Retailers' cooperative
Encyclopedia
- Marketing cooperative links here; see also Agricultural marketing cooperative
A retailers' cooperative is a type of cooperative
Cooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
which employs economies of scale
Economies of scale
Economies of scale, in microeconomics, refers to the cost advantages that an enterprise obtains due to expansion. There are factors that cause a producer’s average cost per unit to fall as the scale of output is increased. "Economies of scale" is a long run concept and refers to reductions in unit...
on behalf of its retailer
Retailing
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
members. Retailers' cooperatives use their purchasing power
Purchasing power
Purchasing power is the number of goods/services that can be purchased with a unit of currency. For example, if you had taken one dollar to a store in the 1950s, you would have been able to buy a greater number of items than you would today, indicating that you would have had a greater purchasing...
to acquire discounts from manufacturers and often share marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
expenses. It is common for locally owned grocery stores
Supermarket
A supermarket, a form of grocery store, is a self-service store offering a wide variety of food and household merchandise, organized into departments...
, hardware store
Hardware store
Hardware stores, sometimes known as DIY stores, sell household hardware including: fasteners, hand tools, power tools, keys, locks, hinges, chains, plumbing supplies, electrical supplies, cleaning products, housewares, tools, utensils, paint, and lawn and garden products directly to consumers for...
s and pharmacies
Pharmacy
Pharmacy is the health profession that links the health sciences with the chemical sciences and it is charged with ensuring the safe and effective use of pharmaceutical drugs...
to participate in retailers' cooperatives. Consumers' cooperative
Consumers' cooperative
Consumer cooperatives are enterprises owned by consumers and managed democratically which aim at fulfilling the needs and aspirations of their members. They operate within the market system, independently of the state, as a form of mutual aid, oriented toward service rather than pecuniary profit...
s, sometimes referred to as retail cooperatives, should be distinguished from retailers' cooperatives.
Examples
- Mitre 10Mitre 10Mitre 10 is the trading name of retail and trade hardware store chains, over 700 locations throughout of Australia. Operations are based on a co-operative system where the store owners are members of the national group and each has voting rights...
is a hardware group in Australia and New Zealand. - Ace HardwareAce HardwareAce Hardware Corporation is a hardware cooperative based in Oak Brook, Illinois, United States. ACE Hardware Corporation, with 4,444 stores, does over $3 billion in retail hardware sales annually down from its peak of $12.5 billion in 2007.-History:...
- Do It BestDo It BestDo It Best Corp. is a hardware store retailers' cooperative. It was founded as Hardware Wholesalers, Inc in 1945 in Fort Wayne, Indiana by Arnold H. Gerberding along with 75 dealers who would become members and invest $1,000 in exchange for shares of stock in the company. Donald Wolf was CEO...
- True ValueTrue ValueTrue Value Company is a retailer-owned hardware cooperative with over 5,000 independent retail locations worldwide. Members of the True Value cooperative own their individual stores and operate independently of True Value Company....
- Best WesternBest WesternBest Western International, Inc. is the third largest hotel chain, with over 4,195 hotels in nearly 80 countries. The chain, with its corporate headquarters in Phoenix, Arizona, operates more than 2,000 hotels in North America alone. Best Western has a marketing program involving placement of free...
- E.LeclercE.LeclercE.Leclerc is a French hypermarket chain, headquartered in Ivry-sur-Seine. The chain enables semi-independent stores to operate under the Leclerc brand.E.Leclerc was established on 1st January 1948....
- Les MousquetairesLes MousquetairesLes Mousquetaires is a privately owned retailing symbol group based in France and operating internationally. Its head office is in Bondoufle, France....
- EdekaEDEKAThe Edeka Group is the largest German supermarket corporation, currently holding a market share of 26%. Founded in 1898, it consists today of several cooperatives of independent supermarkets all operating under the umbrella organisation Edeka Zentrale AG & Co KG, with headquarters in Hamburg...
- ShopRite (United States)ShopRite (United States)ShopRite Supermarkets is a retailers' cooperative chain of supermarkets in the northeastern United States, with stores in New Jersey, New York, Connecticut, Delaware, Maryland, and Pennsylvania...
- FoodstuffsFoodstuffsFoodstuffs is a group of three New Zealand grocery and liquor retailers' cooperatives based in Auckland, Wellington and Christchurch which collectively control an estimated 57% of the New Zealand grocery market...
- National Automotive Parts AssociationNational Automotive Parts AssociationThe National Automotive Parts Association was founded in 1925 to meet America's growing need for an auto parts distribution system. It is a retailers' cooperative that distributes parts to both corporately and independently owned auto parts stores.NAPA's parent company is Genuine Parts Company , ...
(NAPA)