Retailers' cooperative
A retailers' cooperative is a type of
A
Governance and operation
Retailers' cooperatives are governed by democratic member control, which generally means one vote per member. Some firms, such as
Financing and economic goals
In order to lower costs, retailers' cooperatives establish central buying locations, providing them with the opportunity to purchase in bulk. Retailers' cooperatives also engage in group advertising and promotion, uniform stock merchandising, and private branding.[2] 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 the cooperative is largely due to the profits that members gain. Generally, any surpluses are shared by the members in accordance with their original input.[1]
Examples
Examples of retailer's cooperatives include the following:
- Australia and New Zealand
- Canada
- United States
- Carpet One
- Ace Hardware
- Chez Hotels
- Do It Best
- Frontier Co-Op
- True Value (until 2018, now privately owned)
- Best Western (until 1985, now a franchisor)
- ShopRite
- National Automotive Parts Association(NAPA)
- France
- Germany
- Italy
- United Kingdom