SASKATOON – Competing for consumers’ dollars in Nanaimo, B.C., is a lot different than it is in Outlook, Sask., or Barrhead, Alta.
But officials from the Mid-Island Co-op failed to convince their counterparts from across Western Canada that changes are needed to help them do battle with the Wal-Marts and Safeways of the world.
“We’re asking for a helping hand, not a handout,” Mid-Island director Emil Sorensen told delegates attending the annual meeting of Federated Co-operatives Ltd.
When the votes were cast, they didn’t get either. Only a handful of the 366 delegates from retail co-ops supported a resolution calling for the creation of a task force to look for ways to get more cash into the hands of local co-ops.
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Mid-Island Co-op president Al Stewart said in the intensely competitive environment on Vancouver Island, local co-op managers would like an early indication of how much cash is coming and when.
“We appreciate the large allocation payments from FCL and that a lot of it is in cash,” he told delegates. “We’re just asking here for an earlier indication whether there will be a cash payment.”
Several prairie delegates spoke against the resolution.
Daryl Kuchinka of Estevan Co-op said he sympathized with the situation facing the co-op in Nanaimo, but there is no need for a special task force to look at the issue. He said Federated Co-op already returns significant amounts of money to the locals.
Bill Marshall of the Prince Albert area said that FCL’s board of directors is in the best position to administer the organization’s finances.
“I don’t think we can tie their hands in any way,” he said, while adding that perhaps steps could be taken to improve communications between the board and co-ops in B.C.
Competitive strategy needed
In an interview later, Stewart said the issue isn’t the amount of cash being returned to local co-ops by FCL, but rather the local’s ability to formulate a business plan to remain competitive.
“If we knew a little more in advance we could incorporate it into our annual planning process,” he said.
Sorensen added he doesn’t think members from the Prairies, especially small centres, have any idea how difficult it is for co-ops in places like Vancouver Island to attract business.
Not only is there fierce competition from U.S. owned mega-stores, but there isn’t the same tradition of member loyalty that’s enjoyed by many co-ops on the Prairies.
