Retail

Retailer cooperatives focus on the needs of their members, who may be independent business owners in a retailer-owned cooperative or consumers in a consumer-owned cooperative. While these two models have different ownership structures, both use cooperation to create benefits that individual businesses and consumers may not be able to achieve on their own.

Retailer-owned cooperatives use economies of scale on behalf of their independent business members. By combining their purchasing power, retailers can negotiate better prices, access a wider range of products, share distribution and marketing resources, and compete more effectively with larger businesses. At the same time, individual retailers can maintain their independent ownership and connection to their local communities.

Consumer-owned retail cooperatives operate for the benefit of the people who shop at and own the cooperative. Members collectively support a business that is designed to respond to their needs and shared interests rather than the interests of outside investors.

• Greater competition and potentially lower prices through collective purchasing power and shared resources.
• Expanded product variety and access to high-quality goods that individual retailers may have difficulty sourcing on their own.
• Stronger local economies by supporting independent businesses, local ownership, and employment opportunities.
• Shared resources and services such as purchasing, distribution, marketing, technology, and branding.
• Member participation and ownership, giving members a direct stake in the success of the cooperative.

Recreational Equipment, Inc. (REI Co-op) is a member-owned consumer cooperative that exists to inspire and equip people to spend time outside and enjoy the benefits of the outdoors. The co-op provides outdoor gear, apparel, expertise, and experiences while building a community around a shared enthusiasm for outdoor recreation.

Ace Hardware is a retailer-owned purchasing cooperative made up of independently owned and operated hardware stores. Through the cooperative, local store owners work together to purchase products, build a shared brand, access distribution and marketing services, and gain efficiencies that can be difficult for an independent business to achieve on its own. While individual Ace Hardware stores remain independently owned, their owners collectively participate in and benefit from the larger cooperative network.