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Top UK co-ops agree merger terms | Top UK co-ops agree merger terms |
(19 minutes later) | |
The boards of the UK's two biggest co-operatives have agreed the terms of a merger that would form the world's largest consumer co-operative group. | The boards of the UK's two biggest co-operatives have agreed the terms of a merger that would form the world's largest consumer co-operative group. |
Manchester-based Co-operative Group and Rochdale-based United Co-operatives have a combined workforce of more than 87,000 staff and more than 4,500 sites. | |
The tie-up would create an organisation responsible for more than 80% of the co-operative retail trade in the UK. | |
Members of both societies are being recommended to accept the proposal. | |
The Co-operative Group has 3.5 million members, while United Co-operatives has 930,000. | The Co-operative Group has 3.5 million members, while United Co-operatives has 930,000. |
They will meet in April and May to consider the merger and if it is approved, the new enlarged society is expected to begin operating in late July. | |
The enlarged group would operate from sites stretching from Cornwall to the Scottish Islands, with particular strength in the north of England and the north Midlands. | |
Market share | Market share |
The Co-operative Group is the UK's largest, with an annual turnover of £8bn. United Co-operatives has a turnover of £2.5bn a year. | The Co-operative Group is the UK's largest, with an annual turnover of £8bn. United Co-operatives has a turnover of £2.5bn a year. |
They provide a range of businesses including food retailers, financial services, funeral services, pharmacies and shoe repairers. | |
A Co-operative Group spokesman said it was too early to say if a merger would result in job losses. | A Co-operative Group spokesman said it was too early to say if a merger would result in job losses. |
In general, co-ops are owned by customers and employees who have chosen to become members by investing a minimum of £1. | |
Co-operative retailers had a 20% share of the British grocery market in the 1950s, but have lost ground to supermarkets in recent years and seen their share shrink to closer to 6%. | Co-operative retailers had a 20% share of the British grocery market in the 1950s, but have lost ground to supermarkets in recent years and seen their share shrink to closer to 6%. |
There are currently around 35 co-operative groups in the UK. | |
The first retail co-operative was founded in Rochdale in 1844 as the Rochdale Pioneers Society, which is now part of the United Co-operatives group. | |
In 2000, Co-operative Wholesale Society and the Co-operative Retail Society merged and in 2002 it changed its name to the Co-operative Group. |
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