The Co-operative Group doubles dividend to members
The total share of profits dividend paid to members
of The Co-operative Group will be double that of last year it was revealed today (26 June). The Co-operative
, which is the UK’s largest mutual retailer, will pay members a total share of profit payment for 2007 of £38.1m compared to £19.6m the previous year.
Members receive a cash payment based on the points they earn when they trade at any of the Group’s businesses, which include: The Co-operative Food; Travel; Pharmacy and Funeralcare as well as The Co-operative Bank and The Co-operative Insurance.
The value of each point varies year-on-year because the dividend payment is linked to the profits of The Co-operative Group, which were up 8.6 per cent at £431.6m last year. For 2007 a point is worth 2.63p up from 1.43p in 2006.
The payments will be paid in the form of vouchers, which can be spent or cashed in the stores, or into a bank account.
More than one million of the members, who will be receiving a payment in the next few days, 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 £550,000 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. In the past year more than 100,000 members responded to the consultation on The Co-operative Food ‘s new ethical policy.
Patrick Allen, Director of Marketing at The Co-operative Group, said: “It is only right that our members, who ultimately own and control the business, share in our success. Last year the Group as a whole delivered a strong performance which resulted in a significant increase in profits. We completed the merger with United Co-operatives and accelerated the rollout of the new “The Co-operative” brand across our family of businesses.
“At a time when communities are becoming increasingly dominated by a handful of large and impersonal businesses, we are showing consumers that being a member of The Co-operative is a totally different experience from being just a loyalty cardholder with another retailer.”
Notes to editors
Each year the value of a membership point is determined by how much profit the Group makes. For 2007 payment the value of a point has been set at 2.63p. So, if a member earns 100 points they will receive £2.63.
Share of profits payment are paid to members every six months, usually in mid June and late November. The payment in late November is an interim payment.
In most cases a member will earn one point for each pound spent. In the following businesses however, The Co-operative Bank, The Co-operative Insurance and smile, members will receive the following:
- 1 point for every £5 held or borrowed on average in Co-operative Bank or smile current or credit card accounts
- 1 point for every £5 outstanding on a Co-operative Bank or smile loan
- 1 point for every £10 held on average in a Co-operative Bank or smile savings account
- 1 point for every £20 outstanding on a Co-operative Bank mortgage
- 1 point for every £5 borrowed on average in Co-operative Bank flexible loan accounts
- 500 points for holding a Co-operative Insurance home or motor insurance policy for 12 months. (250 points for six months)
Full details of how we work out your share of the profits.