It has pledged to put aside 0.5% of every £1 spent at the firm's Saltash and Cullompton depots as part of the scheme.
So a retailer spending £10,000 a week would see its capital fund grow by £50 a week yielding more than £2,500 a year.
Retailers would have to buy fresh sandwiches, fresh milk, fresh produce, and chilled foods on a daily basis to qualify for the scheme labelled FUNd$4all, which opens on 11 April.
The money can be built up over a maximum period of two years, at which point it has to be spent.
Retailers will then be able to put the funds towards improving their stores.
John Pattison, Appleby Westward's managing director, said that the business had spent the past six months investing heavily in the chilled supply chain, and the new incentive scheme would help encourage a regular order pattern from retailers in the chilled sector.
"This initiative is potentially worth over £400,000 a year in capital investments," he added.