Retail Co-Ops

Cooperative enterprise has revolutionized how companies do business in their communities. Retailer cooperatives focus on the needs of their members — either independent business owners (retailer-owned) or the store’s customers (consumer-owned).

Customers or individual business owners come together in a retail co-op to meet common goals. They focus on how their business can benefit the most people, not turn the most profit. As a result, they serve the needs of their local, regional and even national communities through quality products and customer service.

Key Facts About Retailer Cooperatives

Retail co-ops put the interests of their members and communities first. Below are a few facts about retailer cooperatives:

• In 1844, the first retailer co-op was founded in England as a new approach to supplying food.
• About 50,000 independent business owners are members of retail co-ops.
• With 25 million lifelong members, REI is the largest customer-owned retail co-op in the United States (U.S.).
• Examples of retail co-ops are REI, Ace Hardware, Carpet One and NAPA Auto Parts.

A Brief History of Retail Cooperatives

Modern retailer co-ops trace their histories back to the original English shop established in 1844 during the European Industrial Revolution. The decade was challenging for many due to famine and economic hardship. Wealthier shop owners took advantage of the circumstances to sell lower-quality or diluted goods to the poor.

A group of working-class artisans and weavers known as the Rochdale Pioneers established a small shop to take back control over food purity, supply and prices. This organization operated with democracy and transparency, creating the cooperative principles that organized groups follow today.

Word of the Pioneers’ success and their operating values soon spread throughout Europe and North America. These organizations became vital components of President Roosevelt’s New Deal, which promoted co-ops for thriftiness. As a result, cooperative business models originated in numerous economic sectors and led to contemporary global co-ops.

Types of Retail Cooperatives

There are two main types of retail cooperatives operating in the U.S.:

Consumer-Owned Cooperatives

Consumer co-ops are owned and controlled by the consumers — individuals who shop at the co-op. The main purpose of a consumer-owned cooperative is to serve the needs of its members through high-quality products or services. Members are typically entitled to one vote regardless of how much they spend on the co-op. They can influence product selection, store policies and community initiatives. Members benefit from the co-op by receiving net savings or discounts on goods and services.

Retailer-Owned Cooperatives

Retailer-owned cooperatives are owned by independent business owners or small retailers. They pool their resources together to increase buying power and compete with larger chains. In retailer-owned cooperatives, the member businesses collectively own the co-op. They focus on supporting other independent retailers, working together to negotiate bulk purchasing, marketing their businesses and conducting logistics. Profits and benefits are distributed to the member businesses while they remain independently owned.

The National Cooperative Business Association CLUSA International (NCBA CLUSA) is the leading national advocate for all cooperatives in the U.S. We represent the interests of both consumer and retailer co-ops before Congress, federal agencies and state governments to ensure access to funding, fair tax treatment and inclusion in government programs.

The Importance of Retail Cooperatives

Retail co-ops empower consumers to take ownership of their shopping experience and contribute to a brand with a people-focused mission. For example, REI has millions of members who benefit from its profits through annual dividends and rewards.

Retail cooperatives also make people stronger through ownership, agency and a mutually supportive economic model. By pooling resources, small store owners can negotiate more favorable prices. Retailers can pass their savings on to their customers and more effectively compete with larger outlets. Residents in the surrounding communities benefit from:

• Increased competition with overall lower prices.
• Enhanced product variety and higher-quality goods.
• A more robust local economy with additional job opportunities.

Co-Op Associations in the Retail Sector

These global organizations advocate for the millions of cooperative enterprises around the world:

Consumer Co-operatives Worldwide

Consumer Co-operatives Worldwide (CCW) is a global sectoral organization of consumer-owned cooperatives. It advocates for the interests of consumer-owned co-ops around the world, facilitates knowledge sharing among members and promotes industry best practices. CCW works to ensure member-owned businesses are represented in international policy.

Cooperatives for a Better World

Cooperatives for a Better World (CBW) is an international nonprofit established to raise awareness of the cooperative business model. The organization provides educational resources and supports advocacy campaigns to highlight the significance of cooperatives in driving social, economic and environmental progress. Their work goes beyond retail co-ops and encompasses cooperatives as a whole.

International Cooperative Alliance

The International Cooperative Alliance (ICA) is recognized as the world’s leading global cooperative organization. It represents all types of cooperatives in more than 100 countries, sets international cooperative principles and advocates for co-ops at the highest policy levels, including the United Nations (UN).

Advantages of Joining NCBA CLUSA

Joining retail cooperative associations as members and owners is a significant advantage for individuals. For NCBA CLUSA members, it means becoming part of a national network of co-op leaders, experts and peers across all sectors. Joining our organization offers co-op benefits, including:

• Gaining a voice in advocacy. Your membership amplifies the advocacies of the organization for fair policies, funding and government recognition.
• Exclusive access to resources. Being part of the NCBA CLUSA gives members access to valuable resources for education and professional development. These include educational materials, research, trainings, workshops and toolkits tailored to your specific cooperative needs.
• Invitation to events and training. NCBA CLUSA extends exclusive invitations to conferences, webinars and leadership programs designed to build essential skills for the members’ respective cooperatives. We also encourage participation in networking events that help foster collaboration among members.
• Grant and funding opportunities. Members of the NCBA CLUSA stay informed about government grants, technical assistance and funding programs that aid co-op development.
• Credibility and visibility. Your membership serves as a testament to your commitment to cooperative values and keeps you connected to a respected and internationally recognized organization. It adds credibility to your cooperative and lends visibility to your advocacies.

Why Choose to Join Us?

NCBA CLUSA is the top national advocate for all U.S. cooperatives. Our experience and expertise in the sector enable us to champion the interests of all cooperatives and ensure proper representation in policymaking. Becoming a member of NCBA CLUSA offers:

• An inclusive and cross-sector organization: We cater to the needs of all types of cooperatives, including retail co-ops. NCBA CLUSA understands the importance of representation, and we are recognized for having a comprehensive co-op association.
• A member-focused purpose: Every cooperative has unique purposes and objectives. Retail co-ops, for example, center on serving the community’s economic, social and cultural needs. At NCBA CLUSA, we tailor our support according to what each cooperative needs to help achieve success and growth.
• Mission-driven objectives: We are committed to fulfilling our mission of building a more resilient and people-centered economy. We prioritize long-term community well-being through programs geared toward economic stability.
• A proven track record: NCBA CLUSA leverages over 100 years of leadership in the industry, promoting and defending the cooperative business model. Our global work includes international development initiatives that help alleviate poverty, strengthen community governance and promote sustainable livelihoods.

NCBA CLUSA Stands With Cooperatives

Retailer cooperatives prioritize their members more than the bottom line, allowing them to offer a competitive alternative in a shifting retail market. NCBA CLUSA values the history of cooperatives, continuously working to strengthen co-ops and catalyze lasting economic growth in communities. For more than a century, our members and partners have helped us improve the lives of individuals and families through the cooperative business model.

We invite you to become a member of NCBA CLUSA and contribute to our goals in advocacy and education. Contact us online for more information.