Foodtown (USA)
Encyclopedia
Foodtown is a northeastern United States
supermarket
cooperative founded in 1935 by Twin County Grocers, Inc. Currently, there are 68 Foodtown stores; 24 in central New Jersey
, 34 in New York, and 7 in eastern Pennsylvania
.
Foodtown's corporate offices are located in Avenel, New Jersey
. However, like competing supermarket cooperative ShopRite
, all Foodtown stores are independently owned and operated, either by one person, or by companies operating multiple stores. Foodtown also distributes its store-brand items to several independent grocery stores on a contract basis.
and in New Jersey, with its biggest cooperative members, Melmarkets Inc. and Mayfair Supermarkets Inc. operating 17 stores on Long Island and 28 stores in New Jersey, respectively. At the height of its success in 1994, Foodtown's Twin County Grocers, the chief supplier headed by Martin Vitale, who also served as CEO of the cooperative, supplied 165 Foodtown stores and had wholesale revenue of over $1 billion.
In 1995, Dutch retailer Royal Ahold purchased Melmarkets Inc. and Mayfair Supermarkets, Inc; all 45 stores were changed to the Edwards Super Food Store banner. Two Long Island
stores owned by Food Parade
left the Foodtown cooperative, becoming part of ShopRite Supermarkets
in 1997.
The resulting loss Foodtown's largest cooperative members was devastating, since Melmarkets and Mayfair made up over half the volume of the cooperative. In 1998, Foodtown declared bankruptcy and an embezzlement scandal followed. Following these events, many Foodtown stores converted to other banners, or closed (including Vitale's six New Jersey stores); Vitale previously owned a store in Saddle Brook, New Jersey
, that closed well before his bankruptcy.) In 2004, Foodtown closed its warehouse; it now is serviced by various wholesalers. The cooperative is still responsible for negotiating with suppliers, Foodtown advertising, promotions, and marketing programs.
Since the late 1990s, Foodtown has shown a resurgence, opening five stores in Pennsylvania and bringing stores, which left the cooperative following the scandal, back into the fold. In addition, many of the existing members have expanded and/or remodeled their stores. Foodtown now consists of 66 independently-owned-and-operated supermarkets.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
supermarket
Supermarket
A supermarket, a form of grocery store, is a self-service store offering a wide variety of food and household merchandise, organized into departments...
cooperative founded in 1935 by Twin County Grocers, Inc. Currently, there are 68 Foodtown stores; 24 in central New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
, 34 in New York, and 7 in eastern Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
.
Foodtown's corporate offices are located in Avenel, New Jersey
Avenel, New Jersey
Avenel is a census-designated place and unincorporated area within Woodbridge Township, in Middlesex County, New Jersey, United States. As of the United States 2000 Census, the CDP population was 17,552...
. However, like competing supermarket cooperative ShopRite
ShopRite
ShopRite, Shoprite, Shop Rite or Shop-Rite may refer to:* Shoprite , the South African food distributor* Shoprite , the Isle of Man-based food retailer that once traded in the United Kingdom...
, all Foodtown stores are independently owned and operated, either by one person, or by companies operating multiple stores. Foodtown also distributes its store-brand items to several independent grocery stores on a contract basis.
History
In the 1980s and 1990s, Foodtown was a major player on Long IslandLong Island
Long Island is an island located in the southeast part of the U.S. state of New York, just east of Manhattan. Stretching northeast into the Atlantic Ocean, Long Island contains four counties, two of which are boroughs of New York City , and two of which are mainly suburban...
and in New Jersey, with its biggest cooperative members, Melmarkets Inc. and Mayfair Supermarkets Inc. operating 17 stores on Long Island and 28 stores in New Jersey, respectively. At the height of its success in 1994, Foodtown's Twin County Grocers, the chief supplier headed by Martin Vitale, who also served as CEO of the cooperative, supplied 165 Foodtown stores and had wholesale revenue of over $1 billion.
In 1995, Dutch retailer Royal Ahold purchased Melmarkets Inc. and Mayfair Supermarkets, Inc; all 45 stores were changed to the Edwards Super Food Store banner. Two Long Island
Long Island
Long Island is an island located in the southeast part of the U.S. state of New York, just east of Manhattan. Stretching northeast into the Atlantic Ocean, Long Island contains four counties, two of which are boroughs of New York City , and two of which are mainly suburban...
stores owned by Food Parade
Food Parade
Food Parade Incorporated is a Long Island based supermarket chain with two stores in Plainview, New York and one store in Commack, New York. Food Parade is a member of the ShopRite retailers' cooperative and therefore trades as ShopRite...
left the Foodtown cooperative, becoming part of ShopRite Supermarkets
ShopRite
ShopRite, Shoprite, Shop Rite or Shop-Rite may refer to:* Shoprite , the South African food distributor* Shoprite , the Isle of Man-based food retailer that once traded in the United Kingdom...
in 1997.
The resulting loss Foodtown's largest cooperative members was devastating, since Melmarkets and Mayfair made up over half the volume of the cooperative. In 1998, Foodtown declared bankruptcy and an embezzlement scandal followed. Following these events, many Foodtown stores converted to other banners, or closed (including Vitale's six New Jersey stores); Vitale previously owned a store in Saddle Brook, New Jersey
Saddle Brook, New Jersey
Saddle Brook is a township in Bergen County, New Jersey, United States. As of the 2010 United States Census, the township population was 13,659....
, that closed well before his bankruptcy.) In 2004, Foodtown closed its warehouse; it now is serviced by various wholesalers. The cooperative is still responsible for negotiating with suppliers, Foodtown advertising, promotions, and marketing programs.
Since the late 1990s, Foodtown has shown a resurgence, opening five stores in Pennsylvania and bringing stores, which left the cooperative following the scandal, back into the fold. In addition, many of the existing members have expanded and/or remodeled their stores. Foodtown now consists of 66 independently-owned-and-operated supermarkets.