Presentation Title

Cooperative Ownership as a Succession Strategy for Independent Grocers

Presenter Information

Stuart Reid, Food Co-op Initiative

Keywords

Cooperative, Business plan, Succession planning

Description

The presenter introduces the cooperative business model and explores the potential advantages of a transition to cooperative ownership as a viable succession strategy for owners planning to retire or simply get out of the grocery business. I explain the issues that grocery store owners and the community should consider before committing to such a transition, including:

• The need to provide an adequate timeline for cooperative organizing
• Balancing owners’ need for confidentiality and the co-op’s desire for transparency
• The roles of current management and staff during and after transition
• Sources of capital for the buyout
• Evaluating potential long-term viability under cooperative ownership

I then present an outline of the organizing and development process of the cooperative entity and the ways in which the evolving co-op needs to work with the current business owners. Although owners are often reluctant to commit to a lengthy process with uncertain outcomes, the co-op can organize most effectively when they have the owners’ support and participation. Both parties must evaluate the proposed sale—owners want to come out well financially and may have a reputation and legacy that they want to protect, and the co-op must ensure that the grocery store can be viable after the purchase and any new investments they make in the business. Key decision points will be discussed.

This presentation addresses the need for viable succession planning in small rural communities, focusing on the conference objective of charting a path forward for rural healthy food access and familiarizing participants with a less-familiar model of grocery store ownership.

Creative Commons License

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