The Co-operative Group
Encyclopedia
The Co-operative Group Ltd. is a United Kingdom
consumer cooperative with a diverse range of business interests. It is co-operatively run and owned by its members. It is the largest organisation of this type in the world, with over 5.5 million members, who all have a say in how the business is run and how its social goals are achieved. The group comprises a family of businesses, including: Food, Travel, Financial Services, Healthcare, Funeral care, Legal Services, Motors and Online Electricals.
Membership is open to everyone, provided that they share the values and principles upon which the group was founded. Every year members receive a share of the group's profit, based on the total amount of profit made, and the amount of money they spent with the organization in that year. Its slogans are 'Good for everyone' and 'Good with food'.
The Co-operative Group has over 123,000 employees across the UK. The Group is based in Manchester
on an eight building complex, the most notable building of which is the 118m CIS Tower
. The Group is due to move into the £100m The Co-operative Group Building
at NOMA
, Manchester in 2012 - in time for their 150th anniversary in 2013.
and many independent retail societies, changing from a purely wholesale operation to a major retailer in its own right.
In 1863, the North of England Co-operative Wholesale Industrial and Provident Society Limited was launched in Manchester
by 300 individual co-operatives in Yorkshire
and Lancashire
. By 1872, it had become known as the Co-operative Wholesale Society (CWS). Throughout the 20th century, smaller societies merged with CWS, including the Scottish Co-operative Wholesale Society (SCWS) in 1973 and the London-based South Suburban Co-operative Society
in 1984.
By the 1990s, CWS's share of the grocery market had declined considerably and the viability of the co-operative business model was put in doubt. It sold its factories to Andrew Regan
in 1994 and he returned in 1997 with an audacious hostile £1.2 billion bid. There were allegations of "carpet-bagging
"—new members who joined simply to make money from the sale—and, more seriously, fraud and commercial leaks. Following the employment of a private detective and a subsequent lengthy criminal court case, Regan's bid was rejected and two senior CWS executives were dismissed and imprisoned for fraud. Regan was cleared of charges. However, the episode recharged CWS and its membership base and proved to be a catalyst for rejuvenation which is continuing today. Tony Blair
's Co-operative Commission
, chaired by John Monks
, made major recommendations for the co-operative movement, including the organization and marketing of the retail societies.
It was in this climate, following many years of aborted discussions, that CWS merged with its struggling affiliate Co-operative Retail Services
(CRS) in 2000. Its headquarters complex is situated on the north side of Manchester city centre
adjacent to the Manchester Victoria
railway station. The complex is made up of many different buildings of different periods with two notable tower blocks, New Century House and the solar panel-clad CIS Tower
. Other independent societies are part owners of the group. Representatives of the societies that part own the group are elected to the group's national board. The group manages The Co-operative brand
and the Co-operative Retail Trading Group
(CRTG), which sources and promotes goods for food stores. There is a similar purchasing group (CTTG) for co-operative travel agents.
At the start of 2007, the Group began discussions with United Co-operatives
, the UK's second-largest co-operative, on the possibility of a merger of the two societies. On 16 February 2007, the boards of both societies announced that they were to merge subject to members' approval, and on 28 July 2007 the new society came into being. At about the same time, the Group transferred the engagements of the small Scottish Nith Valley Co-operative Society which, while trading profitably, was suffering a burden with its pension fund commitments. In July 2008, the Group announced a deal to purchase the Somerfield
chain of 900 supermarkets and convenience stores for a value of at least £1.5 billion. The sale completed successfully on 2 March 2009, costing £1.57bn.
Also in 2008, the Group purchased ten convenience stores as going concerns from competitor J Sainsbury
, previously trading under the Bells and Jacksons names, in the north and east of England. In Autumn 2008, Lothian, Borders & Angus Co-operative Society
members voted to transfer of engagements to the Co-operative Group. The transfer of engagements came into effect on 13 December 2008. The Group announced in November 2008 that despite the economic downturn, half year profits had risen by 35.6 percent to £292.6 million for the six months to June 2008. In January 2009, Co-operative Financial Services and the Britannia Building Society
announced their intention to merge, subject to regulatory, and member approval. Members of the Plymouth & South West Co-operative Society joined the Co-operative Group in September 2009.
The group's reputation suffered a blow in 2007 after being fined £250,000 because 38 of its 41 stores in Sussex failed fire safety inspections. It was fined again in 2010 for £210,000 following an investigation at one of their Southampton
stores.
In May 2010, The Co-operative Group unveiled plans to build a new head office building in Manchester. The initial phase of construction of the new building has commenced at the site on Miller Street on the north side of the city centre. The project aims to reflect ethical values of the organization in its design, construction and its relationship both with employees and surrounding communities. Occupation of the new building is scheduled for mid-2012.
, based in Yorkshire
and northwest England, on 29 July 2007, reinforcing its position as the largest consumer co-operative in the world. The current simplified legal name of Co-operative Group Limited was adopted in December 2007.
The modern Co-operative Group was formed from a large range of different independent societies with separate brand identities. This led to a lack of brand consistency, tending to give an incoherent message to consumers.
In 2007, the group began a full-scale re-brand of its estate with the aim of creating a unified identity. The well-known four-leaf clover 'Co-op' brand
, which was introduced in 1967 and adjusted in 1993, along with those of most of its other businesses including Travelcare and Funeralcare, was phased out in favour of The co-operative strapline which unifies the group around one single brand.
With more than 4,000 stores and branches to convert to the new logo the process has been cited as the "largest rebranding exercise in UK corporate history."
The Co-operative Group also launched its largest ever television advertising campaign in 2009. The unusually long two and a half minute advertisement aired for the first time during Coronation Street
's 7:40 pm ad-break on ITV
. The spot, created by McCann Erickson
, features the Bob Dylan
track "Blowin' in the Wind", marking one of the rare occasions that the singer songwriter has allowed his music to be used for commercial purposes.
The Group now has 85% of the co-operative retail business in the UK and substantial shares in certain wider markets, including travel, funerals and pharmacies.
(or CFS), which is wholly owned by the Group. CFS is made up of the Co-operative Bank
, including the internet bank Smile
and the former Britannia Building Society
and the Co-operative Insurance Society; it has over four and a half million customers.
, in April 2006.
, a farmers co-operative, on 10 August 2004.
, and the remainder being closed. Many of the shops had been in poor locations and had suffered from years of under-investment. Initially, two stores were to be retained in Perth and Tunbridge Wells as a trial of a new style of department store but it was decided to close these in 2006.
However, the Group continues to operate a growing internet business retailing electrical goods and designer beds, as well as providing electrical buying, warehousing and distribution services to the wider co-operative movement, as many of the independent societies continue to operate in non-food retailing.
.
, often known as "divi", and the "divi number" becoming an integral part of British life. The way in which co-operative retail societies are run for the benefit, and on behalf of their members is something which sets them apart from their modern-day competitors. The dividend is a financial reward to members based on each member's level of trade with the society. The distribution of profits on the basis of turnover rather than capital invested is a fundamental difference between a co-operative and most private sector enterprise.
Historically, members' sales would be recorded in ledgers in society's stores and at the end of the collection period a proportional payment would be made back to the member. As the societies grew, and the number of members increased, the method of using ledgers became cumbersome. As a solution, some societies, including Co-operative Retail Services, started to issue stamps to members for qualifying transactions. Members would collect the stamps on a savings card and, when the card was complete, would use it as payment for goods or deposit into their share account.
By the late twentieth century the Co-operative Group's precursors and then the Co-operative Group were no longer paying true dividend (it had become a drain on limited resources), although several independent societies (such as Anglia Regional) continued to do so. In the late 1990s a loyalty card scheme
, in the style of the Tesco Clubcard
, was introduced which used the Dividend brand. Ironically these loyalty cards were inspired by the original co-operative dividend but were little more than marketing exercises as well as a way to gather useful customer information. Co-operative customers (not just members) could sign up and receive a swipe card to record their purchases with vouchers being sent out twice a year which could be exchanged for cash or goods.
However, in September 2006 the Co-operative Group relaunched "true" dividend whereby a proportion of the profits of the Co-operative Group are returned to members. To emphasize the change, the scheme is now called The Co-operative Membership and members earn a "share of the profits".
New members are recruited by allowing them to deduct the refundable subscription for a £1 share from their first dividend. Members can collect points to increase their share of the profits by using the services provided across the whole family of businesses.
In 2008, the dividend almost doubled to £38 million, equivalent to 2.63p per point (one point being earned for each £1 food purchase), reflecting an 8% increase in underlying profit.
Group membership increased sharply in the first year after the relaunch, to 2.5 million with many more young people being attracted to join who have an affinity with the co-operative values and principles.
In 2007, the Oxford-based Midcounties Co-operative joined the Group's membership scheme allowing its members to earn dividend at Co-operative Group stores and vice versa. It was also the first independent co-operative to adopt the new Co-operative branding
. Since then, other independent co-operatives joined the reciprocal membership dividend scheme, including Anglia Regional Co-operative Society
(2008), Southern Co-operatives
(2009), Chelmsford Star Co-operative Society
(2009) and Midlands Co-operative (2010).
CEO Peter Marks was paid a basic salary of £900,000 in 2010, with a performance-related bonus of £449,000. The basic salaries of the thirteen executives adds up to £4,071,000, with their bonuses adding up to £2,121,000.
As the UK's largest co-operative, the Group plays a key part in the co-operative movement. It is also a major sponsor of new co-operative ventures, local initiatives through Co-operative Action and Fairtrade promotion.
, which fields Coop candidates in UK national, regional and local elections on joint tickets with the Labour Party
, its sister party. In addition to core aims of furthering Cooperative values and Mutualism in Parliament and on the national stage cooperative party members, activists and representatives (MPs,MSPs,AMs and Councillors) also campaign on wider social issues, including the most recent "The Feelings Mutual" campaign. In addition The Co-operative Group facilitates, takes part in or owns services provided for other UK Consumer Cooperative Societies, supports community concerns and project and runs ethical and social campaigns/advertising and events which correspond to the interests and values of the democratic Society and the wider community.
They invested share capital to found or join the Group's wholesaler predecessors, such as the North of England Co-operative Wholesale Industrial and Provident Society and the Scottish Co-operative Wholesale Society.
As noted above, these co-operatives are represented alongside the regional boards at annual meetings and in the board of directors, and are entitled to dividends based on the amount of their purchases from the Group.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
consumer cooperative with a diverse range of business interests. It is co-operatively run and owned by its members. It is the largest organisation of this type in the world, with over 5.5 million members, who all have a say in how the business is run and how its social goals are achieved. The group comprises a family of businesses, including: Food, Travel, Financial Services, Healthcare, Funeral care, Legal Services, Motors and Online Electricals.
Membership is open to everyone, provided that they share the values and principles upon which the group was founded. Every year members receive a share of the group's profit, based on the total amount of profit made, and the amount of money they spent with the organization in that year. Its slogans are 'Good for everyone' and 'Good with food'.
The Co-operative Group has over 123,000 employees across the UK. The Group is based in Manchester
Manchester
Manchester is a city and metropolitan borough in Greater Manchester, England. According to the Office for National Statistics, the 2010 mid-year population estimate for Manchester was 498,800. Manchester lies within one of the UK's largest metropolitan areas, the metropolitan county of Greater...
on an eight building complex, the most notable building of which is the 118m CIS Tower
CIS Tower
The Co-operative Insurance Tower, or CIS Tower, is an office tower building on Miller Street in Manchester, England. It was completed in 1962 and rises to 387 feet in height. The Grade II listed building, which houses Co-operative Financial Services, a part of The Co-operative Group, is...
. The Group is due to move into the £100m The Co-operative Group Building
The Co-operative Group Building, Manchester
The Co-operative Group Building is a high rise building currently under construction in Manchester, England. Upon completion in 2012, it will become the head office of The Co-operative Group. The building is the first piece of the £800m NOMA development in the northern quarter of Manchester city...
at NOMA
NOMA, Manchester
NOMA is a large mixed-use development in Manchester which is due to open in 2012, and will be home to The Co-operative Group. It is the largest development project in the North West England ahead of developments such as MediaCityUK and Atlantic Gateway and overall is the largest development outside...
, Manchester in 2012 - in time for their 150th anniversary in 2013.
History
The Co-operative Group developed gradually over 140 years from the merger of co-operative wholesale societiesCo-operative wholesale society
A Co-operative Wholesale Society, or CWS, is a form of Co-operative Federation , in this case, the members are usually Consumers' Co-operatives...
and many independent retail societies, changing from a purely wholesale operation to a major retailer in its own right.
In 1863, the North of England Co-operative Wholesale Industrial and Provident Society Limited was launched in Manchester
Manchester
Manchester is a city and metropolitan borough in Greater Manchester, England. According to the Office for National Statistics, the 2010 mid-year population estimate for Manchester was 498,800. Manchester lies within one of the UK's largest metropolitan areas, the metropolitan county of Greater...
by 300 individual co-operatives in Yorkshire
Yorkshire
Yorkshire is a historic county of northern England and the largest in the United Kingdom. Because of its great size in comparison to other English counties, functions have been increasingly undertaken over time by its subdivisions, which have also been subject to periodic reform...
and Lancashire
Lancashire
Lancashire is a non-metropolitan county of historic origin in the North West of England. It takes its name from the city of Lancaster, and is sometimes known as the County of Lancaster. Although Lancaster is still considered to be the county town, Lancashire County Council is based in Preston...
. By 1872, it had become known as the Co-operative Wholesale Society (CWS). Throughout the 20th century, smaller societies merged with CWS, including the Scottish Co-operative Wholesale Society (SCWS) in 1973 and the London-based South Suburban Co-operative Society
South Suburban Co-operative Society
The South Suburban Co-operative Society was a cooperative retailer in south London, Surrey and Kent, England. It became part of the Co-operative Wholesale Society, now the Co-operative Group....
in 1984.
By the 1990s, CWS's share of the grocery market had declined considerably and the viability of the co-operative business model was put in doubt. It sold its factories to Andrew Regan
Andrew Regan
Andrew Regan is a British-born polar explorer and entrepreneur. He is the chief executive officer of Corvus Capital, an investment company.-Personal life:...
in 1994 and he returned in 1997 with an audacious hostile £1.2 billion bid. There were allegations of "carpet-bagging
Carpetbagger
Carpetbaggers was a pejorative term Southerners gave to Northerners who moved to the South during the Reconstruction era, between 1865 and 1877....
"—new members who joined simply to make money from the sale—and, more seriously, fraud and commercial leaks. Following the employment of a private detective and a subsequent lengthy criminal court case, Regan's bid was rejected and two senior CWS executives were dismissed and imprisoned for fraud. Regan was cleared of charges. However, the episode recharged CWS and its membership base and proved to be a catalyst for rejuvenation which is continuing today. Tony Blair
Tony Blair
Anthony Charles Lynton Blair is a former British Labour Party politician who served as the Prime Minister of the United Kingdom from 2 May 1997 to 27 June 2007. He was the Member of Parliament for Sedgefield from 1983 to 2007 and Leader of the Labour Party from 1994 to 2007...
's Co-operative Commission
Co-operative Commission
The Co-operative Commission was an independent commission set up by Tony Blair at the request of leaders of the British co-operative movement. Its aim was to review the strategy and structures of the sector, with an aim to suggesting ways to develop and modernise the movement, and its members...
, chaired by John Monks
John Monks
John Stephen Monks, Baron Monks is a member of the House of Lords and was the General Secretary of the Trades Union Congress in the UK from 1993 until 2003, when he became the General Secretary of the European Trade Union Confederation .-Early life:He attended Ducie Technical High School John...
, made major recommendations for the co-operative movement, including the organization and marketing of the retail societies.
It was in this climate, following many years of aborted discussions, that CWS merged with its struggling affiliate Co-operative Retail Services
Co-operative Retail Services
Co-operative Retail Services Limited was the second-largest consumer co-operative society in the UK. In 2000, it was dissolved by its members, merging with the larger Co-operative Wholesale Society, to form the Co-operative Group Ltd.- History :In 1933, CWS formed a retail division tasked with...
(CRS) in 2000. Its headquarters complex is situated on the north side of Manchester city centre
Manchester City Centre
Manchester city centre is the central business district of Manchester, England. It lies within the Manchester Inner Ring Road, next to the River Irwell...
adjacent to the Manchester Victoria
Manchester Victoria station
Manchester Victoria station in Manchester, England is the city's second largest mainline railway station. It is also a Metrolink station, one of eight within the City Zone...
railway station. The complex is made up of many different buildings of different periods with two notable tower blocks, New Century House and the solar panel-clad CIS Tower
CIS Tower
The Co-operative Insurance Tower, or CIS Tower, is an office tower building on Miller Street in Manchester, England. It was completed in 1962 and rises to 387 feet in height. The Grade II listed building, which houses Co-operative Financial Services, a part of The Co-operative Group, is...
. Other independent societies are part owners of the group. Representatives of the societies that part own the group are elected to the group's national board. The group manages The Co-operative brand
The Co-operative brand
The Co-operative is a common branding used by a variety of co-operatives based in the United Kingdom.Many in the UK mistakenly consider the Co-op to be a single national business, however each Co-operative is actually a franchise selling branded goods produced by the Co-operative Group The...
and the Co-operative Retail Trading Group
Co-operative Retail Trading Group
The Co-operative Retail Trading Group is the central buying group for co-operative retail societies in the United Kingdom. It was established in 1993, and says that it supplies 100% of food bought for sale by co-operatives in the UK, after being joined by the last two independent societies in 2002...
(CRTG), which sources and promotes goods for food stores. There is a similar purchasing group (CTTG) for co-operative travel agents.
At the start of 2007, the Group began discussions with United Co-operatives
United Co-operatives
United Co-operatives Limited, or simply United Co-op, was the largest 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 England...
, the UK's second-largest co-operative, on the possibility of a merger of the two societies. On 16 February 2007, the boards of both societies announced that they were to merge subject to members' approval, and on 28 July 2007 the new society came into being. At about the same time, the Group transferred the engagements of the small Scottish Nith Valley Co-operative Society which, while trading profitably, was suffering a burden with its pension fund commitments. In July 2008, the Group announced a deal to purchase the Somerfield
Somerfield
Somerfield was a chain of small to medium sized supermarkets operating in the United Kingdom. The company was taken over by the Co-operative Group on 2 March 2009 in a £1.57 billion deal, creating the UK's fifth largest food retailer. The name is currently being phased out and replaced by the...
chain of 900 supermarkets and convenience stores for a value of at least £1.5 billion. The sale completed successfully on 2 March 2009, costing £1.57bn.
Also in 2008, the Group purchased ten convenience stores as going concerns from competitor J Sainsbury
J Sainsbury
J. Sainsbury plc is the parent company of Sainsbury's Supermarkets Ltd, commonly known as Sainsbury's, the third largest chain of supermarkets in the United Kingdom with a share of the UK supermarket sector of 16.5%....
, previously trading under the Bells and Jacksons names, in the north and east of England. In Autumn 2008, Lothian, Borders & Angus Co-operative Society
Lothian, Borders & Angus Co-operative Society
Lothian, Borders & Angus Co-operative Society Limited , founded in 1839 in the Scottish Borders, was the oldest independent consumer co-operative in Scotland until it merged with The Co-operative Group in December 2008....
members voted to transfer of engagements to the Co-operative Group. The transfer of engagements came into effect on 13 December 2008. The Group announced in November 2008 that despite the economic downturn, half year profits had risen by 35.6 percent to £292.6 million for the six months to June 2008. In January 2009, Co-operative Financial Services and the Britannia Building Society
Britannia Building Society
The Britannia is a financial services institution and trading name of the Co-operative Bank Plc in the United Kingdom.Before the merger with the Co-operative, Britannia was a mutual building society, with headquarters in Leek, Staffordshire...
announced their intention to merge, subject to regulatory, and member approval. Members of the Plymouth & South West Co-operative Society joined the Co-operative Group in September 2009.
The group's reputation suffered a blow in 2007 after being fined £250,000 because 38 of its 41 stores in Sussex failed fire safety inspections. It was fined again in 2010 for £210,000 following an investigation at one of their Southampton
Southampton
Southampton is the largest city in the county of Hampshire on the south coast of England, and is situated south-west of London and north-west of Portsmouth. Southampton is a major port and the closest city to the New Forest...
stores.
In May 2010, The Co-operative Group unveiled plans to build a new head office building in Manchester. The initial phase of construction of the new building has commenced at the site on Miller Street on the north side of the city centre. The project aims to reflect ethical values of the organization in its design, construction and its relationship both with employees and surrounding communities. Occupation of the new building is scheduled for mid-2012.
Marketing and brands
Originally the Co-operative Wholesale Society Limited, the name was changed to Co-operative Group (CWS) Limited in 2001, following the transfer of engagements of Co-operative Retail Services in 2000. CWS Retail was formed in 1933 and demerged in 1957 as CRS, with the purpose of opening shops in co-operative deserts and taking over failing retail societies. The Group merged with United Co-operativesUnited Co-operatives
United Co-operatives Limited, or simply United Co-op, was the largest 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 England...
, based in Yorkshire
Yorkshire
Yorkshire is a historic county of northern England and the largest in the United Kingdom. Because of its great size in comparison to other English counties, functions have been increasingly undertaken over time by its subdivisions, which have also been subject to periodic reform...
and northwest England, on 29 July 2007, reinforcing its position as the largest consumer co-operative in the world. The current simplified legal name of Co-operative Group Limited was adopted in December 2007.
In 2007, the group began a full-scale re-brand of its estate with the aim of creating a unified identity. The well-known four-leaf clover 'Co-op' brand
The Co-operative brand
The Co-operative is a common branding used by a variety of co-operatives based in the United Kingdom.Many in the UK mistakenly consider the Co-op to be a single national business, however each Co-operative is actually a franchise selling branded goods produced by the Co-operative Group The...
, which was introduced in 1967 and adjusted in 1993, along with those of most of its other businesses including Travelcare and Funeralcare, was phased out in favour of The co-operative strapline which unifies the group around one single brand.
With more than 4,000 stores and branches to convert to the new logo the process has been cited as the "largest rebranding exercise in UK corporate history."
The Co-operative Group also launched its largest ever television advertising campaign in 2009. The unusually long two and a half minute advertisement aired for the first time during Coronation Street
Coronation Street
Coronation Street is a British soap opera set in Weatherfield, a fictional town in Greater Manchester based on Salford. Created by Tony Warren, Coronation Street was first broadcast on 9 December 1960...
's 7:40 pm ad-break on ITV
ITV
ITV is the major commercial public service TV network in the United Kingdom. Launched in 1955 under the auspices of the Independent Television Authority to provide competition to the BBC, it is also the oldest commercial network in the UK...
. The spot, created by McCann Erickson
McCann Erickson
McCann Erickson is a global advertising agency network, with offices in more than 130 countries. McCann is a subsidiary of the Interpublic Group of Companies, one of the four large holding companies in the advertising industry....
, features the Bob Dylan
Bob Dylan
Bob Dylan is an American singer-songwriter, musician, poet, film director and painter. He has been a major and profoundly influential figure in popular music and culture for five decades. Much of his most celebrated work dates from the 1960s when he was an informal chronicler and a seemingly...
track "Blowin' in the Wind", marking one of the rare occasions that the singer songwriter has allowed his music to be used for commercial purposes.
Businesses
Food
The food retail business is the largest division of the Group. It directly operates over 2,900 stores of various sizes with the biggest geographical spread of any retailer. The stores are mainly in the convenience and medium sized supermarket sector, with some larger superstores.Travel
The group operates 450 travel agencies The Co-operative Travel is made up of what was 'Travelcare' and 'Co-op Travel'. The business also has direct sales channels through telephone, home workers and, the internet. In July 2009 the business launched their own tour operation as a joint venture with Cosmos Holidays (part of the Monarch Group). It was announced on 8 October 2010 that the business of The Co-operative Travel was to be transferred, along with Thomas Cook Group's travel agencies, into a joint venture to be owned 70% by Thomas Cook Group and 30% by The Co-operative Group; this move will create the UK's largest travel network. This transfer was subsequently referred to the Office of Fair Trading as a result of monopoly concerns.Funeralcare
The Co-operative Funeralcare is the UK's largest funeral director with over 800 funeral homes, many of which retain their private names whilst others operate under the co-operative brand.Pharmacy
The Co-operative Pharmacy is now the third largest community pharmacy group in the UK with nearly 800 branches. The Co-operative Pharmacy have a nationwide presence from the north of Scotland to the south of England, with pharmacies in Wales (the biggest single pharmacy chain in Wales) and Northern Ireland too.Financial services
For many years, CWS's two financial subsidiaries were separately managed. In 2002 they were brought together under an umbrella society, Co-operative Financial ServicesCo-operative Financial Services
Co-operative Banking Group Limited, formerly Co-operative Financial Services, is a wholly owned subsidiary of Co-operative Group Ltd. in the United Kingdom...
(or CFS), which is wholly owned by the Group. CFS is made up of the Co-operative Bank
Co-operative Bank
The Co-operative Bank plc is a commercial bank in the United Kingdom and Guernsey, with its headquarters in Manchester.The bank markets itself as an ethical bank, and refuses to invest in companies involved in the arms trade, global climate change, genetic engineering, animal testing and use of...
, including the internet bank Smile
Smile (bank)
Smile, or smile.co.uk, is a British internet bank, and a trading division of The Co-operative Bank. It was established as the UK's first full internet bank in 1999. Other banks, like Egg and First-e, had opened in previous years but Smile was the first to offer full-service current accounts,...
and the former Britannia Building Society
Britannia Building Society
The Britannia is a financial services institution and trading name of the Co-operative Bank Plc in the United Kingdom.Before the merger with the Co-operative, Britannia was a mutual building society, with headquarters in Leek, Staffordshire...
and the Co-operative Insurance Society; it has over four and a half million customers.
Legal services
Co-operative Legal Services is a national legal services provider of legal experts dedicated to widening and easing public access to legal provision. Services cover the writing of Wills, probate, conveyancing, legal assistance with accidents and personal injuries and employment law. Free legal advice is provided with these services without obligation. The group announced the formation of this new division, based in BristolBristol
Bristol is a city, unitary authority area and ceremonial county in South West England, with an estimated population of 433,100 for the unitary authority in 2009, and a surrounding Larger Urban Zone with an estimated 1,070,000 residents in 2007...
, in April 2006.
Farms
The group manages over 70000 acres (283.3 km²) of land across Great Britain which is providing an ever increasing number of products, such as soft fruit, potatoes, flour and cider, to Co-operative Food stores allowing the group to further differentiate itself from competitors. The Co-operative is the largest farmer in the UK.Property
The group maintains a property business that manages an investment and trading property portfolio.Clothing
The Co-operative Clothing design, manufacture and distribute Workwear, businesswear and uniforms for catering, construction, beauty and most other industries under their own label.Motor Group
The Co-operative Motor Group is one of the North's leading motor traders and one of the top 50 motor dealers in the UK. The Motor Group represents ten major motor manufacturers; Renault, Nissan, Land Rover Mazda, Peugeot, Fiat, Suzuki, Chrysler, Dodge and Jeep.Former businesses
Engineering
Syncro was the rebranded engineering and building services business of the Co-operative Group, based in Salford. Syncro was sold in 2006.Associated Co-operative Creameries
Associated Co-operative Creameries was the Group's large milk processing and distribution division. ACC also handled logistics of the retail business but this responsibility was given to a new department, Co-operative Retail Logistics, prior to sale. The division was sold to Dairy Farmers of BritainDairy Farmers of Britain
Dairy Farmers of Britain was a UK co-operative milk processor that bought milk directly from farmers and had several factories producing milk and cheese products for sale in various regions throughout the UK...
, a farmers co-operative, on 10 August 2004.
Non-food retail
The Group decided to withdraw from the department store business following many years of increasing losses, with several of the stores being acquired by the Anglia Regional Co-operative SocietyAnglia Regional Co-operative Society
Anglia Regional Co-operative Society Limited is the fifth largest consumer co-operative in the United Kingdom. It was formed by the merger of the Greater Peterborough Regional and Anglia Co-operative Societies in 1987. The Society has a wide-ranging and extensive portfolio with over 100 stores,...
, and the remainder being closed. Many of the shops had been in poor locations and had suffered from years of under-investment. Initially, two stores were to be retained in Perth and Tunbridge Wells as a trial of a new style of department store but it was decided to close these in 2006.
However, the Group continues to operate a growing internet business retailing electrical goods and designer beds, as well as providing electrical buying, warehousing and distribution services to the wider co-operative movement, as many of the independent societies continue to operate in non-food retailing.
Footwear
Shoefayre was established in 1959, initially known as Society Shoes. For many years it was co-owned by several co-operative societies but eventually became wholly owned and managed by the Co-operative Group. In 2006, it reported operating losses of £6 million and in 2007 was sold to rival shoe retailer Shoe ZoneShoe Zone
Shoe Zone is a footwear retailer in the United Kingdom and Ireland which sells shoes at low prices. It has over 800 stores in different cities and towns throughout the UK and Ireland and around 5,750 employees. The company has an annual turnover of 239 million...
.
Dividend and membership scheme
The idea of co-operative trading revolutionized food retailing with the dividendDividend
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be distributed to...
, often known as "divi", and the "divi number" becoming an integral part of British life. The way in which co-operative retail societies are run for the benefit, and on behalf of their members is something which sets them apart from their modern-day competitors. The dividend is a financial reward to members based on each member's level of trade with the society. The distribution of profits on the basis of turnover rather than capital invested is a fundamental difference between a co-operative and most private sector enterprise.
Historically, members' sales would be recorded in ledgers in society's stores and at the end of the collection period a proportional payment would be made back to the member. As the societies grew, and the number of members increased, the method of using ledgers became cumbersome. As a solution, some societies, including Co-operative Retail Services, started to issue stamps to members for qualifying transactions. Members would collect the stamps on a savings card and, when the card was complete, would use it as payment for goods or deposit into their share account.
By the late twentieth century the Co-operative Group's precursors and then the Co-operative Group were no longer paying true dividend (it had become a drain on limited resources), although several independent societies (such as Anglia Regional) continued to do so. In the late 1990s a loyalty card scheme
Loyalty program
Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal buying behavior — behavior which is potentially beneficial to the firm....
, in the style of the Tesco Clubcard
Tesco Clubcard
Tesco Clubcard is the loyalty card of leading British supermarket chain Tesco. The Clubcard scheme operates in the UK, Ireland, Poland and several other countries, and in the UK market in particular has been highly successful, with over 15 million members as of 2010.-History:In 1993 Terry Leahy...
, was introduced which used the Dividend brand. Ironically these loyalty cards were inspired by the original co-operative dividend but were little more than marketing exercises as well as a way to gather useful customer information. Co-operative customers (not just members) could sign up and receive a swipe card to record their purchases with vouchers being sent out twice a year which could be exchanged for cash or goods.
However, in September 2006 the Co-operative Group relaunched "true" dividend whereby a proportion of the profits of the Co-operative Group are returned to members. To emphasize the change, the scheme is now called The Co-operative Membership and members earn a "share of the profits".
New members are recruited by allowing them to deduct the refundable subscription for a £1 share from their first dividend. Members can collect points to increase their share of the profits by using the services provided across the whole family of businesses.
In 2008, the dividend almost doubled to £38 million, equivalent to 2.63p per point (one point being earned for each £1 food purchase), reflecting an 8% increase in underlying profit.
Group membership increased sharply in the first year after the relaunch, to 2.5 million with many more young people being attracted to join who have an affinity with the co-operative values and principles.
In 2007, the Oxford-based Midcounties Co-operative joined the Group's membership scheme allowing its members to earn dividend at Co-operative Group stores and vice versa. It was also the first independent co-operative to adopt the new Co-operative branding
The Co-operative brand
The Co-operative is a common branding used by a variety of co-operatives based in the United Kingdom.Many in the UK mistakenly consider the Co-op to be a single national business, however each Co-operative is actually a franchise selling branded goods produced by the Co-operative Group The...
. Since then, other independent co-operatives joined the reciprocal membership dividend scheme, including Anglia Regional Co-operative Society
Anglia Regional Co-operative Society
Anglia Regional Co-operative Society Limited is the fifth largest consumer co-operative in the United Kingdom. It was formed by the merger of the Greater Peterborough Regional and Anglia Co-operative Societies in 1987. The Society has a wide-ranging and extensive portfolio with over 100 stores,...
(2008), Southern Co-operatives
Southern Co-operatives
Southern Co-operatives Limited is a regional consumer co-operative in the United Kingdom. It is a registered Industrial and Provident Society, a member of the Co-operative Union Ltd., the Co-operative Retail Trading Group and a corporate member of Co-operative Group Ltd. , the largest consumer...
(2009), Chelmsford Star Co-operative Society
Chelmsford Star Co-operative Society
Chelmsford Star Co-operative Society Limited is a consumer co-operative in the United Kingdom. It is a registered Industrial and Provident Society, a member of the Co-operative Union Ltd., the Co-operative Retail Trading Group, the Co-operative Travel Trading Group and a corporate member of...
(2009) and Midlands Co-operative (2010).
Executive Remuneration
The Annual Report cites a number of factors in determining executive pay, including "attracting, retaining and motivating senior Executives of the appropriate calibre to further the success of the Group" and "ensuring that the interests of Executives are aligned with those of the Group and its members".CEO Peter Marks was paid a basic salary of £900,000 in 2010, with a performance-related bonus of £449,000. The basic salaries of the thirteen executives adds up to £4,071,000, with their bonuses adding up to £2,121,000.
Co-operative practices
As a co-operative, the Group places importance on ethical and transparent trading and reporting, and democratic accountability and participation. Retail trading areas are overseen by Area Committees of about ten to twelve members, which have annual elections and meetings for all members. These elect members onto regional boards, which also meet annually to report to all members in the region. A national board includes directors elected from regional boards, plus representatives of other societies, the corporate members. Individual stores may have member forums also. Unlike a pure consumer co-operative, voting rights are shared between the corporate members and the individual consumer members, as described in an annual report:- Voting for corporate members is in proportion to trade with the Society. Each individual member has one vote in the appropriate region of the Society and each region has voting rights calculated on the same basis as a corporate member.
As the UK's largest co-operative, the Group plays a key part in the co-operative movement. It is also a major sponsor of new co-operative ventures, local initiatives through Co-operative Action and Fairtrade promotion.
Political ties with the Wider Cooperative and Labour movements
The Co-operative Group, as the largest retail business in the UK Cooperative movement, is also the biggest affiliate supporter of the Co-operative PartyCo-operative Party
The Co-operative Party is a centre-left political party in the United Kingdom committed to supporting and representing co-operative principles. The party does not put up separate candidates for any UK election itself. Instead, Co-operative candidates stand jointly with the Labour Party as "Labour...
, which fields Coop candidates in UK national, regional and local elections on joint tickets with the Labour Party
Labour Party (UK)
The Labour Party is a centre-left democratic socialist party in the United Kingdom. It surpassed the Liberal Party in general elections during the early 1920s, forming minority governments under Ramsay MacDonald in 1924 and 1929-1931. The party was in a wartime coalition from 1940 to 1945, after...
, its sister party. In addition to core aims of furthering Cooperative values and Mutualism in Parliament and on the national stage cooperative party members, activists and representatives (MPs,MSPs,AMs and Councillors) also campaign on wider social issues, including the most recent "The Feelings Mutual" campaign. In addition The Co-operative Group facilitates, takes part in or owns services provided for other UK Consumer Cooperative Societies, supports community concerns and project and runs ethical and social campaigns/advertising and events which correspond to the interests and values of the democratic Society and the wider community.
List of corporate members
As of 2011, twenty-two independent consumer co-operatives are corporate members, in other words customer owners, of the Group.They invested share capital to found or join the Group's wholesaler predecessors, such as the North of England Co-operative Wholesale Industrial and Provident Society and the Scottish Co-operative Wholesale Society.
As noted above, these co-operatives are represented alongside the regional boards at annual meetings and in the board of directors, and are entitled to dividends based on the amount of their purchases from the Group.
| Society | Website | Founded | Members | Activities (number of outlets) |
|---|---|---|---|---|
| Allendale | Food retail (1) | |||
| Anglia Regional Anglia Regional Co-operative Society Anglia Regional Co-operative Society Limited is the fifth largest consumer co-operative in the United Kingdom. It was formed by the merger of the Greater Peterborough Regional and Anglia Co-operative Societies in 1987. The Society has a wide-ranging and extensive portfolio with over 100 stores,... |
arcs.co.uk | 1876 | 216,102 | Food retail (29), Funerals (22), Travel (11), Non-food retailing (35), Petol retailing (11), Opticians (3) |
| Chelmsford Star Chelmsford Star Co-operative Society Chelmsford Star Co-operative Society Limited is a consumer co-operative in the United Kingdom. It is a registered Industrial and Provident Society, a member of the Co-operative Union Ltd., the Co-operative Retail Trading Group, the Co-operative Travel Trading Group and a corporate member of... |
chelmsfordstar.coop | 1867 | 52,937 | Food (36), Non-food (2), Travel (2), Funerals (6) |
| Channel Islands Channel Islands Co-operative Society The Channel Islands' Co-operative Society Limited is a consumer co-operative. It is a registered Industrial and Provident Society, a member of the Co-operative Union Ltd. in the United Kingdom, the Co-operative Retail Trading Group, the Co-operative Travel Trading Group and a corporate member of... |
ci-cooperative.com | 1919 | Food (16), Non food (3: two 'Homemaker' stores and one 'Totalsport' store), Travel (2) | |
| Clydebank Clydebank Co-operative Society The Clydebank Co-operative Society Limited is the smallest consumers' co-operative in Scotland, based in the town of Clydebank near Glasgow. Along with Scotmid and The Co-operative Group, it is one of three co-operative retailers in Scotland, and the only one not merged into a regional or national... |
1881 | Food (6), Non-food, Funerals, Post Offices | ||
| Coniston | conistonco-op.co.uk | 1896 | Food (1) | |
| East of England East of England Co-operative Society The East of England Co-operative Society Limited is the third largest consumer co-operative in the United Kingdom. It is a registered Industrial and Provident Society, a member of the Co-operative Union Ltd., the Co-operative Retail Trading Group, the Co-operative Travel Trading Group and a... |
eastofengland.coop | 1858 | ≈350,000 | Food (133), Non-food (14), Travel (12), Funeral (30), Pharmacy (8), Optician (3), Motors (3), Jewellery (2), Education Centre (1) |
| Grosmont (North Yorkshire) | 1867 | Food (1) | ||
| Heart of England Heart of England Co-operative Society The Heart of England Co-operative Society Limited is a regional consumer co-operative in the United Kingdom. It is a registered Industrial and Provident Society, a member of the Co-operative Union Ltd., the Co-operative Retail Trading Group and a corporate member of Co-operative Group Ltd. , the... |
heartofengland.coop | 1832 | 179,657 | Food (33), Non-food (21), Funeral (9), Travel (3), Post Offices (4) |
| Hawkshead | 1881 | Food (1) | ||
| Langdale | http://web.archive.org/web// http://www.langdaleco-op.co.uk/ |
Food (1) | ||
| Lincolnshire Lincolnshire Co-operative Society Lincolnshire Co-operative is a consumer co-operative in the United Kingdom. It is a registered Industrial and Provident Society, a member of the Co-operative Union Ltd., the Co-operative Retail Trading Group and a corporate member of Co-operative Group Ltd... |
lincolnshire.coop | 1861 | 149,247 (2007) | Food (71), Bakery (majority-owned), Pharmacies (29), Coffee shops (6), Non-food (4), Post offices (41), Travel (9), Funeral (9), Motors (2), Filling stations (11), Cash registers |
| Midcounties Midcounties Co-operative Society The Midcounties Co-operative Limited is the fourth-largest consumer co-operative in the United Kingdom. It is a registered Industrial and Provident Society, a member of Co-operatives UK, the Co-operative Retail Trading Group and a corporate member of Co-operative Group Ltd. , the largest consumer... |
midcounties.coop | Food (147) Funerals (69) Travel (41) Pharmacies (44) Motors (12) Nurseries (6) | ||
| Midlands | midlandsco-op.com | Food (160) | ||
| Penrith Penrith Co-operative Society The Penrith Co-operative Society Limited, known locally as Penrith Co-op, is a small regional consumer co-operative in the United Kingdom. The society was formed in 1890 and today operates one department store with supermarket attached and eight small supermarkets or convenience stores in Cumbria... |
penrithco-op.co.uk | Food (10), Non-Food (1) | ||
| Radstock Radstock Co-operative Society Radstock Co-operative Society Ltd is a small consumer co-operative, which was established in Radstock, Somerset in 1868.The society operates a large supermarket in Westfield, near Radstock, and ten convenience shops in towns and villages in the area... |
1867 | Food (11) Non Food (1) | ||
| Scotmid | scotmid.coop | Food (129) | ||
| Seaton Valley | Food (1) | |||
| Shepley Shepley Co-operative Society Shepley Co-operative Society Limited is a small consumer co-operative based in the West Yorkshire village of Shepley in the United Kingdom. The Society operates a single store on Station Road.... |
Food (1) | |||
| Southern Southern Co-operatives Southern Co-operatives Limited is a regional consumer co-operative in the United Kingdom. It is a registered Industrial and Provident Society, a member of the Co-operative Union Ltd., the Co-operative Retail Trading Group and a corporate member of Co-operative Group Ltd. , the largest consumer... |
southern.coop | Food (108) Funerals (16) | ||
| Tamworth | tamworth.coop | Food (14) | ||
| Wooldale Wooldale Co-operative Society Wooldale Co-operative Society Limited is a small consumer co-operative based in the West Yorkshire village of Wooldale. The society operates three convenience stores in the Holme Valley villages of New Mill, Thongsbridge and Wooldale... |
wooldale.coop | Food (3) |
Achievements and criticisms
- In 2002 the society gained Worldaware's 2002 Shell Award for Sustainable DevelopmentSustainable developmentSustainable development is a pattern of resource use, that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for generations to come...
for its use of Fairtrade goods. - In 2007, the society won a Queen's Award for Enterprise in the Sustainable Development category, in recognition of its business practices, including its pioneering stance on Fairtrade and the environment.
- In January 2010, the society appeared on the shortlist for the Transform Awards for rebranding and brand transformation in a number of categories
- A recent WhichWhichWhich is an English relative pronoun and interrogative pronoun.Which may also refer to:*Which?, a UK charity and its magazine*which , a Unix command*Template:Which, a Wikipedia inline tag- See also :...
survey claimed that the Co-operative was the least favourite grocer with only 46% satisfaction among customers. This is compared to WaitroseWaitroseWaitrose Limited is an upmarket chain of supermarkets in the United Kingdom and is the food division of the British retailer and worker co-operative the John Lewis Partnership. Its head office is in Bracknell, Berkshire, England...
which achieved 85%.
See also
- British co-operative movement
- Mondragón Cooperative CorporationMondragón Cooperative CorporationThe MONDRAGON Corporation is a corporation and federation of worker cooperatives based in the Basque region of Spain. Founded in the town of Mondragón in 1956, its origin is linked to the activity of a modest technical college and a small workshop producing paraffin heaters...
, a Basque co-operative group
External links
- Official website
- The Co-operative Food
- Co-operative Travel – One of the Co-operative Group Holidays & Travel Websites
- Coop Cruise Shop – One of the Co-operative Group Cruise Specialists
- Co-operative Membership website
- Co-operative Motor Group website
- THE ORIGIN OF THE "WHOLESALE George Jacob Holyoake: 'The Rochdale Pioneers'