'The Love Wem, Love Shops' campaign has launched and will run until November 22.
More that 40 shops and businesses are involved in the initiative which includes voucher prizes totalling £300 for winners of a special competition.
Wem mayor and trader, Councillor Phil Glover, said that the campaign had been set up by the Wem Economic Forum which had provided the funding.
Those taking part have to spend a minimum of £1 in 10 different shops or stalls in Wem and collect stickers for a leaflet as they shop. The full leaflet can then be entered into a draw to win £150, £100 or £50.
Councillor Glover, who owns Fruitful Deli on the High Street, said the town's shops, businesses and market traders had really embraced the idea.
"Lockdown was really difficult for our shops and businesses. We were lucky here because we could continue in the form of deliveries, which we had never done before.
"Now restrictions have eased we want to encourage people to come out into the shops again and to get used to shopping locally.
"We have noticed that more people are choosing to stay in Wem to shop. It could be that they don't want to go into a larger town or a big supermarket or that for those working from home it is easier for them to come into Wem.
"We would love to encourage more people to shop local and see the variety of shops and market stalls we have here. There are 6,000 people who live in Wem.
"Our food shops pride themselves on stocking local produce and you certainly get excellent customer service."
He said that all the stores had invested in Covid-19 equipment so that people could shop safely.
Completed draw leaflets with a name and contact details included can be dropped off at the Co-op, Fruitful Deli or Wem Town Hall.