The cooperative was co-founded 8 November 1905 in Stockholm by Anna Whitlock and Ina Almén as an effort to ensure good quality of the food in the city's groceries.
At the time it was not uncommon for grocers to mask bad food by such means as, for example, mixing chalk into sugar.
The idea of Svenska Hem was a cooperative managed by women, which was to provide healthy food with high quality at reasonable prices.
The cooperative was met with resistance and a boycott by the Stockholm Grocery Society, but survived and enjoyed success.
It had 3300 female cooperative members, many of whom were famous, such as Selma Lagerlöf, Ellen Key, Emilia Broomé, Anna Branting, Elin Wägner, Karolina Widerström, Hanna Pauli, Karin Larsson and Harriet Bosse.