The Co-operative group pays £19.6m in share of profits

Members of The Co-operative Group are set to receive a share of profit payment totalling £19.6m for their trade in 2006 it was revealed today (28 June).

The Co-operative, which re-launched its membership scheme last year, will pay an annual share of profits equivalent to 1.43p for each point earned across its family of businesses.

The scheme is unique in that members receive a cash dividend based on the points they earn when they trade at any of the Group’s businesses (food; travel; pharmacy and funeral outlets as well as the Co-operative Bank and Co-operative Insurance (CIS) and the online store Coop Electrical Shop).

These points are then converted into cash and payments are made twice a year in June and December. Because the payments are linked to the profits of the Co-operative Group, the value of the points varies year on year.

The Co-operative allows members to give all, or part, of their share of profit payments to community projects via its Community Fund scheme.

Of the 1.4 million members who will be receiving a payment in the next few days, just under half have elected to give at least the odd pence of their payment to community groups whilst others have chosen to forego their entire share of profit dividend. This means more than £520,000 will go directly to charity groups working with local communities.

Members are also actively encouraged to assert pressure for change on a range of issues including climate change and social exclusion. This level of engagement helps to maintain The Co-operative Group’s reputation for cutting edge initiatives such as Responsible Food Retailing, Responsible Shareholding within Co-operative Insurance and the Co-operative Bank’s “Customers Who Care” campaigns.

It is the combination of all these elements that creates the co-operative difference and which makes being a member of the Co-operative a totally different experience from being just a loyalty cardholder with another retailer.

Since the membership scheme was re-launched in September 2006, more than 500,000 members have joined The Co-operative Group.

Members will receive their individual payments either by cheque, directly into their bank account or in vouchers that can be exchanged for goods or services.

Chief Executive of The Co-operative Group Martin Beaumont said: “Last year was a good one for the Group as a whole and, following the launch of our new membership scheme, for the first time members can reap the rewards of our success across our diverse family of businesses.

“The growth in members since last year clearly demonstrates that many consumers share our belief in self-help, social responsibility and democracy and like us, are prepared to take a stand on consumer and social issues.

“At a time when communities are becoming increasingly dominated by a handful of large and impersonal businesses, we are showing consumers that there is a better alternative, one which is ultimately owned and controlled by them.”

As well as the new style membership scheme, the Group is rolling out a new brand identity, The Co-operative, across its entire estate of more than 3,000 UK outlets, from food to funerals, banking to insurance, travel to pharmacy.