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Key question in these cases is why dont the consumer members care? My main hypothesis is that it the values of the members that have shifted, and the Coops hav
by s1artibartfast 2y ago
Key question in these cases is why dont the consumer members care?
My main hypothesis is that it the values of the members that have shifted, and the Coops have followed that. I can speak mostly to REI, but they carry a array of products and mostly high end products because that is what sells. Most customers aren't value buyers.
A different hypothesis is that many retail margins are already incredibly low, and the relative value of consumer co-ops has eroded. Walmart has a profit margin of ~2%, and a global logistics change. That is hard if not impossible to undercut. REI cant compete on price for equivalent goods even if wanted to, so there is a pivot to premium service & luxury items.
I am a big fan of cooperatives, but it hard to find a niche for them to actually provide consumer value