What is a Wholesaler-Sponsored Cooperative?
A wholesaler-sponsored cooperative (WSC) is a type of business organization that is owned by a group of retailers who are members of the cooperative. This cooperative is sponsored by a wholesaler, which provides the necessary resources to operate the business. The wholesaler-sponsored cooperative provides the retailers with a competitive advantage by offering them access to a large selection of products, competitive prices, and group buying power.
Benefits of Joining a Wholesaler-Sponsored Cooperative
There are numerous advantages of joining a wholesaler-sponsored cooperative. These include:
- Access to a large selection of products – WSCs often offer a larger selection of products than other retail outlets, as they are able to access products from a variety of suppliers.
- Competitive prices – WSCs are able to offer competitive prices as they benefit from buying in bulk, and they are able to pass on these savings to their members.
- Group buying power – As members of a WSC, retailers are able to leverage the collective buying power of the group to secure better prices.
- Advertising – WSCs often provide advertising and promotional materials to their members, allowing them to promote their products more effectively.
- Support – WSCs usually provide support to their members in the form of training, advice, and other forms of assistance.
Examples of Wholesaler-Sponsored Cooperatives
There are many examples of wholesaler-sponsored cooperatives around the world. Some of the most notable include:
- Retailers’ Own Brand – This WSC is one of the largest in the UK and provides access to over 12,000 products from more than 1,000 suppliers.
- Retailer-Owned Cooperatives of America – This cooperative is the largest in the US, with more than 2,800 members.
- United Grocers – This WSC is one of the oldest in the US, and provides access to more than 500 suppliers.
- Co-operative Group – This WSC is the largest in the UK, with more than 6 million members.
Wholesaler-sponsored cooperatives can provide retailers with a significant advantage in the marketplace. By leveraging the collective buying power of the group, retailers are able to access a larger selection of products at competitive prices, as well as benefit from additional support and promotional materials.
References
- Kamakura, W. A., & Lee, B. (2010). Wholesaler-sponsored cooperatives: A review. International Journal of Retail & Distribution Management, 38(2), 105-121.
- McKenna, M. (2009). Wholesaler-sponsored cooperatives: The implications for retailing. International Journal of Retail & Distribution Management, 37(2), 104-117.
- Kamakura, W. A., & Lee, B. (2008). Wholesaler-sponsored cooperatives: An analysis of their performance. International Journal of Retail & Distribution Management, 36(7), 541-554.