Kuldip and Ajeet Sandhar ran Sandhar’s in Salters Lane, Newport, for 28 years until December last year.
Mr Sandhar's father died of cancer and the family were supported by Macmillan and decided to give something back.
Mrs Sandhar said: "My father-in-law died a few years ago and he had lung cancer.
"We had a couple of visits from Macmillan and we thought we'd do something for them, and we've been raising money for the past five years.
"We had a collection box and also sold raffle tickets and all the money has gone to Macmillan.
"We are very proud of the £1,050 we raised, a lot of people who came into the shop donated, so we'd like to thank everyone who came in.
"We loved every minute of running Sandhar's."
Kate Thomas, fundraising manager for Macmillan Shropshire, said: "We are delighted to receive this fantastic donation from Sandhar’s and sincerely appreciate their support of Macmillan.
"The donation will go to Macmillan Cancer Support in Shropshire to provide essential Macmillan services in the region. Macmillan is here to help people affected by cancer, to find the best way through and live life as fully as they can."