Consumers' co-operative - Wikipedia https://en.wikipedia.

org/wiki/Consumers'_co-operative

Consumers' co-operative
A consumers' co-operative is an enterprise owned by
consumers and managed democratically which aims at fulfilling
the needs and aspirations of their members.[1] They operate
within the market system, independently of the state, as a form of
mutual aid, oriented toward service rather than pecuniary
profit.[2] Consumers' cooperatives often take the form of retail
outlets owned and operated by their consumers, such as food co-
ops.[3] However, there are many types of consumers'
cooperatives, operating in areas such as health care, insurance,
housing, utilities and personal finance (including credit unions). Raunds Co-operative Society
Limited was a consumer co-
In some countries, consumers' cooperatives are known as operative society based in Raunds,
cooperative retail societies or retail co-ops, though they Northamptonshire, founded in 1891
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 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.[4]

Consumer cooperation has been a focus of study in the field of cooperative economics.

Contents
History
Modern movement
Governance and operation
Finance and approach to capital accumulation
Problems
Pursuit of social goals
Examples
Europe
Australia
Japan
North America
Caribbean
See also
Notes
Further reading

1 of 9 3/20/21, 4:47 PM
Consumers' co-operative - Wikipedia https://en.wikipedia.org/wiki/Consumers'_co-operative

External links

History
Consumer cooperatives rose to prominence during the industrial
revolution as part of the labour movement. As employment
moved to industrial areas and job sectors declined, workers began
organizing and controlling businesses for themselves. Workers
cooperative were originally sparked by "critical reaction to
industrial capitalism and the excesses of the industrial
revolution." The formation of some workers cooperatives were
designed to "cope with the evils of unbridled capitalism and the Model of Robert Owen's visionary
insecurities of wage labor".[5] project for a cooperative settlement.
Owenites fired bricks to build it, but
The first documented consumer cooperative was founded in construction never took place.
1769,[6] 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.[7]

The philosophy that underpinned the cooperative movement stemmed from the socialist writings of
thinkers including 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. It was here that the
first co-operative store was opened. Spurred on by the success of this, he 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 in Scotland and in New Harmony, Indiana in the United States of America,
but both communities failed.

Similar early experiments were made in the early 19th century and by 1830 there were several
hundred co-operatives.[8] Dr 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,[9] the first edition of which appeared on 1 May 1828. This gave a mixture of co-operative
philosophy and practical advice about running a shop using cooperative principles.

Modern movement

The first successful organization was the Rochdale Society of Equitable Pioneers, established in
England in 1844. The Rochdale Pioneers established the ‘Rochdale Principles’ on which they ran their
cooperative. This became the basis for the development and growth of the modern cooperative
movement.[10] As the mechanization of the Industrial Revolution was forcing more and more skilled
workers into poverty, these tradesmen decided to band together to open their own store selling food

2 of 9 3/20/21, 4:47 PM
Consumers' co-operative - Wikipedia https://en.wikipedia.org/wiki/Consumers'_co-operative

items they could not otherwise afford.

With lessons from prior failed attempts at co-operation in mind,

they designed 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, The Rochdale Society of Equitable
and they were soon known for providing high quality, Pioneers was established in 1844
and defined the modern cooperative
unadulterated goods.
movement.
The Co-operative Group formed gradually over 140 years from
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 the Scottish
Co-operative Wholesale Society (1973) and the South Suburban Co-operative Society (1984).

Governance and operation

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 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 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.

Finance and approach to capital accumulation

The customers or consumers of the goods and/or services the cooperative provides are often also the
individuals who have provided 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 a for-profit enterprise will treat the difference between cost (including labor etc.) and selling

3 of 9 3/20/21, 4:47 PM
Consumers' co-operative - Wikipedia https://en.wikipedia.org/wiki/Consumers'_co-operative

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 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,[11] others argue that consumer cooperatives do not
return a profit by traditional definition, and similar tax standards do not apply.[12]

Problems
Since consumer cooperatives are run democratically, they are subject to 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.[13] 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 the cooperative as
would appear in any other company. This is one critique of consumer cooperatives in favor of worker
cooperatives.

Pursuit of social goals

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.

Thus, the founding document of the Rochdale Pioneers, who

established one of the earliest consumer cooperatives in England in
1844, expressed 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."[10]
January 1947 Co-op
Cooperative Federalists, a term coined in the writings of Beatrice Magazine back cover
Webb, were advocates for the formation of federations of consumer designed as a promotional
cooperatives as means of achieving social reform. They anticipated poster
such a development as bringing a broad set of benefits including
economic democracy and justice, transparency, greater product purity,
and financial benefits for consumers.[14]

Examples

Europe

4 of 9 3/20/21, 4:47 PM
Consumers' co-operative - Wikipedia https://en.wikipedia.org/wiki/Consumers'_co-operative

One of the world's largest consumer co-operative federations operates in the UK as The Co-op, which
together operates over 5500 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 is by far the largest of these businesses, itself having over 4500
outlets and operating the collective buying group.[15]

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 cooperations of Norway, Sweden and Denmark joined as Coop Norden in
January 2002, but separated again in 2008.

In Italy, 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%.[16]

In France, Coop Atlantique owns 7 hypermarkets, 39 supermarkets and about 200 convenience
stores.

In Germany, The ReWe Group is a diversified holding company of consumer cooperatives that include
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.[17]

In Spain, Eroski is a supermarket chain within Mondragón Corporación Cooperativa. As a worker-

consumer hybrid, part of the personnel are hired workers and part are owner-workers. The owners
include workers and mere consumers, but buying 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 has sold several of its supermarkets and hypermarkets.

Australia

The Co-op Bookshop sold textbooks both online and on university campuses. It also owned Australian
Geographic. In 2020 its retail stores were closed and its online store was sold to Booktopia.[18]

The Wine Society (Australian Wine Consumers’ Co-operative Society Limited), established in 1946,
now has over 58,000 members. It also 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, changing its name to
Bank Australia in 2015. The bank is wholly owned by its customers, reported at 125,000 in 2012.

Japan

5 of 9 3/20/21, 4:47 PM
Consumers' co-operative - Wikipedia https://en.wikipedia.org/wiki/Consumers'_co-operative

Japan has a very large and well-developed consumer cooperative movement with over 14 million
members; retail co-ops alone had a combined turnover of 2.5 trillion Yen (21 billion U.S. Dollars) in
April, 2003.[19] Co-op Kobe (コープこうべ) in the Hyōgo Prefecture is the largest retail cooperative in
Japan and, with over 1.2 million members, 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 1 in 5 of all Japanese households belongs to a local retail co-op and 90% of all co-op
members are women. (Takamura, 1995). Nearly 6 million households belong to one of the 1,788,000
Han groups (Japanese Consumers' Co-operative Union., 2003). 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 particular strength of Japanese consumer co-ops in recent years has been the
growth of community supported agriculture where 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 the "Network Movement" ("Tokyo
Seikatsusha (it means "Living Persons") Network",[20] "Kanagawa Network Movement",[21] 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.

North America

In the United States, the PCC (Puget Consumers Cooperative) Natural Markets in Seattle is the largest
consumer-owned food cooperative.[22] The National Cooperative Grocers Association maintains a
food cooperative directory.

Seattle-based R.E.I., which specializes in outdoor sporting equipment, is the largest [23] consumer
cooperative in the United States.

Similarly, outdoor retailer Mountain Equipment Co-op (MEC) in Canada, was one of the country's
major consumer cooperatives. In the Canadian Prairie provinces as well as British Columbia,[24] gas
stations, lumberyards, and grocery stores can be found under the Co-Op brand.

All credit unions in the United States and Canada are financial cooperatives.[25]

Caribbean

In Puerto Rico, several Supermercados Fam Coop operate.

See also
Food cooperative, a supermarket owned and operated by its consumers.
Copyleft
GNU General Public License
Health food store
Healthcare Co-operatives movement in India
National Cooperative Business Association

6 of 9 3/20/21, 4:47 PM
Consumers' co-operative - Wikipedia https://en.wikipedia.org/wiki/Consumers'_co-operative

Open source
Open-source hardware
US Federation of Worker Cooperatives

Notes
1. Euro Coop. "Consumer Co-operatives: Democracy - Development - Employment" (https://web.arc
hive.org/web/20120325010525/http://www.eurocoop.org/dmdocuments/publication_report/Consu
merCooperatives08.pdf) (PDF). p. 4. Archived from the original (http://www.eurocoop.org/dmdocu
ments/publication_report/ConsumerCooperatives08.pdf) (PDF) on 2012-03-25. Retrieved
2011-06-07.
2. Warbasse, James Peter (1950). Cooperative Peace (http://abob.libs.uga.edu/bobk/coopp.html).
Archived (https://web.archive.org/web/20141020063906/http://abob.libs.uga.edu/bobk/coopp.html)
from the original on 2014-10-20.
3. O'Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics: Principles in Action. Upper Saddle
River, New Jersey 07458: Pearson Prentice Hall. p. 203. ISBN 0-13-063085-3.
4. Gide, Charles (1922). Consumers' Co-operative Societies (http://fax.libs.uga.edu/HD3271xG453).
Translated by Co-operative Reference Library, Dublin. p. 122. ISBN 1-116-75261-1. Archived (http
s://web.archive.org/web/20080520122644/http://fax.libs.uga.edu/HD3271xG453) from the original
on 2008-05-20.
5. Adams, Frank and Gary Hansen (1993) Putting Democracy To Work: A Practical Guide for
Starting and Managing Worker-Owned Businesses, Berrett-Koehler Publishers, Inc, San
Francisco
6. Fairbairn, Brett. "The Meaning of Rochdale" (https://web.archive.org/web/20120111091547/http://
www.usaskstudies.coop/pdf-files/Rochdale.pdf) (PDF). Archived from the original (http://www.usas
kstudies.coop/pdf-files/Rochdale.pdf) (PDF) on 2012-01-11.
7. Lennoxtown (Local History) (http://www.eastdunbarton.gov.uk/Web+Site/Live/EDWebLive.nsf/LU-
AllContent/PBAD-5UDKEV?OpenDocument) Archived (https://web.archive.org/web/20070319133
616/http://www.eastdunbarton.gov.uk/Web%20Site/Live/EDWebLive.nsf/LU-AllContent/PBAD-5U
DKEV?OpenDocument) 2007-03-19 at the Wayback Machine
8. Doug Peacock. "Social strife: The birth of the co-op" (https://web.archive.org/web/2008072506541
8/http://www.cottontimes.co.uk/co-op02.html). Cotton Times, understanding the industrial
revolution. p. 2. Archived from the original (http://www.cottontimes.co.uk/co-op02.html) on
2008-07-25. Retrieved 2008-06-26.
9. The Co-operator URL: https://books.google.com/books?id=4mATAAAAQAAJ
10. Thompson, David (July–August 1994). "Co-op Principles: Then and Now" (http://www.cooperative
grocer.coop/articles/2004-01-09/co-op-principles-then-and-now-part-2). Cooperative Grocer.
Archived (https://web.archive.org/web/20110718162409/http://www.cooperativegrocer.coop/article
s/2004-01-09/co-op-principles-then-and-now-part-2) from the original on 2011-07-18.
11. "The Farmer Takes a Town" (http://www.time.com/time/magazine/article/0,9171,791772-2,00.html)
. Time. December 25, 1944. Archived (https://web.archive.org/web/20070930070045/http://www.ti
me.com/time/magazine/article/0,9171,791772-2,00.html) from the original on September 30,
2007.
12. "Attacks Splutter" (http://fax.libs.uga.edu/hd2951xc776/co46/index.djvu?djvuopts&page=co46009.
djvu) (DjVu). CO-OP Magazine. January 1946: 17. Archived (https://web.archive.org/web/2011071
8170635/http://fax.libs.uga.edu/hd2951xc776/co46/index.djvu?djvuopts&page=co46009.djvu)
from the original on 2011-07-18.

7 of 9 3/20/21, 4:47 PM
Consumers' co-operative - Wikipedia https://en.wikipedia.org/wiki/Consumers'_co-operative

13. Warbasse, James Peter (1942). "Problems of Cooperation" (https://web.archive.org/web/2008052

0113118/http://fax.libs.uga.edu/HD2965xW37). Archived from the original (http://fax.libs.uga.edu/H
D2965xW37/) on 2008-05-20.
14. "What Consumers' Cooperation does" (https://web.archive.org/web/20080520110413/http://fax.lib
s.uga.edu/HD2951xC776). Cooperation. May 1934. Archived from the original (http://fax.libs.uga.
edu/HD2951xC776/) on 2008-05-20.
15. "Archived copy" (http://www.thenews.coop/49090/news/general/view-top-300-co-operatives-aroun
d-world/). Archived (https://web.archive.org/web/20150517005458/http://www.thenews.coop/4909
0/news/general/view-top-300-co-operatives-around-world/) from the original on 2015-05-17.
Retrieved 2015-06-03.
16. Retailing in Finland (http://www.euromonitor.com/Retailing_in_Finland). London, UK: Euromonitor
International. October 2006. Archived (https://web.archive.org/web/20070814121414/http://www.e
uromonitor.com/Retailing_in_Finland) from the original on 2007-08-14. Retrieved 2007-06-28.
17. "The world's biggest 300 co-operatives" (https://www.theguardian.com/social-enterprise-network/2
012/jan/04/social-enterprise-blog-co-operatives-and-mutuals).
18. Bonyhady, Nick (2020-01-30). "Co-op bookshop to disappear from university campuses" (https://w
ww.smh.com.au/national/co-op-bookshop-to-disappear-from-university-shelves-20200130-p53w6
8.html). The Sydney Morning Herald. Retrieved 2020-08-30.
19. Japanese Consumers' Co-operative Union., 2003
20. Tokyo Seikatusha Network Official Site (http://www.seikatsusha.me/) Archived (https://web.archiv
e.org/web/20140604041718/http://www.seikatsusha.me/) 2014-06-04 at the Wayback Machine (in
Japanese)
21. Kanagawa Network Movement Official Site (http://kanagawanet.org/) Archived (https://web.archiv
e.org/web/20140517162621/http://kanagawanet.org/) 2014-05-17 at the Wayback Machine (in
Japanese)
22. "Food Co-ops and Associates - Co-op Grocer Network" (http://cooperativegrocer.coop/coops/).
cooperativegrocer.coop. Archived (https://web.archive.org/web/20170615031941/http://www.coop
erativegrocer.coop/coops/) from the original on 15 June 2017. Retrieved 4 May 2018.
23. "Archived copy" (http://www.rei.com/about-rei/financial-information.html). Archived (https://web.arc
hive.org/web/20140926023633/http://www.rei.com/about-rei/financial-information.html) from the
original on 2014-09-26. Retrieved 2014-09-02.; see: 2012 Audited Financial Statements, pg 13,
sec 14
24. "Consumer Co-op Archives - BC Coop Association" (http://bcca.coop/membership/member-categ
ory/consumer-co-op/). BC Coop Association. Archived (https://web.archive.org/web/20180126012
541/http://bcca.coop/membership/member-category/consumer-co-op/) from the original on 26
January 2018. Retrieved 4 May 2018.
25. "The Credit Union Movement: Origins and Development 1850 to 1980" by J. Carroll Moody and
Gilbert Fite

Further reading
Co-operation 1921-1947 (https://web.archive.org/web/20080520110413/http://fax.libs.uga.edu/HD
2951xC776), published monthly by The Co-operative League of America. fully searchable original
link (http://fax.libs.uga.edu/HD2951xC776)
The History of Co-operation (https://web.archive.org/web/20080520113444/http://fax.libs.uga.edu/
HD3486xH7), by George Jacob Holyoake, 1908. fully searchable original link (http://fax.libs.uga.e
du/HD3486xH7)
Why Co-ops? What Are They? How Do They Work? (http://www.historians.org/projects/GIRoundt

8 of 9 3/20/21, 4:47 PM
Consumers' co-operative - Wikipedia https://en.wikipedia.org/wiki/Consumers'_co-operative

able/Coops/Coops_TOC.htm) A pamphlet from the G.I. Roundtable series by Joseph G. Knapp,

1944
Law of Cooperatives (https://web.archive.org/web/20090320165830/http://www.stoel.com/webfiles
/lawofcooperatives.pdf), by Legal Firm Stoel Rives, Seattle

External links
Cooperatives Europe (http://www.coopseurope.coop/) – The common platform of ICA Europe and
the Coordinating Committee of European Cooperative Associations (CCACE)
International Co-operative Alliance (http://www.ica.coop/)
Consumer Cooperatives Worldwide (https://web.archive.org/web/20110518180050/http://www.ica.
coop/ccw/index.html) (sector of ICA)
Co-operatives UK, the central organisation for all UK co-operative enterprises (https://web.archiv
e.org/web/20101215014808/http://www.cooperatives-uk.coop/)
The online database of UK Co-operatives (http://www.uk.coop)
ICOS, the Irish Co-operative Organisation Society (http://www.icos.ie/)
The ICA Group, technical advice for cooperative start-ups in the USA. (http://www.ica-group.org/)
English website from the Japanese Consumer Co-operative Union. (http://jccu.coop/eng/)
A new approach to cooperative understanding (http://www.coopgalor.com)
University of Wisconsin Center for Cooperatives (http://www.uwcc.wisc.edu/)
Coopnet Update paper and event database (http://www.coopnetupdate.org/)
Dissecting Healthcare Co-op (http://www.cnn.com/2009/HEALTH/08/19/health.care.coop/index.ht
ml)
Background Paper on Co-operatives (https://www.un.org/esa/socdev/social/cooperatives/docume
nts/survey/background.pdf)
Brazda&Schediwy (ed.) Comparative International Study, 1989 (http://genos.univie.ac.at/fileadmin
/user_upload/genossenschaftswesen/Genos/consum.pdf)

Retrieved from "https://en.wikipedia.org/w/index.php?title=Consumers%27_co-operative&oldid=1010455557"

This page was last edited on 5 March 2021, at 15:27 (UTC).

Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. By using this
site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia
Foundation, Inc., a non-profit organization.

9 of 9 3/20/21, 4:47 PM