnews.com/retail-financial/wakefern-posts-nearly-10-sales-gain-fiscal-2020
2. About us - https://shop.shoprite.com/aboutus?cfrom=footer&_ga=2.248251719.1707974447.1619079117-1511950905.1619079117
3. Wakefern to shut 62 ShopRite pharmacies - https://www.supermarketnews.com/retail-financial/wakefern-shut-62-shoprite-pharmacies
4. The Pandemic Is Rewriting the Rules of Retail - https://hbr.org/2020/07/the-pandemic-is-rewriting-the-rules-of-retail
5. Organic Food Market Worth $272.18 billion by 2027, Growing at a CAGR of 12.2% From 2020 With COVID-19 Impact - Meticulous Research® Analysis - https://www.globenewswire.com/news-release/2020/12/08/2141147/0/en/Organic-Food-Market-Worth-272-18-billion-by-2027-Growing-at-a-CAGR-of-12-2-From-2020-With-COVID-19-Impact-Meticulous-Research-Analysis.html
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ShopRite Supermarkets SWOT and PESTLE Analysis has been conducted by Mohit Harishchandra Deshmukh and reviewed by senior analysts from Barakaat Consulting.
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ShopRite Supermarkets SWOT and PESTLE Analysis
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