Consumer Cooperative Store is another form of large scale retail trade which is owned by the cooperative society. When the consumers of a particular area or group find it difficult to get the items of daily necessity they usually form a cooperative society and run the retailing business.
The consumer cooperative store purchase the goods directly from manufacturers or dealers and make them available at a cheaper price.
Merits of Consumer Cooperative Stores
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The consumer cooperative stores generally provide the goods at a lower price than the market, because they eliminate the profits of middlemen in the process of distribution.
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These stores sell the goods on cash basis. So the risk of bad debts is avoided.
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These stores are generally located near the residential area for the convenience of the members as well as general public.
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The profit earned by the consumer cooperative stores are distributed among the members as bonus.
Limitations of Consumer Cooperative Stores
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The consumer cooperative stores generally suffer from the limitations of inadequate funds because these stores are formed by the people belonging to limited income group.
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Lack of fund or resources restrict the growth and expansion of business.
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These stores are managed by the member who may not have sufficient experience in business management. Again, due to limited funds it is also not possible to engage professional managers.