1. Consumer Co-operatives in the Nordic countries, 1950-2010 Espen Ekberg Centre for Business history BI Norwegian Business School

2. Plan of presentation Main trends in the development of Western European consumer co-ops after 1950 – the rise and decline narrative The Nordic experience Causes for success A Nordic model of consumer co-operation?

3. The rise and decline narrative Dominates much (most) existing research on consumer co- operatives After having risen to prominence from the mid nineteenth century onwards consumer co-ops went into decline in the period after 1950 The 1989 ICA study: “In general we can resume that the lot of consumer co-operatives in Europe has been not to easy in recent years. At present only the Norwegian movement seems on a path of strong expansion – but it is still very fragmented and may benefit more from its strength in the savings area than from a comparative advantage in retailing. In Italy co-operatives seem to be faring slightly better too, but the state of Italian retailing [...] is one of the most backward in Europe.” Brazda and Schediwy 1989, p. 33

4. The rise and decline narrative Also reflected in popular notions of co-ops the co-op is a remnant of the past/ an outmoded organisational form unable to compete in post-war, capitalist and individualised consumer societies But: What does the data tell us? What characterises the development of post-war consumer co- ops

5. Market shares (food retail) Western European consumer co-ops, 1950-2010

6. Divergence not decline Indeed, many co-ops stagnated massively after 1950, and some collapased totally. But in a number of countries consumer co-ops retained their position and some even expanded substantially. In many countries, consumer co-ops are the dominant providers of food retail services today.

7. Combined market shares (food retail) Nordic consumer co-ops, 1950-2010

8. The three revolutions in post- 1950 food retailing ”The supermarket revolution” - the replacement of the small, numerous counter serviced stores that still dominated the food retail industry by 1950, with large self-serviced supermarkets and hypermarkets “The chain store revolution” - the replacement of the small independent retailer with the large standardised, integrated and centralised retail chains “The consumer revolution” – the development of the affluent, individualised consumer society

9. What explains Nordic success? Nordic co-ops managed to develop their structure of stores to meet with the growth of supermarket, hypermarket and multi-format retailing Nordic co-ops managed to develop their organisational structure to meet with the superior organisational efficiency of the large, standardised, integrated and centralised retail chains Nordic co-ops managed to adapt their ideological profile to meet with the demands and aspirations of the modern, affluent individualised consumer

10. Store formats operated by Nordic consumer co-ops 2009/2010 Store typeNorwayDenmarkSwedenFinland Local stores Coop Marked (14%) DagliBrugsen/ LokalBrugsen (15,9%) Coop NäraSale, Alepa (11,6%) Soft discount Coop Prix/ Extra (32,8) Fakta (21 %)-- Supermarkets Coop Mega (26,9) SuperBrugsen/Irma (39%) Coop Konsum/Coop Extra S-Market (45,8%) Hypermarkets Coop Obs/ Smart Club (26,3) Kvickly/Kvickly Xtra (24,1%) Coop ForumPrisma (42,6%)

11. Major retail groups in Nordic food retailing, 2010

12. Membership in Nordic consumer co- ops, 1950-2010

13. A Nordic model of consumer co-operation? Not really The ”Nordic” success criteria have been equally applied in countries such as Italy and Switzerland Despite overall similarities, also much variation between the different Nordic consumer co-ops

14. Market shares (food retail) Nordic consumer co-ops, 1950-2010

15. Organisational structure in 2010 NorwayDenmarkSwedenFinland National associationsCoop Norge SA FDBKFSOK Separate commercial organisations/subsidiaries Production, wholesaling, buying, chain management, marketing Retailing, wholesaling, franchise management, advertising Retailing, buying, wholesaling, membership/ loyalty program, marketing, banking, publishing and book stores Buying, wholesaling, chain management, hotels and restaurants, agricultural trade, automotive trade services, foreign retailing, banking Number of independent retail societies 1273544430 Independent retail societies’ share of food retail sales 97%35%50%100% (in Finland) Organisational modelFederalHybrid Federal

16. Four growth strategies Organic growthGrowth through acquisitions Federal structureNorwayFinland Hybrid structureSwedenDenmark

17. Consumer Co-operatives in the Nordic countries, 1950-2010 Overall market growth, but substantial variation between countries Handled the three revolutions in the food retail sector well But not similar strategies Pragmatic attitude towards the goals and principles of co- operation. Able to re-aligning modern retailing practices with the more traditional virtues of the co-operative model.