A cooperative grocer is a store format that has been around for many years and plays a unique role in community food systems. These stores are shopper owned, shareholders that capitalize the stores initially and receive a patronage based on the amount of shopping the do. The National Cooperative Grocers Association reports 165 member co-ops managing 240 storefronts in 37 states – a combined sales over $2.5 billion (NCG, Oct 2024). While more stores tend to be located in the upper Midwest and coastal states, there are strong co-ops across the South.
Stores typically place a strong value on local sourcing, sustainability, wellness, and bulk buying – many had roots in older community buying clubs. And while they tend to be much smaller than regional or national chains, they are quite nimble as they seek to serve the community and local shopper-owners.
Table 1. Food Values from Different KY Shopper Segments
A recent study of shopper values in Kentucky reflects a common difference in food values seen in many food co-ops – a stronger emphasis on community, the environment, and wellness. This generally translates into unique retail product offerings and merchandising around these concepts, including a high value for local and sustainable food connections. Many of these stores, with their smaller size, are better suited to work with smaller supplier vendors and serve as great entry points into wholesale markets.
These grocers, while technically independent, often work together through the National Coop Grocers on issues like governance, capitalization strategies, and advocacy issues. Their commitment to their shopper-owners, vendors, and communities provides a unique platform for these ventures to bring value to the food world not generally found through other store concepts.
You can learn more about the National Cooperative Grocers Association and some of the food co-ops near you at their website: https://www.ncg.coop/about-us
Woods, Tim. “Cooperative Grocers Positioning Strategically to Deliver Community Value.” Southern Ag Today 4(51.5). December 20, 2024. Permalink
