Bild 1 - Euro Coop

Profitable and value-oriented business
Combining stronger pan-Nordic purchasing with increased
local focus – a value-based strategy
Leif Linde, Director Swedish Co-operative Union, KF
Snapshot Summary
Swedish Co-operatives
ƒ 3 037 767 members in 54 co-op societies.
ƒ 17 000 employees, 5000 elected reps and 50 000 active members
ƒ Turnover ~ Sek 40 billions (~ 4,3 b€)
ƒ Combined financial strength: economic surplus ~Sek 1300 mil (~120m€),
ƒ Sek 395 millions (~ 40 m€) paid back to members
Times of change
ƒ Consumer dynamics and
market development
ƒ Transformation of Coop
Norden
ƒ A value based vision for
the future
Consumer and
market
dynamics
Continued growth within
the retail sector
ƒ Strongest development for products
with long purchasing cycles (appr
8%+)
ƒ Swedish grocery retail show almost
7% increase
ƒ Consumer co-operative societies as a
whole have continued to lose market
share, currently at 21,6%
The planet is hot stuff
ƒ Exponential interest in the green
house effect
ƒ Reductions in carbon dioxide
emissions demanded before 2020
ƒ Increased pressure on organisations’
interest in and preparations for
counter action
Lifestyle consumption
ƒ Consumption as a means to
express personality and personal
choices
ƒ Sales of organic products continue
to grow
ƒ Organic foods also about personal
health
ƒ Local production, origin and
transport distance matter
Social responsibility and
ethics are requirements
ƒ Demands for monitoring work- and
production conditions
ƒ Fair trade products show rapid
volume growth
ƒ Long heritage of social responsibilty,
approximately 20 million SEK in 2006
Transformation
of Coop
Norden
Focusing on pan-nordic
purchasing
ƒ Combined purchasing volume the key
strength in Nordic set up
ƒ Nordic market of 24 million inhabitants
facing tough competition
ƒ Possibility for enhanced co-operation
in existing partnerships and to create
new ones
A transformation to get
closer to local consumers
Europe
InterCoop
Food
Non-Food
Sweden
Cilab
Local market
Purchasing power
Nordics
Coop Norden
Stores and hyper markets in Coop Sweden and
local co-op societies
To deliver more efficient purchasing to Swedish consumers
Current development
Coop Norden
ƒ Developing plans and organisation
of Coop Trading a/s
ƒ Intensified discussions new partner
ƒ Parallel negotiations among owners
regarding national retail operations
A value based
vision for the
future
The consumer co-operatives’
vision for its business
ƒ
”The consumer co-operative shall
create economic benefits and at
the same time enable its members,
through their consumption, to
contribute towards sustainable
development for people and the
environment”
From vision to strategy
Profitable and value based
retail operations
(business model)
Affordable, sustainable products
and a clear conscience
(member benefits)
Contribute to
sustainable development
(societal mission)
Strategic programs
Vision and
fundamentals
Strategic
programs
Business
drivers
Implementation
and delivery in
ongoing
business
Vision for the business
and core values
Business mission
Societal mission
Member benefits
Pricing
Store services/concepts
Growth, investement
Product assortment
Member influcence
Partnerships, suppliers Service, commitment,
Beneficial membership leadershiop
Cost reductions
Productivity increase
Coop Konsum,
Extra and
Nära
Coop Forum
Coop Bygg
Real estate
operations
Financial
services
through
membership
Synergies
Media
companies
within the
KF Group
Other
businesses
within KF
Combining strength of volume
with depth of local insight
ƒ Recent initiatives in order to
maximise efforts and increase
efficiencies
Joint chain and concept
management and ”master brand”
► National logistics operations
► Development of real estate fund
►
Moving ahead
ƒ Ongoing and new joint efforts, as
examples:
Attractive store offers
► Training and leadership
► Enhanced membership
► Investment and growth
►
ƒ Common grounds larger than ever
before, agreement on fundamentals