Co-operating with capitalism

My father, like many of his generation, can still tell you his family's Co-op 'divy' number 50 years after he last used it. In the days before supermarket loyalty cards, the divy (a form of dividend which related to how much you'd purchased over a certain period) were the reward points of their day.

He and his parents were regular shoppers at the Co-op food store in Coalville, which 50 years ago was based in Marlborough Square. They also bought goods from the nearby Co-op department store. Later I would get my shoes throughout primary school and my parents would buy many household goods from the same Belvoir Road store.

As with many working class families in that era, the Co-op offered an affordable way of buying quality groceries, clothes and homeware. Remembering your divy number would mean you might be able to buy something extra at the end of the month.

Co-operative societies offering goods for sale were developed in the 19th century as a way of enabling workers displaced by the Industrial Revolution to buy quality food and clothing. The birthplace of the modern movement is credited to Rochdale in Lancashire - a road in Moscow was famously renamed Rochdale Street during the Communist era.

The Co-op movement, like the John Lewis Partnership, was able to adapt and survive as modern consumer-led capitalism developed. It did away with its divy system, preferring instead to focus on its reputation for quality, customer service and good ethics.

However, such virtues are not enough these days, as the growth of online retailing has made pricing and delivery infrastructure king. The Co-op has neither the cash nor the inclination to take on its larger rivals in cyberspace. Indeed spending many millions taking a brand based on principles of mutualisation and co-operation online would seem a rather redundant act given that most users regard the internet as the very embodiment of the utopian global village the hippy and eco movement strived for in the 60s and 70s. It is one of the main reasons why so many have lost money and reputation trying to commercialise the internet over the years.

These factors are behind what led Midlands Co-op to announce on Monday they were closing nine department stores, including outlets in Wigston and Coalville (pictured above), putting more than 380 jobs at risk.

I can't remember the last time I set foot in a Co-op store, whether a department store or supermarket. I'm sure there are many like me. Co-op supermarkets have developed a reputation for being both high on ethics and price. It's a tricky selling point to have in recessionary times and one I certainly don't buy into - indeed I'm sceptical about the whole 'ethically sourced' concept, but that's another blog for another day. The department (or 'fashion and home') stores suffered from the same reputation. Not only is it cheaper online, you could pick it up at a lower price at Curry's, and they have more choice and better parking. And if your priority is quality assurance mixed with the 21st century version of 'ethical capitalism' there's always John Lewis.

The closure of the two Leicestershire stores will leave large empty spaces on the main streets of two towns already suffering from numerous shop closures. The Co-op say they may have other plans for the Wigston site, but it seems there will be no second life for the Coalville outlet, which has been a fixture in the town for decades (my mum worked in the chemist at the side after leaving school at 16). It's feared it could stand empty for years after the Co-op vacates in six months' time.

It's future may be unclear, but I know for certain that next time I go past the Coalville Co-op department store with my dad, he will recite his divy number with a tear in his eye.