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What is a Co-Op Store?

Mary McMahon
Updated May 16, 2024
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A co-op store is a store which is owned and controlled by members of a cooperative, rather than a single store-owner or corporate entity. The cooperative tradition dates back to the 1700s in Great Britain, when workers began organizing in cooperatives in an attempt to get around usurious prices for basic goods, housing, and other services. Today, cooperative stores can be found all over the world, and some of these stores are extremely successful business entities.

The idea behind a co-op store is that it works for its members, rather than being an engine of profit. Because no profits are expected, the store can keep wages high and costs low, allowing members of the cooperative to benefit. Co-ops can sell things like groceries, books, and a variety of other consumer goods, and the cooperative concept can also be used in housing, banking, and a variety of other industries.

In a cooperative store, the members of the co-op vote on issues of importance to the store as a collective, rather than allowing one person to make decisions. Members might vote for a wage raise, additional benefits to employees, or the use of a new supplier. Some co-ops also use voting to pass resolutions donating funds to local charities. Many also encourage members to volunteer in the store, or in the local community, with the goal of fostering a positive relationship with the surrounding community, and community events, classes, and meetings may be held to bolster community relations.

There are two basic ways in which a co-op store can work. In a worker-owned cooperative, the employees of the store own the store, typically being given shares in proportion to how many years they have worked in the store. Some stores offer dividends to their employees, while others provide set wages and benefits, sinking any excess profit into store improvements. A store may also be run in conjunction with another organization such as a university or political group, in which case profit will be turned over to the parent organization.

A co-op store may also allow individual members of the public to buy membership shares, thereby joining the co-op. In this case, both workers and shoppers control shares, although non-members are usually also allowed to shop at the store. Members typically get access to special rates on goods in addition to voting rights in the cooperative.

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Mary McMahon
By Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a SmartCapitalMind researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Discussion Comments

By myharley — On Jul 01, 2011

For many years I have been part of a food co-op that sells natural and organic products. I have found several advantages to belonging to a co-op market like this. I love being able to get wholesome food and the co-op I belong to has many choices from several different companies.

Another advantage is that you can't beat the prices. If you like to buy food and products from a health food store, a co-op can save you a lot of money. They are all run a bit differently, so you need to know what all the rules are before you join.

We order our products once a month and have them dropped off at a central location. This also gives you the opportunity to meet other people who have similar interests as you.

By Mykol — On Jul 01, 2011

A new co-op grocery store is opening in my community. This store will sell organic and locally grown food. You don't have to be member to purchase their items, but members do get special privileges.

They said the interest in this type of store has been greater than they anticipated. Their current location is only temporary, and they think they will outgrow it in a short time.

I am excited to have another option to buy local and organic food like this. I can see this type of store growing in many places around the country as people are becoming more interested in purchasing food like this. Many are willing to pay a little bit extra to get these kinds of benefits.

Mary McMahon

Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a...

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