Overview of Retailer-Sponsored Cooperatives
Retailer-sponsored cooperatives (RSCs) are member-owned purchasing organizations that enable independent retailers to purchase products and services from participating vendors. By forming a cooperative, retailers can leverage the collective purchasing power of the group to negotiate better prices and improved credit terms. In addition, RSCs typically offer additional services such as access to marketing, advertising and promotional programs.
Benefits of Retailer-Sponsored Cooperatives
Retailer-sponsored cooperatives provide independent retailers with a number of advantages, including:
- Lower prices: By forming a cooperative, retailers can negotiate lower prices with suppliers, resulting in increased profits.
- Improved credit terms: By combining their buying power, retailers can also negotiate better credit terms from suppliers.
- Enhanced marketing and promotional programs: RSCs often provide additional services such as access to marketing, advertising and promotional programs.
- Education and training: Many RSCs offer educational programs and training sessions to help members stay up to date on industry trends and best practices.
Examples of Retailer-Sponsored Cooperatives
There are a number of well-known retailer-sponsored cooperatives in the U.S. and Canada, including:
- United Natural Foods, Inc. (UNFI): UNFI is the largest wholesale distributor of natural and organic food products in North America.
- SuperValu: SuperValu operates more than 2,400 independent retail grocery stores across the U.S. and Canada.
- Associated Food Stores: Associated Food Stores is a marketing and merchandising cooperative serving independent grocery stores in the western U.S.
- Topco Associates: Topco Associates is a food retail cooperative that provides its members with access to private label and national brand products.
Retailer-sponsored cooperatives provide independent retailers with a number of advantages, including lower prices, improved credit terms, enhanced marketing and promotional programs, and educational opportunities. By leveraging the collective purchasing power of the group, retailers can improve their competitive position in the marketplace.
References
[1] Retailer-sponsored cooperative [2] United Natural Foods, Inc. [3] SuperValu