A retail institution which is established and operated by the community members is called cooperative stores. There are some specific features of co-operative stores such as voluntary membership, service motive, cash sale, democratic management, no middlemen etc.
The main features of co-operative stores are as follows:
The main features of co-operative stores are as follows:
1. Open and voluntary membership
Any consumer can be a member of co-operative store voluntary. The consumers having same interest and mutual feelings get organized themselves, establish co-operative store and operate it.
2. Service motive
Service motive is an unique feature of co-operative stores. A co-operative store buys and sells consumer goods., but its purpose is not to earn profit but to provide service to its member. So, it is established with service motive.
3. Capital
Consumers co-operative society collects necessary capital for establishing and operating co-operative store by issuing small units of share. The consumers acquire membership of the co-operative store purchasing such shares. A consumer should purchase at least one share and many purchase more share units to the limit as fixed for a member.
4. Cash sale
Consumer co-operative store sells goods only for hand cash, but it does not give credit facility.
Also Read:
5. Democratic management
Another feature of co-operative stores is democratic management. Management, control and operation of a co-operative store is based on democratic system. Whatever units if share a member has purchased, management committee is elected on the basis of one member one vote.
6. Elimination of middlemen
Co-operative store directly deals with producers and purchases large quality of goods directly from them. Hence, a co-operative store aims at eliminating middlemen.
