What was happening in the world in 2000 Tony Blair was Prime Minister Millennium Dome opens its doors – 1 st Jan 2000 Y2k – a damp squib! Microsoft releases Windows 2000 Northern Ireland Peace Process sees new Assembly established Dot Com bubble bursts Russian submarine Kursk sinks with all hands in Barents Sea Sydney hosts the Olympic Games George Bush declared President by Courts a month after election Millennium Dome closes its doors – 31 st December 2000!
The state of the Co-operative Movement in 2000 Key Statistics 2000 Number of Retail Societies46 Turnover of consumer co-operatives£9.6 bn Return on capital employed7.4% Trading Profit (% sales)2.6% Share of the retail market6.8% Number of Members in Cuk59 Number of Federal Members in Cuk4
And on to the Co-operative Commission Launched on the 24 th February 2000 12 members from Labour Party, Trade Unions and Co-ops First meeting 29 th February 2000 Held public hearings across the country Took written evidence Published report in January 2001 60 recommendations directed to the Co-operative Group, Co-operatives UK and Government
And on to the Co-operative Commission Focus: 1.What is the vision of the co-operative movement as we enter the new century – in terms of commercial objectives and social goals? 2.How close to delivering the vision are we? 3.What structures do we need to close the gap between the vision and the reality?
So where is the co-operative movement today Key Statistics20002011 Number of Retail Societies4624 Turnover of consumer co-operatives£9.6 bn£16.1bn Return on capital employed7.4%12.8% Trading Profit (% sales)2.6%6.3% Share of retail market food2.5%6.8% Number of Members in Cuk59671 Number of Federal Members in Cuk415
How have we fared against the recommendations? The CRTG: In 1993 when founded there were 4 members accounting for £2.2bn turnover, 30% of total Co-op volume through 740 stores Today, 21 members, accounting for £7.5bn turnover, 100% Co-op volume through 4000 stores
New Ventures: the traditional consumer business – new business sectors: The Co-operative Group’s public services mutual (launched last month) schools
How have we fared against the recommendations? New Ventures: the growth of the Technology sector
How have we fared against the recommendations? New Ventures: the growth of the community sector ViRSA
How have we fared against the recommendations? Societies now using the Group Membership card Midlands Midcounties Anglia Southern Chelmsford = 85.6% of total membership
How have we fared against the recommendations? “The 1958 Commission report had been prescient in it its analysis and right in nearly everything it recommended and yet the movement had failed to implement it. That must not happen this time” So what is the assessment of the impact of the Commission of 2000?
How have we fared against the recommendations? Progress Across the Board: -Recommendations were focused and largely the right ones. -Nearly all 60 recommendations have been adopted -Strong professional and lay leadership in the movement -Prevailing mood in the movement that change was crucial -Consolidation of the consumer movement -Unity of the wider movement in face of increasing challenge -Political and trading environment moved in movement’s direction -Impact of huge investment in public facing businesses -Power of advertising on values and principles -Massive growth of confidence of, and in the co-op model of business
So where now? - the UK’s retail markets are some of the most sophisticated in the world and development potential is limited - the movement has not been in such a strong position in the public, political and media consciousness for many decades - the local, community renaissance of our model of business continues and in fact is boosted by the difficult economic circumstances. - the changes in the UK movement are now being copied and adapted across the world eg brand, family unity, emphasis on principles etc
So where now? - Continue to grow into new sectors of the domestic economy eg Group’s legal and advice service eg Midcounties energy business - Public sector services? - Current business sectors where public trust is low or has been lost? - Seek business synergies or opportunities internationally? - Explore opportunities to improve margins through C2C joint ventures or sourcing eg Group’s Chinese development.