27th May 2016
The Co-op has announced that it will reintroduce its members’ dividend by 2018, in a bid to return to its roots and give more back to customers.
In the meantime, Co-op will give £100m a year in other benefits to its eight million members. From autumn, members will get 5% of the value of their purchases of Co-op own-brand services back – excluding purchases from the Co-operative Bank.
The rewards, which are separate to the dividend, will go into members’ accounts and can be used towards Co-op branded food and services. An additional 1% will be distributed for members to donate to good causes.
“This is what the Co-op is all about,” says Co-op chief executive Richard Pennycook. “Big business is often accused of taking money out of communities – we are putting it back in as we champion a better way of doing business for our members and their communities.
“Our intention is to return to paying a dividend again, but we also want to make the rewards for members who trade with the Co-op more meaningful and community focused.”
Both steps form part of a major revamp, which includes reviving the blue cloverleaf logo that the brand first introduced in 1968. It was later refreshed in the 1990s, before largely being replaced by the new ‘Co-operative’ branding.
The three-year plan puts customers at the centre of the Co-ops business strategy and demonstrates the organisation’s commitment to its members.