The Co-operative Group members share record £50 million dividend
Members of Co-operative Group will be receiving their share of a record £50 million dividend payment in the next days.
The Co-operative, which is the UK’s largest mutual retailer, is paying members a total share of profit payment for 2009 of £50.4m up from £38.8m the previous year.
Members receive a cash payment based on the points they earn when they trade at any of the Group’s businesses, which include: The Co-operative Food; Travel; Pharmacy and Funeralcare as well as The Co-operative Bank and The Co-operative Insurance.
Based on the Group’s profits of £402m the value of each point earned during 2009 was 2p. The payments will be paid in the form of vouchers or into a bank account.
More than one million of the members, who will be receiving a payment in the next few days, have elected to give at least the odd pence of their payment to community groups whilst others have chosen to forego their entire share of profit dividend. This means more than £1.6m will go directly to charity groups working with local communities.
Patrick Allen, Director of Marketing at The Co-operative Group, said: “It is only right that our members, who ultimately own and control the business, share in our success.
“Last year was particularly successful for us. The trading Group acquired Somerfield, CFS merged with Britannia and we launched the new The Co-operative brand with a high profile advertising campaign.
“As a member the points quickly add up. Someone spending £20 a week in our food stores takes a £1,500 holiday with our travel business and buys a funeral plan would earn £85.80 in the course of a year.”
At the end of 2009 the Co-operative Group had 5.1million members.
Each year the value of a membership point is determined by how much profit the Group makes. For 2009 payment the value of a point has been set at 2p. So, if a member earns 100 points they will receive £2.00. That is a 2 per cent return on food purchases more than double most loyalty card schemes operated by other food retailers.
Share of profits payment are paid to members every six months, usually in mid June and late November. The payment in late November is an interim payment.
The following table show how points are awarded across the Co-operative Group’s family of businesses in 2010.
||Number of points awarded|
|Food, Pharmacy*, Funeral and Online Stores
||1 point for every £1 spent|
|Travel and Legal Services (Wills)
||1 point for every £2 spent|
|Legal Services – conveyancing
|Pharmacy - Prescription Collection Service / Prescription Collection and Delivery Service
|1 point for every £5 spent|
Petrol stations - fuel
|1 point for every £10 spent|
Funeralcare - funeral planning
|2,500 points for a funeral plan not applicable to any other product or service|
Co-operative Bank or smile credit card
|1 point for every £10 borrowed |
Co-operative Bank or smile current or credit card accounts
|1 point for every £10 held or borrowed each month|
Co-operative Bank or smile
|1 point for every £10 outstanding on loan|
Co-operative Bank, smile or Britannia savings
|1 point for every £20 held on average during the year|
Co-operative Bank or Britannia mortgage
|1 point for every £40 outstanding on mortgage|
Co-operative Bank flexible loan
|1 point for every £10 borrowed on average|
Co-operative Insurance home or motor policy
|250 points for holding a policy (125 points for 6 months)|
Full details of how points are earned are listed on our website: www.co‑operative.co.uk/membership