Co-op GM David Crowell gives Economic Development Committee talk

Pincher Creek Co-op General Manger David Crowell
T. Lucas photo

Toni Lucas

On the afternoon of Thursday, February 27, Pincher Creek Co-op General Manger David Crowell made a presentation to a meeting of the Economic Development Committee (EDC). He brought a slideshow and short film that explained the history of Co-operative associations, how they work worldwide and how Pincher Creek Co-op functions. During his presentation Crowell explained the role, the history, and present outlook of the Co-op in Pincher Creek and area. "The Co-op hires approximately 80 people. In 2013 over $3,000,000 dollars was put back into our community through payroll, taxes and donations. We're pretty proud of that, actually."

The first Co-op ever was started in 1844 in Rochdale, England. 28 partners put in one British pound each to start a store that opened with butter, sugar, flour, oatmeal and candles. Ten years later there were almost 1,000 Co-operatives in England. This has grown to one billion Co-operatives members worldwide in modern day.

There are seven principals to a Co-op. Voluntary and open membership, Democratic member control, Member economic participation, Autonomy and independence, Education - training and information, Co-operation among co-operatives, and Concern for the community.

According to Crowell Canadian Business Organizations recognize private businesses, individual proprietorship, partnership, corporations, crown corporations, and co-operatives. "We are completely different from any other business model you will see, because the people that buy our goods and services also own the company," explained Crowell.

Pincher Creek Co-operative started at a meeting of the Pincher Creek United Farmers of Alberta District Association on January 7, 1922. "It was resolved that immediate steps would be taken to form a Co-operative Association for the purpose of marketing farm produce other than wheat. The result was the organization of the Pincher Creek Co-operative Association Limited."

The Co-op currently has over 6,000 members. Locally the organization has a food store, gas bar, farm and home centre, Cowley branch, cardlock facility and own the Ranchland Mall. "I am happy to announce at this point that in 2013 we had record sales in every one of those areas," said Crowell.

"In our system, we are a Co-operative in Pincher Creek. We as Pincher Creek Co-op are part of a bigger Co-op, which is Federated Co-operatives Limited." That is part of Co-operative Retailing System (CRS) that includes all Co-ops in western Canada from the border of Ontario west to the coast of B.C. "We are a supply Co-op, in the retail business." Other Co-operatives mentioned included financial co-ops, service co-ops, marketing or producers co-operatives, and worker co-ops.

Crowell said he is very proud of the Co-op's local community involvement, explaining the commitment ranges across a diverse demographic of social groups that include children, seniors, sports, social events, and the local food bank.

After the presentation Crowell opened it up to a question and answer session. There was a number of questions that he answered, taking up about the amount of time of the presentation itself.

"Competition is stiff, you have had record sales. What are you doing right?" he was asked. "We're doing everything right," he replied.  "We have done aggressive marketing programs," he elaborated.

"We do our own marketing plan. Now, we do get help from Federated Co-op," he replied, when someone asked who did the marketing plan.

Where do you see the Co-op going in the next 5 years? "Bigger and better. This year we were just shy of $30 million in total sales. In five years our projection is 36 - 37. We have some things on the horizon that will push us to that level."

He was asked about how it affected the Co-op when WalMart came to town. "When WalMart came to town, it hurt. What has changed is perception. Perception is one of the biggest things. We have been working very hard at that. Everyone did think that they were cheaper on everything." Crowell gave examples where similar items may have different weights so the items may appear more economical until you look at how much you are paying for the weight of the item. "It's all price perception. Take a look at the size. Their size is often different than what we have, or Sobeys carry. You have to do the math. Others have."

Previous Mayor and retired Sobeys manager Ernie Olsen admitted he liked shopping at Co-op. "As a shopper I like going into Co-op because I see the same people at the till, in produce, at the bakery, in the deli and so forth. I go into WalMart, I don't know who I'm getting, I may have never seen them before." The consistency is important to him. "I find that as a shopper I really like that."
Crowell explained at least one of the reasons for that consistency. "One of the reasons we maintain our staff is our benefits. Our benefits are second only to government benefits from what I've been told." Extended health, dental long term disability, pension, were mentioned.

Someone mentions  Chamber of Commerce Employee of the Year Award winner and Co-op employee Valerie Bedford-Powell.  "You want a hug? Go see Val," quipped Crowell with a smile. He said he was delighted that she was recognized for her quality of customer service at the Co-op food store. "We had four employees actually nominated, which is pretty phenomenal."

A number of questions were asked about the financial structure. "When we make money, we share it with our membership, through allocations. Some of it we have to put into reserves. But then we can allocate some of it back to our membership. The way we do that is by percentage, a percentage of your purchases."

"In 2009 we did get hit with a pretty rough year. We lost money." At that time the local Co-op had to suspended allocations, general re-payments, and payments for over-age. "We are in the process right now of looking at that policy, and seeing where we can make changes. I can say that we are closer today than we were three years ago."

The board covers the roll of governance and approves memberships. "Since I have been here, I can't recall a meeting where less than 15 new memberships. That's pretty substantial, as far as I'm concerned." He estimated that approximately 15 - 20% of sales come from non-members.

"The mall itself is filling up. The new tenants that we have got in the last year, year and a half, have realized that that it's hard to get parking downtown," said Crowell when asked about the state of the mall. Other issues that are taken care of as a tenant are snow removal, and other maintenance.

When asked if Co-op will start other new business in the area that already have competition within the community Crowell gave examples of car washes and liquor outlets. Co-op does have outlets with those retails. "With that many competitors in town we wouldn't think about it." He went to on to explain that the customer base is already being served in those areas, and Co-op does not see the need within the community. "We have to make money, so you guys make money. It's got to be economically feasible to do."

Some of the items that were brought up by people that they were in favour of that Co-op is already involved in included the gift card re-sales to the high schools, the Legion meat draws, green initiatives, and localize initiative. "Shop local, we do," said Crowell who said this is a slogan that is on the new digital billboard. "We buy a lot of things from Alberta. We promote local, where we can."

Crowell also announced the 2014 Co-op AGM, scheduled for April 24 at Kootenai Brown Pioneer Village (KBPV).  KBPV is recreating facades of a number of local Co-op sthat have been superseded by time, including the old creamery and the old lumberyard. "I think it will be a fun evening. It will allow everyone to see the work that they've done there."