A consumers' co-operative is an enterprise owned by consumers and managed democratically and that aims at fulfilling the needs and aspirations of its members. Such co-operatives operate within the market system , independently of the state, as a form of mutual aid , oriented toward service rather than pecuniary profit. Many cooperatives, however, do have a degree of profit orientation. Just like other corporations, some cooperatives issue dividends to owners based on a share of total net profit or earnings (all owners typically receive the same amount); or based on a percentage of the total amount of purchases made by the owner. Regardless of whether they issue a dividend or not, most consumers’ cooperatives will offer owners discounts and preferential access to goods and services.
42-584: United Co-operatives Limited , or simply United Co-op , was a regional consumer co-operative in the United Kingdom , until its merger with the Co-operative Group in 2007. The society operated across Yorkshire , the North West and North Midlands of United Kingdom. In September 2002, it came about from the merger of United NorWest and Yorkshire Co-operative Society. United Norwest, in turn, arose from
84-489: A distinct logo, that was not to be confused with the Co-operative Group 's own chain of pharmacies and food stores, which adopt a slightly different logo and fascia. However, after the merger former United sites adopted the new branding. In September 2006, members voted for a merger with the smaller Sheffield Co-operative Society , giving United a greater presence in South Yorkshire . On 11 December 2006, members voted for
126-634: A food cooperative directory. Seattle-based R.E.I. , which specializes in outdoor sporting equipment, is the largest consumer cooperative in the United States. Outdoor retailer Mountain Equipment Co-op (MEC) in Canada was one of that country's major consumer cooperatives. In the Canadian Prairie provinces as well as British Columbia , gas stations, lumberyards, and grocery stores can be found under
168-432: A for-profit enterprise will treat the difference between cost (including labor etc.) and selling price as financial gain for investors, the consumer owned enterprise may retain this to accumulate capital in common ownership, distribute it to meet the consumer's social objectives, or refund this sum to the consumer/owner as an over-payment. (Accumulated capital may be held as reserves, or invested in growth as working capital or
210-593: A means to achieve social reform. They believed such a development would bring benefits such as economic democracy and justice , transparency , greater product purity, and financial benefits for consumers. One of the world's largest consumer co-operative federations operates in the UK as The Co-op , which operates over 5,500 branches of 'Co-op' branded business including Co-op Food (the UK's sixth largest supermarket chain), Co-op Funeralcare , Co-op Travel , Co-op Legal Services , and Co-op Electrical . The Co-operative Group
252-590: A merger in 1991 between an earlier United Co-operative and the Norwest Pioneers, which had the Rochdale Pioneers as a direct predecessor. Rochdale Pioneers was the prototypical consumer co-operative, formed in 1844. The original United Co-operative was founded in 1983 from a merger of the Greater Lancastria Society and several other societies. The Greater Lancastria itself formed in 1973 after
294-706: A merger with Leeds Co-operative Society , which has similar statistics to Sheffield Co-op; this was confirmed with a second vote in January 2007. On 29 July 2007, the two completed the merger. Later in 2007, United Co-operatives merged with the Co-operative Group and ceased to exist as an independent society. Normid was the name the United Co-operatives used for their largest stores, located in Northern England . Normid superstores sold food, DIY products, electrical items and housed concessions such as Dolphin bathrooms. By
336-778: A mixture of co-operative philosophy and practical advice about running a shop using cooperative principles. The first successful co-operative was the Rochdale Society of Equitable Pioneers , established in England in 1844. This became the basis for the development and growth of the modern cooperative movement. As the mechanization of the Industrial Revolution forced more skilled workers into poverty, these tradesmen decided to band together to open their own store selling food items they could not otherwise afford. With lessons from prior failed attempts at co-operation in mind, they designed
378-452: A retailers' cooperative. Retailers' cooperatives are governed by democratic member control, which generally means one vote per member. Some firms, such as E. Leclerc , are able to make decisions in this fashion, with each member business only receiving one vote. For many retailer co-ops, however, it is difficult to achieve a democratic standard. Since the members are businesses rather than individuals, offering one vote per member will leave
420-546: A series of mergers of many societies in the north west of England. The key businesses of the Society were food retailing, travel retail, car dealerships (Sunwin Motor Group), pharmacies and funerals. The underperforming non-food department stores, most of which were inherited via Yorkshire Co-operatives, were closed or sold-off. The former Normid chain of superstores was owned by the society. United's pharmacies and food stores had
462-479: A vision that went far beyond the simple shop with which they began: That as soon as practicable, this society shall proceed to arrange the powers of production, distribution, education, and government, or in other words to establish a selfsupporting home-colony of united interests, or assist other societies in establishing such colonies. Cooperative Federalists , a term coined in the writings of Beatrice Webb , advocated forming federations of consumer cooperatives as
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#1732855521540504-561: Is by far the largest of these businesses, itself having over 4,500 outlets and operating the collective buying group . In Switzerland , the two largest supermarket chains Coop and Migros are both co-operatives and are among the country’s largest employers. In Ireland , the Dublin Food Coop has been in operation since 1983. In Scandinavia , the national cooperatives Norway , Sweden , and Denmark joined as Coop Norden in January 2002, but separated again in 2008. In Italy ,
546-432: Is essentially a group of independently owned businesses that pool their resources to purchase in bulk, usually by establishing a central buying organization, and engage in joint promotion efforts. It is common for locally owned grocery stores , hardware stores , and pharmacies to participate in retailers' cooperatives. A consumers' cooperative , sometimes referred to as a retail cooperative, should be distinguished from
588-408: Is one of the largest cooperatives in the world. In addition to retail co-ops there are medical, housing, and insurance co-ops alongside institutional (workplace based) co-ops, co-ops for school teachers, and university-based co-ops. Approximately one in five of all Japanese households belongs to a local retail co-op and 90% of all co-op members are women. Nearly six million households belong to one of
630-764: Is open to everybody. It has franchises under the brand Aliprox not owned by Eroski but sharing its product range. Its origin is in the Basque Country . In its process of expansion, it merged with the Valencia-based cooperative Consum , but the merger dissolved in 2005. It has expanded across Spain and entered France and Gibraltar. After the Spanish crisis of 2008 , Eroski sold several of its supermarkets and hypermarkets. The Co-op Bookshop sold textbooks both online and on university campuses. It also owned Australian Geographic . In 2020 its retail stores closed and its online store
672-560: Is wholly owned by its customers, reported at 125,000 in 2012. Japan has a large and well-developed consumer cooperative movement with more than 14 million members. Retail co-ops alone had a combined turnover of 2.5 trillion Yen (21 billion U.S. Dollars) in April, 2003. Co-op Kobe (コープこうべ) in the Hyōgo Prefecture is the largest retail cooperative in Japan and, with more than 1.2 million members,
714-727: The Co-Op brand . All credit unions in the United States and Canada are financial cooperatives. Tim Worstall has called the Vanguard Group a customer owned cooperative, since the owners of Vanguard funds are the funds' investors. In Puerto Rico , several Supermercados Fam Coop operate. Retailers%27 cooperatives A retailers' cooperative is a type of cooperative which employs economies of scale on behalf of its retailer members. Retailers' cooperatives use their purchasing power to acquire discounts from manufacturers and often share marketing expenses. A retailers' cooperative
756-545: The Coop Italia chain formed by many sub-cooperatives controlled 17.7% of the grocery market in 2005. In Finland , the S Group is owned by 22 regional cooperatives and 19 local cooperative stores, which in turn are owned by their customers. In 2005 the S Group overtook its nearest rival Kesko Oyj with a 36% share of retail grocery sales compared to Kesko's 28%. In France , Coop Atlantique owns 7 hypermarkets, 39 supermarkets, and about 200 convenience stores. In Germany ,
798-690: The ReWe Group is a diversified holding company of consumer cooperatives that includes thousands of retail stores, discount stores, and tourism agencies. It ranks as the second largest supermarket chain in Germany and in the top ten cooperative groups in the world. In Spain, Eroski is a supermarket chain within Mondragón Corporación Cooperativa . As a worker-consumer hybrid , some of the personnel are hired workers and some are owner-workers. The owners include workers and mere consumers, but buying
840-411: The bylaws or organizing document of the cooperative. Most consumer cooperatives hold regular membership meetings (often once a year). As mutually owned businesses, each member of a society has a shareholding equal to the sum they paid in when they joined. Large consumers' co-ops are run much like any other business and require workers, managers, clerks, products, and customers to keep the doors open and
882-401: The labour movement . As employment moved to industrial areas and job sectors declined, workers began organizing and controlling businesses for themselves. Workers cooperatives were originally sparked by "critical reaction to industrial capitalism and the excesses of the industrial revolution." The formation of some workers cooperatives was meant to "cope with the evils of unbridled capitalism and
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#1732855521540924-591: The "Network Movement" ("Tokyo Seikatsusha (it means "Living Persons") Network", "Kanagawa Network Movement", and so on). They depend on consumers movement, feminism, regionalism, and prefer to anti-nuclear. These parties keep small but steady sections in prefecture and municipal assemblies. In the United States, the PCC (Puget Consumers Cooperative) Natural Markets in Seattle is the largest consumer-owned food cooperative . The National Cooperative Grocers Association maintains
966-610: The 1,788,000 Han groups . These consist of a group of five to ten members in a neighbourhood who place a combined weekly order which is then delivered by truck the following week. A strength of Japanese consumer co-ops in recent years has been the growth of community supported agriculture in which fresh produce is sent direct to consumers from producers without going through the market. Some of co-op organisations, for example, in Tokyo metropolis and Kanagawa prefecture , manage their local political parties from 1970's; generally names itself as
1008-693: The Scottish Co-operative Wholesale Society (1973) and the South Suburban Co-operative Society (1984). Consumer cooperatives utilize the cooperative principle of democratic member control , or one member/one vote. Most consumer cooperatives have a board of directors elected by and from the membership. The board is usually responsible for hiring management and ensuring that the cooperative meets its goals, both financial and otherwise. Democratic functions, such as petitioning or recall of board members, may be codified in
1050-489: The business running. In smaller businesses the consumer/owners are often workers as well. Consumers' cooperatives can differ greatly in start up and also in how the co-op is run but to be true to the consumers' cooperative form of business the enterprise should follow the Rochdale Principles . The customers or consumers of the goods and/or services the cooperative provides are often also the individuals who have provided
1092-494: The capital required to launch or purchase that enterprise. The major difference between consumers' cooperatives and other forms of business is that the purpose of a consumers' cooperative association is to provide quality goods and services at the lowest cost to the consumer/owners rather than to sell goods and services at the highest price above cost that the consumer is willing to pay. In practice consumers' cooperatives price goods and services at competitive market rates. Where
1134-456: The cooperative as would appear in any other company. This is one critique of consumer cooperatives in favor of worker cooperatives . Many advocates of the formation of consumer cooperatives—from a variety of political perspectives—have seen them as integral to the achievement of wider social goals. For example, the founding document of the Rochdale Pioneers , who established one of the earliest consumer cooperatives in England in 1844, expressed
1176-441: The cooperative movement stemmed from such socialist writers as Robert Owen and Charles Fourier . Robert Owen , considered by many as the father of the cooperative movement, made his fortune in the cotton trade, but believed in putting his workers in a good environment with access to education for themselves and their children. These ideas were put into effect successfully in the cotton mills of New Lanark , Scotland , where
1218-421: The early 19th century and by 1830 there were several hundred co-operatives. William King made Owen's ideas more workable and practical. He believed in starting small, and realized that the working classes would need to set up co-operatives for themselves, so he saw his role as one of instruction. He founded a monthly periodical called The Co-operator , the first edition of which appeared on 1 May 1828. It gave
1260-619: The first co-operative store was opened. Spurred on by this success, Owen had the idea of forming "villages of co-operation" where workers would drag themselves out of poverty by growing their own food, making their own clothes, and ultimately becoming self-governing. He tried to form such communities in Orbiston, Scotland and in New Harmony, Indiana in the United States of America , but both communities failed. Similar early experiments were made in
1302-407: The form of cooperative wholesale societies , through which consumers' cooperatives collectively purchase goods at wholesale prices and, in some cases, own factories. Alternatively, they may be members of cooperative unions . Consumer cooperation has been a focus of study in the field of cooperative economics . Consumer cooperatives rose to prominence during the industrial revolution as part of
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1344-628: The insecurities of wage labor." The first documented consumer cooperative was founded in 1769, in a barely-furnished cottage in Fenwick, East Ayrshire , when local weavers manhandled a sack of oatmeal into John Walker's whitewashed front room and began selling the contents at a discount, forming the Fenwick Weavers' Society . In the decades that followed, several cooperatives or cooperative societies formed including Lennoxtown Friendly Victualling Society, founded in 1812. The philosophy that underpinned
1386-539: The larger member businesses underrepresented. If the number of votes is based on the size of the business, there is a risk of all smaller businesses within the cooperative being outvoted by a larger business. A democratic solution that many retailers' cooperatives employ is an increase in votes based on business size, up to a certain point, say 5 or 10 votes. This way, the degree of representation for member businesses varies. In order to lower costs, retailers' cooperatives establish central buying locations, providing them with
1428-555: The merger of many independent retail societies, and their wholesale societies and federations. In 1863, twenty years after the Rochdale Pioneers opened their co-operative, the North of England Co-operative Society was launched by 300 individual co-ops across Yorkshire and Lancashire . By 1872, it had become known as the Co-operative Wholesale Society (CWS). Through the 20th century, smaller societies merged with CWS, such as
1470-506: The now-famous Rochdale Principles , and over a period of four months they struggled to pool one pound sterling per person for a total of 28 pounds of capital. On December 21, 1844, they opened their store with a very meagre selection of butter, sugar, flour, oatmeal and a few candles. Within three months, they expanded their selection to include tea and tobacco, and they were soon known for providing high quality, unadulterated goods. The Co-operative Group formed gradually over 140 years from
1512-405: The opportunity to purchase in bulk. Retailers' cooperatives also engage in group advertising and promotion, uniform stock merchandising, and private branding. This increases consumer recognition of brands and is beneficial for the stores under a franchise. The aim of the cooperative is to improve buying conditions for its members, which are retail businesses in this case. The incentive to remain in
1554-411: The purchase of capital assets such as plant and buildings.) While some claim that surplus payment returns to consumer/owner patrons should be taxed the same as dividends paid to corporate stock holders, others argue that consumer cooperatives do not return a profit by traditional definition, and similar tax standards do not apply. Since consumer cooperatives are run democratically, they are subject to
1596-406: The same problems typical of democratic government. Such difficulties can be mitigated by frequently providing member/owners with reliable educational materials regarding current business conditions. In addition, because a consumer cooperative is owned by the users of a good or service as opposed to the producers of that good or service, the same sorts of labor issues may arise between the workers and
1638-551: The stadium ultimately forcing Bolton Wanderers to move away from the site. The store closed in 1997, shortly after Bolton's move to the Reebok Stadium. The site was derelict for several years and demolished in 2001, to make way for a new retail park, including an Asda Superstore. Other stores were located in Blackpool , Crewe , Wigan , Widnes , St Helens , Talke (near Kidsgrove ), Chorley , Hindley and Blackburn . Normid 1
1680-463: The time of United's merger with the Co-operative Group, the business had decided to concentrate on smaller stores and supermarkets and planned to rebrand the remaining stores as 'The Co-operative Food'. The flagship Normid store was at Burnden Park , Bolton , home of Bolton Wanderers Football Club and Normid was shirt sponsor of Bolton Wanderers from 1986 until 1990. However United Co-operatives objected legally to any development or modernisation of
1722-998: Was based in Crewe, Normid 2 Burslem, Stoke-on-Trent, Normid 3 was Milehouse, Newcastle-under-Lyme. Normid 4 Tunstall, Stoke-on-Trent, Normid 5 was the Hypermarket at Talke. Normid 6 and 7 were Macclesfield and Longton, Stoke-On-Trent. Consumers%27 cooperative Consumers' cooperatives often take the form of retail outlets owned and operated by their consumers, such as food co-ops . However, there are many types of consumers' cooperatives, operating in areas such as health care, insurance, housing , utilities and personal finance (including credit unions ). In some countries, consumers' cooperatives are known as cooperative retail societies or retail co-ops , though they should not be confused with retailers' cooperatives , whose members are retailers rather than consumers. Consumers' cooperatives may, in turn, form cooperative federations . These may come in
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1764-497: Was sold to Booktopia . The Wine Society (Australian Wine Consumers’ Co-operative Society Limited), established in 1946, now has more than 58,000 members. It sources and sells premium wines under the Society label, runs comprehensive wine education courses, and recognises excellence from young winemakers. Bank Australia was formed in 2011 as the Members and Education Credit Union. It changed its name to Bank Australia in 2015. The bank
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