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

  1. 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.

  2. These stores sell the goods on cash basis. So the risk of bad debts is avoided.

  3. These stores are generally located near the residential area for the convenience of the members as well as general public.

  4. The profit earned by the consumer cooperative stores are distributed among the members as bonus.

Limitations of Consumer Cooperative Stores

  1. 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.

  2. Lack of fund or resources restrict the growth and expansion of business.

  3. 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.