Village Super Market, Inc. (VLGEA): Business Model Canvas [Dec-2025 Updated]

You're digging into how a regional grocer like Village Super Market, Inc. (VLGEA) manages razor-thin margins while posting $2.321 billion in sales for fiscal year 2025. Honestly, the secret sauce isn't just stocking shelves; it's their deep integration with the Wakefern Food Corporation cooperative. This structure, which underpins everything from their 12.9% equity stake to their procurement, is what lets them compete against the giants. We're breaking down the entire Business Model Canvas below, showing exactly how their 91% unionized workforce and massive store footprint translate into real revenue streams. It's a masterclass in operational efficiency.

Village Super Market, Inc. (VLGEA) - Canvas Business Model: Key Partnerships

Village Super Market, Inc. relies on several critical external relationships to execute its retail operations and growth strategy. These partnerships are fundamental to its scale, sourcing, and labor management.

Wakefern Food Corporation: retailer-owned cooperative and primary supplier

Village Super Market, Inc. functions as the second-largest member of Wakefern Food Corporation, which is the nation's largest retailer-owned food cooperative. This cooperative structure is the source for the ShopRite and Fairway brand names and trademarks, which Village is entitled to use. The relationship provides Village Super Market, Inc. with economies of scale in purchasing, distribution, advanced retail technology, and advertising. Village Super Market, Inc. also maintains significant financial ties, including demand deposits at Wakefern totaling $92 million.

The scale of operations within the cooperative yields specific performance metrics for Village Super Market, Inc. during Fiscal Year 2025:

Labor Unions: Contracts with a 91% unionized workforce

The labor component of Village Super Market, Inc.'s operations is heavily structured by collective bargaining agreements. The company manages a workforce where 91% are union members. The current contracts have expiration dates staggered between March 2025 and June 2028. Successfully navigating union contract negotiations is listed as a principal factor that could affect actual results.

The impact of labor management on operating expenses for the 52 weeks ended July 26, 2025, shows improvement:

• Operating and administrative expense as a percentage of sales decreased to 23.92%.
• Adjusted operating and administrative expense as a percentage of sales decreased to 23.95%.
• The decrease in Adjusted operating and administrative expenses is due primarily to lower employee costs (0.16% impact).

Third-party delivery providers for e-commerce fulfillment

Village Super Market, Inc. supports its digital sales channels through partnerships with external logistics providers. Online grocery ordering for home delivery is available across all ShopRite and Fairway stores via third party service providers, in addition to the company's own apps and websites. Same-store digital sales increased by 10% year-to-date for Fiscal 2025.

Real estate developers for new store construction and remodels

Growth and modernization are executed through capital projects involving real estate transactions. Fiscal 2025 activity included the opening of a 72,000 sq. ft. replacement ShopRite store in Watchung, NJ, on April 9, 2025. Furthermore, the company purchased the real estate for its Springfield, NJ store. Village Super Market, Inc. has budgeted $75 million for capital expenditures in fiscal 2026, which includes construction of a replacement store in East Orange, NJ.

Village Super Market, Inc. (VLGEA) - Canvas Business Model: Key Activities

You're looking at the core engine of Village Super Market, Inc. (VLGEA) operations as of late 2025. The key activities revolve around high-volume sales, strategic physical reinvestment, leveraging the cooperative structure, and managing a diverse portfolio of banners.

High-volume retail grocery sales and store operations

The primary activity is running the day-to-day retail grocery business across its entire footprint. This involves managing inventory, labor, merchandising, and in-store services like pharmacies and prepared foods departments to drive sales volume. The scale of this operation is reflected in the fiscal 2025 performance metrics.

Here's a quick look at the scale of sales activity for the full fiscal year 2025:

The most recent quarterly data, for the first quarter ended October 25, 2025, shows continued momentum in existing stores, with same store sales increasing by 2.5% and same store digital sales growing by 14%. You can defintely see the digital channel remains a strong driver.

Store modernization and replacement strategy

A critical, capital-intensive activity is the continuous revitalization of the physical plant. This involves replacing older, smaller locations with larger, more efficient formats designed to boost sales per square foot and improve customer experience. This strategy is a direct execution of their operational excellence commitment.

• Replaced a 44,000 sq. ft. store with a new 72,000 sq. ft. ShopRite in Watchung, NJ, which opened on April 9, 2025.
• Budgeted $75 million for capital expenditures in fiscal 2026.
• Planned FY2026 expenditures include construction of a replacement store in East Orange, NJ, expected to open in fiscal 2026.
• Planned expenditures also cover construction for another replacement store expected to open in fiscal 2027.

Centralized commissary production for prepared foods and bakery items

Village Super Market, Inc. engages in the activity of centralized production to ensure quality and consistency for high-margin departments across its stores. This is a specialized activity that sets them apart from some other members.

• Owns the production center for prepared foods and deli items located in the Bronx, acquired in 2020.
• Features high-quality, competitively priced own-brand offerings, including under the Bowl & Basket and Paperbird brands, which are stocked across its locations.

Procurement and distribution management via Wakefern's system

Managing the relationship with the Wakefern Food Corporation cooperative is a core activity, as it dictates much of the supply chain. This activity secures economies of scale for purchasing and distribution that a standalone regional chain couldn't match.

The reliance and benefits from the cooperative structure are quantified below:

Managing the 34 ShopRite/Fairway and 3 Gourmet Garage locations

This activity is the direct management and operation of the entire physical store portfolio, which spans four states. The mix of banners requires tailored operational strategies, especially for the specialty markets in New York City.

The total operating footprint as of late 2025 is:

• Total Supermarkets Operated: 34.
• ShopRite/Fairway Banners: Spread across New Jersey (26), New York (6), Maryland (1), and Pennsylvania (1).
• Gourmet Garage Specialty Markets: 3 locations in New York City.

Finance: draft 13-week cash view by Friday.

Village Super Market, Inc. (VLGEA) - Canvas Business Model: Key Resources

You're looking at the hard assets and foundational relationships that let Village Super Market, Inc. (VLGEA) operate and compete. These aren't just line items; they are the engines of the business.

The most critical non-physical asset is the relationship with the cooperative. You need to know that Village Super Market, Inc. is the second-largest member of Wakefern Food Corporation. This membership is key because it grants access to massive scale in purchasing and distribution. As of the end of fiscal 2025, Village Super Market, Inc. held a 12.9% ownership stake in Wakefern's outstanding stock.

Your next focus should be on the physical footprint and the associated brands. The company's physical store network spans four states, anchored by the core ShopRite banner but diversified with the New York City specialty formats. Here's the breakdown of their operational locations as of late 2025:

• Total Supermarkets Operated: 34
• Total Specialty Markets Operated: 3
• Total Locations: 37

The real estate portfolio is built around modern, larger-format stores, which is a direct response to modern grocery competition. These locations are designed to carry a wider assortment, including services like in-store pharmacies. The average size reflects this strategy.

The brand portfolio is a mix of the cooperative's primary banner and the acquired specialty brands. You see these names on the storefronts and on the private-label products they push, like Wholesome Pantry or Bowl & Basket. The key brands Village Super Market, Inc. operates under are:

• ShopRite supermarkets
• Fairway Market supermarkets
• Gourmet Garage specialty markets

Finally, let's talk about liquidity. You need to know they have ready cash, and a significant portion of that is held directly within the cooperative structure, which is a unique feature of this business model. While total Cash and Cash Equivalents at the end of fiscal 2025 were $110,699 thousand, the specific resource you asked about-the readily accessible funds-is the amount held as demand deposits at Wakefern. That figure stands at $92 million. That's cash they can deploy or use to manage working capital right away.

Village Super Market, Inc. (VLGEA) - Canvas Business Model: Value Propositions

Full-service grocery with fresh produce, meat, deli, and in-store pharmacies

• The Fresh category, encompassing produce, meat, deli, and bakery, accounted for 35.9% of total sales in fiscal year 2025.
• Fiscal year 2025 Fresh sales reached $833.0M.
• Pharmacy sales represented 4.0% of total sales in fiscal year 2025.
• For the first quarter ended October 25, 2025, same store sales growth was attributed in part to higher fresh and pharmacy sales.
• The company operates 34 supermarkets and three Gourmet Garage specialty markets.

Competitive pricing leveraging Wakefern's massive buying power

• Village Super Market, Inc. is the second-largest member of the Wakefern Food Corporation cooperative.
• Wakefern is the nation's largest retailer-owned food cooperative.
• The company competes by offering competitive pricing.
• In the 13 weeks ended October 25, 2025, Gross profit as a percentage of sales decreased due primarily to lower patronage dividends and other rebates received from Wakefern by 0.28%.

Convenience via digital ordering for pickup or home delivery

• Same store digital sales increased by 10% in fiscal year 2025.
• For the quarter ended October 25, 2025, same store digital sales increased by 14%.
• Digital sales growth was reported at 9% in the second quarter of 2025.
• Online grocery ordering for in-store pick up or home delivery is available in all ShopRite stores.

High-quality, competitively priced own-brand products (Wholesome Pantry, Bowl & Basket)

Membership in Wakefern provides access to private-label brands including Wholesome Pantry and Bowl & Basket.

Enhanced shopping experience in new, modernized store formats

The capital expenditure budget for fiscal year 2025 was $75 million, focused on replacing older stores.

Village Super Market, Inc. (VLGEA) - Canvas Business Model: Customer Relationships

You're looking at how Village Super Market, Inc. keeps its customers coming back across its 34 ShopRite and Fairway supermarkets and three Gourmet Garage specialty markets. It's all about tying the physical experience to digital convenience.

Loyalty programs: ShopRite Price Plus and Fairway Insider cards

The ShopRite Price Plus and Fairway Insider customer loyalty programs are central here. These cards let Village Super Market offer continuity programs, focus on target marketing initiatives, and attach digital coupons directly to a customer's loyalty card. This direct link between the card and the transaction is how they track engagement, even if we don't have the exact member count right now. The success of this structure is visible in the overall digital lift the company is seeing.

High-touch, in-store customer service and localized merchandising

The in-store experience remains a core differentiator, especially given the competitive landscape. Village Super Market competes by providing a superior customer service experience, competitive pricing, and a broad range of consistently available quality products. For the fiscal year ended July 26, 2025, Center Store (packaged goods) accounted for 59.7% of sales, while the Fresh departments (produce, meat, deli, bakery) made up 35.9% of sales. This focus on fresh categories requires strong localized merchandising. Customer loyalty metrics for these fresh sections showed a repeat customer rate of 62.4% as of 2024, with a customer satisfaction score of 4.6/5. That's defintely a strong base to build on.

Digital engagement through the ShopRite and Fairway mobile apps

Digital engagement is clearly accelerating the relationship. The company has invested in e-commerce capabilities, providing online ordering, curbside pickup, and home delivery in selected markets for both banners. The growth in digital sales proves customers are using these tools. For the full fiscal year 2025, same-store digital sales increased by a strong 10%. Looking at the most recent quarter ending October 25, 2025, same store digital sales increased even more robustly by 14% year-over-year. Still, as of 2024, the company's online grocery market penetration was 4.7%, which suggests there's plenty of room to grow compared to the industry average of 8.3%.

Here's a snapshot of that digital momentum:

The ShopRite app and the Fairway app are the primary conduits for this service, alongside shoprite.com and fairwaymarket.com. The ShopRite Order Express app also lets customers pre-order deli, catering, and specialty cakes.

Targeted marketing initiatives based on loyalty data

The data harvested from the Price Plus and Insider cards fuels targeted marketing. This allows Village Super Market to offer discounts and attach digital coupons directly to a customer's card, making promotions highly relevant. This data-driven approach supports the overall sales growth; the 2.1% increase in overall same-store sales for fiscal 2025 was attributed in part to digital sales growth. The total sales for fiscal 2025 reached $2,320.69 million.

• Digital coupons attached directly to loyalty cards.
• Focus on target marketing initiatives.
• Informed merchandising based on purchase history.
• Operating and administrative expenses as a percentage of sales decreased to 23.92% in fiscal 2025 from 24.34% in fiscal 2024, showing efficiency in marketing/admin spend.

Finance: draft the Q2 FY2026 marketing ROI analysis by end of January.

Village Super Market, Inc. (VLGEA) - Canvas Business Model: Channels

You're looking at the physical and digital footprint Village Super Market, Inc. (VLGEA) uses to reach its customers as of late 2025. The company relies on a mix of established supermarket locations and growing digital fulfillment options.

Village Super Market, Inc. (VLGEA) operates a total of 37 stores across its banners as of the end of fiscal year 2025. This physical network is the foundation of its channel strategy.

The company's physical channel is supplemented by a significant digital presence, which is showing strong growth.

• Same store digital sales growth for the full fiscal year 2025 was 10%.
• Same store digital sales growth for the first quarter ended October 25, 2025, was 14%.
• Same store digital sales growth for the fourth quarter ended July 26, 2025, was 11%.

The digital channels are integrated across the primary banners, supporting both pickup and delivery fulfillment methods.

• Online grocery ordering for in-store pickup or home delivery is available in all ShopRite stores.
• Online ordering for home delivery is available in all Fairway stores.
• E-commerce platforms include shoprite.com and fairwaymarket.com.
• The company also operates online stores through gourmetgarage.com.

For digital fulfillment, Village Super Market, Inc. (VLGEA) utilizes:

Curbside pickup and home delivery services are offered across the ShopRite and Fairway banners, using the respective apps or third-party service providers for execution. The digital channel sales are recognized upon pickup in-store or upon delivery to the customer. The Watchung, NJ replacement store opening in April 2025 contributed to sales increases, which were partially driven by digital sales growth. Finance: draft 13-week cash view by Friday.

Village Super Market, Inc. (VLGEA) - Canvas Business Model: Customer Segments

You're looking at the core groups Village Super Market, Inc. (VLGEA) targets across its banners in the Mid-Atlantic. The business model clearly segments its approach based on geography and shopper need, which you can see reflected in the sales mix.

The bulk of the business serves the mass-market, value-conscious consumers in the Mid-Atlantic region, primarily through the ShopRite banner. This segment is the foundation, driving the overall scale. For fiscal year 2025, Village Super Market, Inc. generated total sales of $2,320.69 million. The performance of these core stores is what matters most for stability, evidenced by the 2.1% increase in same store sales for fiscal year 2025.

The focus on convenience is a clear growth vector, targeting convenience-focused shoppers using digital ordering and delivery. This is where the investment in technology pays off in customer capture. For the first quarter ended October 25, 2025, same store digital sales showed robust growth, increasing 14% year-over-year. This digital channel, available in all ShopRite stores for pickup or delivery, is a key driver for same store sales growth.

Next, you have the specialty and urban consumers (served by Fairway and Gourmet Garage). These banners cater to a different demographic, likely with higher price elasticity but seeking unique assortments. Village Super Market, Inc. operates three Gourmet Garage specialty markets in New York City and also uses the Fairway banner, alongside its 34 supermarkets in New Jersey, New York, Maryland, and Pennsylvania.

Finally, the segment focused on local families seeking a full-service grocery and pharmacy offering is served by the comprehensive nature of the ShopRite stores. These locations are designed to be one-stop shops. The data shows that fresh categories and pharmacy sales are significant contributors to same store sales increases. The company makes sure these locations offer array of in-store services to meet diverse needs.

Here's a look at how the revenue is currently distributed across the product categories that serve these different customer needs:

The full-service nature of the ShopRite banner is supported by the following in-store capabilities:

• Full-service pharmacies available in many locations.
• Prepared-foods departments.
• Floral shops and catering services.
• Loyalty programs like ShopRite Price Plus and Fairway Insider for targeted value.

To be fair, the company operates across a diverse footprint, with 26 supermarkets in New Jersey, 6 in New York, 1 in Maryland, and 1 in Pennsylvania, all under the ShopRite and Fairway banners. Finance: draft 13-week cash view by Friday.

Village Super Market, Inc. (VLGEA) - Canvas Business Model: Cost Structure

The cost structure for Village Super Market, Inc. (VLGEA) is heavily weighted toward the cost of the product itself, which is typical for a grocer operating on thin margins. This primary cost is managed through its relationship with its principal supplier and cooperative, Wakefern.

Cost of Goods Sold (COGS) is the largest component, mitigated by cooperative purchasing. For the fiscal year ended July 26, 2025, the Gross Profit as a percentage of sales was 28.57%. This implies that COGS represented approximately 71.43% of total sales for FY2025. Village Super Market, Inc. mitigates this large outflow through its participation in Wakefern, which provides patronage dividends and rebates that positively impact the gross margin. For instance, in FY2025, higher patronage dividends and rebates from Wakefern offset some margin pressure by 0.07% of sales.

Operating and Administrative Expenses: Adjusted 23.95% of sales in FY2025. The total Operating and administrative expense as a percentage of sales for the 52 weeks ended July 26, 2025, was 23.92%. The Adjusted operating and administrative expense was 23.95% of sales in fiscal 2025, an improvement from 24.30% in fiscal 2024. This leverage effect was partly due to sales growth on fixed-like costs.

Labor costs for the 91% unionized workforce. While the specific unionization percentage is not available in the latest filings, labor costs are a significant driver within Operating and Administrative Expenses. For the 13 weeks ended October 25, 2025, lower employee costs were cited as a primary reason for the improvement in Adjusted operating and administrative expenses to 24.15% of sales, down from 24.66% in the prior year period. Similarly, for the full fiscal year 2025, lower employee costs contributed to the decrease in Adjusted operating and administrative expenses.

Capital Expenditures: Budgeted $75 million for FY2026 for store replacement. Village Super Market, Inc. has a planned capital expenditure budget of $75,000,000 for fiscal 2026. This spending is earmarked for the construction of a replacement store in East Orange, NJ, expected to open in fiscal 2026, and another replacement store expected to open in fiscal 2027, alongside other remodels and upgrades. For context, capital expenditures used to fund operations during fiscal 2025 totaled $58,765 thousand.

Occupancy costs for the large-format retail footprint. Occupancy and facility costs are a key component of the fixed operating base. The company benefited from sales leverage on occupancy and facility costs, which contributed 0.13% to the decrease in Adjusted operating and administrative expenses as a percentage of sales for the 39 weeks ended April 26, 2025.

Here is a summary of key cost-related financial figures from the latest available data:

The primary cost drivers and related financial impacts include:

• Sales leverage on occupancy and facility costs reduced Adjusted O&A by 0.13% (39 weeks ended April 26, 2025).
• Lower employee costs reduced Adjusted O&A by 0.16% for the full fiscal year 2025.
• The company's investment in Wakefern was $32,207 at July 26, 2025.
• Depreciation and amortization expense rose in fiscal 2025 due primarily to capital expenditures.

Village Super Market, Inc. (VLGEA) - Canvas Business Model: Revenue Streams

You're looking at the core ways Village Super Market, Inc. (VLGEA) brings in money, which is pretty standard for a major supermarket operator, but with that key cooperative relationship factored in. Honestly, it's all about the groceries, but those Wakefern arrangements are a significant, albeit sometimes variable, part of the picture.

The primary engine for revenue is the Retail Sales of Food and Non-Food Products. For the full fiscal year 2025, Village Super Market, Inc. recorded total sales of $2.321 billion, which translates more precisely to $2,320.69 million. This growth came from a 2.1% rise in same store sales plus the impact of new replacement stores opening during the year.

The composition of those sales shows where the bulk of the customer spending lands. It's a classic grocery mix, but you can see the emphasis:

• Center Store (packaged goods) sales: 59.7% of total sales.
• Fresh (produce, meat, deli, bakery) sales: 35.9% of total sales.
• Pharmacy sales: 4.0% of total sales.

To give you the actual dollar figures for fiscal 2025 based on the $2,320.69 million total, here's the breakdown. This is the money coming directly from customers walking into the ShopRite, Fairway, or Gourmet Garage doors, or ordering online:

Note that the sum of the calculated segments is slightly different from the total due to rounding in the source percentages, but the figures reflect the stated proportions. The $2,320.69 million total revenue figure is the official reported number.

The second major revenue stream, which is tied directly to Village Super Market, Inc.'s relationship with Wakefern Food Corporation, comes from cooperative benefits. You have to watch this one closely, as it can fluctuate and impact gross margin significantly.

• Patronage dividends and rebates received from Wakefern: These are recognized as a reduction in cost of sales when related merchandise is sold or terms are met. As of the end of fiscal 2025 (July 26, 2025), the patronage dividend receivable based on estimates was $14,144 thousand (or about $14.14 million). Lower patronage dividends were cited as a primary reason for gross profit margin compression in the first quarter of fiscal 2026.

Also, remember that Village Super Market, Inc. holds a 12.9% ownership stake in Wakefern as of July 26, 2025, which is the source of these benefits. This structure is defintely a key part of their financial model.