The Co-operative Group
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the Co-operative Group, the trading name of Co-operative Group (CWS) Ltd, is a United Kingdom consumers' co-operative, one of the largest consumer-owned businesses in the world. Co-operative Group (CWS) Limited was formerly called the Co-operative Wholesale Society Limited but the name was changed in 2001 on the transfer of engagements of Co-operative Retail Services to the Co-operative Wholesale Society.
History
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). The "Co-op" revolutionised food retailing, with the "divi" and the "divi number" being an integral part of British life.
By the 1990s, CWS's share of the market had declined considerably and many came to doubt the viability of co-operative model. CWS sold its factories to Andrew Regan in 1994. Regan returned in 1997 with a £1.2 billion bid for CWS. There were allegations of "carpet-bagging" - new members who joined simply to make money from the sale - and more seriously fraud and commercial leaks. After a lengthy battle, Regan's bid was seen off and two senior CWS executives were dismissed and imprisoned for fraud. Regan was cleared of charges. The episode recharged CWS and its membership base. Tony Blair's Co-operative Commission, chaired by John Monks, made major recommendations for the co-operative movement, including the organisation and marketing of the retail societies. It was in this climate that, in 2000, CWS merged with the UK's second largest society, Co-operative Retail Services.
Its headquarter 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 with two notable tower blocks of New Century House and the solar panel-clad CIS tower.
Other independent societies, such as United Co-op, have close relationships with the Group. Senior staff from the smaller societies make up a large element of the national board. The Group manages the Co-operative Retail Trading Group (CRTG), which produces and sources goods for the supermarkets of most of the societies under a common brand. There is a similar purchasing group (CTTG) for co-operative travel agents.
Businesses
The Group has 25% of the co-operative retail business in the UK and substantial shares in certain wider markets, including funerals and pharmacies. In food retail, it has 5% of the UK market, in approximately sixth place, down from 30% in the 1950s, with much of the rest of the market taken by individual independent shops.Food Retail
Finance
The financial subsidiary, Co-operative Financial Services (or CFS), is made up of the Co-operative Bank with the smile internet bank and the Co-operative Insurance Society (or CIS).Travel
The Society operates the UK's largest independent travel agency, Travelcare, with 380 branches as well as direct-sales through telephone and the internet.Funerals
Co-operative Funeralcare is the UK's largest funeral director with over 500 branches.Pharmacies
One of the largest operators in Europe with over 300 branches in the UK.Footwear
Shoefayre, formerly a separate shoe retailing company co-owned by several societies, is now wholly owned and managed by the Group, with 283 high street footwear stores.Non-food retail
The Society is in the process of selling or closing its department stores. See article on [BBC News]. It has retained two new-format Home Stores in Perth, Scotland and Tunbridge Wells, Kent. It has a growing internet business retailing electrical goods and designer beds.Farming
The Society manages over 85,000 acres of land across the UK.Property
The Society maintains a successful property business that manages investment and trading properties.Legal
The Society announced the formation of a new division, Co-operative Legal Services, in April 2006, to be based in Bristol [link].Former businesses
Cars and property
The Society sold Priory Motor Group, a car dealership business, in 2005. Reg Vardy bought the majority of the dealerships.Engineering
Syncro was the rebranded engineering and building services business of the Co-operative Group, based in Salford. Syncro was sold in 2006.ACC
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, Retail Logistics, prior to sale. The division was sold to Dairy Farmers of Britain on 10 August 2004.Co-operative practices
As a co-operative, the Group places importance on ethical and transparent trading and reporting, and democratic accountability and participation. Trading areas are overseen by 15-member Area Committees 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. Individual stores may have member forums also. In 2004, the traditional "divi" - a dividend for members in the supermarkets - returned to distribute profits from all parts of the business to members.
As the UK's largest co-operative, the Group plays a key part in the co-operative movement. It is the biggest subscriber to Co-operatives UK and the Co-operative Party, with members electing representatives on to local Party units. It is also a major sponsor of new co-operative ventures, local initiatives through Co-operative Action and Fairtrade promotion.
Co-operative principles
1. Voluntary and open membership
2. Democratic member control
3. Member economic participation
4. Autonomy and independence
5. Education, training and information
6. Co-operation among co-operatives
7. Concern for community
Mergers and acquisitions
The Society has produced [an on-line database of all past merges and acquisitions of all co-operative societies in the UK]. Members with a share account of a former society can find out to which Society it now belongs.Business Award
The Co-op was awarded the [2004 Shell Worldaware Business Award] for sustainable development.See also
External links
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