Powerful Cooperatives Around the World

Did you know that in the past two years, Spain's cooperative, Grupos Eroski, has become the second largest retailer in the country with sales of $4.5 billion? Or that Japan's Consumer Cooperative has over 21 million members?

Spain's Eroski began as a restructuring of a small chain of cooperatives in the quiet valleys of the Basque country in the 1950s. Now Eroski and its partner cooperatives are a Spanish giant, with markets, travel agencies, and gas stations, and they employ over 28,000 people. Over the last five years their sales have topped $4.5 billion and they have distributed over 40 million euros to their members. (about $30 million)

Eroski's pitch has always been that unless the Spanish-owned regional cooperatives unite under one banner, no Spanish cooperative will stay in business. They are strongly regional in their marketing and product selection which has given them an important advantage over their non-Spanish European counterparts. The major European cooperatives have gotten the message too. InterMarché of France (second largest retailer in France), Co-op Italia (largest retailer in Italy), and Eroski, are gearing up to take on Wal-Mart, now active in Britain. Their aim is to keep Wal-Mart from encroaching into the rest of Europe.

In Asia, Japan's food co-ops are the largest such sector in the world, numbering 450 retail co-ops. Sales are $25 billion. Their amazing membership numbers of 55,000 continue to make the United States look underdeveloped. Mostly located in dense, urban settings, Japanese food co-ops have seen strong growth in the relatively new fields of home delivery and internet ordering. These account for over $2 billion annually.

Internet operations work for the co-ops because members are able to buy through established home delivery and joint purchasing systems. Members may order over the web from their homes, work, or at the stores with a special internet platform offered by the food co-op to its members. Ordering, product information, member comments, co-op news and activities are all available over the web. Delivery fees, high at first, have been reduced over time; in Tokyo the fee is only about $2.00. A minimum of 60 orders per day is said to be the break-even point. Although convenient for many, the sense of community between members may be diminishing.

We live in an exciting and inspiring time. Co-ops everywhere are working hard to give consumers a choice and make the world a healthier place.

"Mondragon Retail Strategy: Eroski Partnership Path," Cooperative Grocer Magazine, November/December 2002 by David J. Thomposon

"Japan Co-ops Endure Recession" Innovate Cooperative Grocer Magazine, November/December 2002

Information from the English-language newsletter of the Japanese Consumer Cooperative Union.