Co-op members to share £38m Dividends

26 06 2008

The Co-operative Group, or “Co-op”, announced that its members, around 2.5 million of them, will be given £38m under its dividend scheme. This may not come as a surprise to many as yesterday discount stores Aldi and Lidl reported an increase in growth. This may be due to the fact that since more and more people are finding it hard to make ends meet, they try to shop around looking for the best deals rather than shop from one retailer alone. Most stores have products with a mixture of prices where some items are priced below their rival’s in order to undercut them while some are priced higher to make up for that loss. Since many consumers have started shopping around, thereby avoiding the expensive items and buying the cheaper ones, this has perhaps lead to a drop in the market share and possibly also the profit of many large supermarkets as they would be counting on making money from the expensive items.