Central Co-op and Chelmsford Star Co-op have pledged to offer better value for members upon their merger next month, by combining buying powers and member perks.
Last week, members of Chelmsford Star Co-op voted in favour of a merger with Central Co-op, which is set to take place on 15 September.
The merger will strengthen its negotiating position among local suppliers, which don’t fall under its national agreement with buying group Co-operative Federal Retail & Trading Services, Central Co-op said.
Its members will also move on to the Central Co-op membership proposition eventually, giving them access to Central Co-op’s membership app and its new cashback-style rewards initiative, which is replacing Central Co-op’s member pricing from September.
The latter will see members receive money on products that have a cash reward benefit, which can either be spent on their next shop or saved up over time. Chelmsford Star Co-op will continue to offer member pricing until its membership scheme is transferred.
Chelmsford Star Co-op will also get access to capital to invest in stores including installation of solar panels, which forms part of Central Co-op’s green energy self-sufficient initiative. Central Co-op will also be extending its Malawi partnership by selling the products that are produced by co-ops in Malawi into Chelmsford Star Co-op stores.
Chelmsford Star Co-op’s trading name and heritage will be retained locally for its sponsorships and community fund programmes.
“It’s exciting and probably quite different from how transfers of engagement and mergers between Co-ops have happened before,” said Robinson. “We feel we’ll be a stronger society with Chelmsford as part of it and maintain and celebrating those local differences.”
Central Co-op explained that with the integration of the two organisations, it expected there would be some overlap in business operations, particularly in support centre functions.
Its approach will be to identify which local roles are required in the enlarged society and ensure Chelmsford Star Co-op colleagues have the opportunity to apply for any existing vacancies at Central Co-op.
Any colleagues who may be at risk of redundancy will be fully consulted and supported, with all contractual and union agreements honoured.
For colleagues that are retained, it is exploring options for a regional satellite office in the Chelmsford area. No exact site has been confirmed yet, but this would enable Central Co-op to retain a local base so that Chelmsford Star colleagues have the choice of a local support centre as well as Central Co-op’s Lichfield facility.
Following the transfer, Robinson will lead the enlarged society. Barry Wood, Chelmsford Star Co-op’s CEO, will move on to a new venture after leading the organisation through the process.
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