Lothian, Borders & Angus Co-operative Society
Encyclopedia
Lothian, Borders & Angus Co-operative Society Limited (Lothian Co-op), founded in 1839 in the Scottish Borders
, was the oldest independent consumer co-operative in Scotland
until it merged with The Co-operative Group
in December 2008.
It operated over 50 food stores
in the south and east, as well as some other retail businesses, and funeral services
.
At the time of the merger, Lothian Co-op was owned by 65,000 consumer members on a one member one vote basis.
On the 19 August 2008, the board of the society agreed to propose the transfer of the society's engagements to the much larger Co-operative Group. The proposed transfer was considered by Lothian Borders & Angus members at a series of meetings in the autumn and, with a majority of the membership in favour of the proposal, the transfer of engagements took place on 13 December 2008.
and Hawick
.
The Galashiels co-operative was formed by a mill workers' association that was already operating along similar lines.
The Hawick and Galashiels co-operatives were formed in 1839, five years before the Rochdale Pioneers
shop opened in England
.
Therefore Lothian Co-op was, at the time of merger, probably the oldest continuously trading consumer co-operative in Scotland.
Through 1991, the Galashiels co-operative expanded through mergers to serve the Scottish Borders
and Dumfries and Galloway
regions. In 1992, Border Regional Co-operative Society merged with East Lothian Co-operative Society (based in Tranent
), becoming Lothian and Borders Co-operative Society. In 1998, it absorbed East Angus Co-operative Society of Arbroath
, taking its final name and structure.
In the early 21st century, growth continued through new construction and acquisitions from other grocers. New construction included a supermarket
in Castle Douglas
, and purchases included a former SPAR
store in North Berwick
, a filling station in Lauder
, and, notably, nine convenience store
s sold by Somerfield
in 2006, Lothian Co-op's first operation in Aberdeenshire
.
Operating 52 food stores
in southern and eastern Scotland
, as well as pharmacies
, funeral services
, post office
s, petrol stations, and a furnishings store in Selkirk,
it was the smaller of Scotland's two regional consumer co-operatives until 2008, the larger being Scotmid
, and one of four altogether.
Lothian Co-op was a member (customer owner) of The Co-operative Group
, sourcing its food through a UK-wide buying programme called the Co-operative Retail Trading Group
.)
From 2006, it bought home furnishings stock through the Anglia Buying Group, a national buying programme operated by Anglia Regional Co-operative Society
.
Chief executive Bob Jamieson served as a director of The Co-operative Group from 2005.
Like most retail consumers' co-operatives in the UK, Lothian Co-op was incorporated as an Industrial and Provident Society
, regulated by the Financial Services Authority
.
to members, though each year around £90,000 of profits was distributed to local causes as “Community Dividend Grants”, and taxable profit was re-invested in the business. A voluntary president and board of directors were elected from among the members holding at least four shares, on a one member one vote basis; the board supervised the chief executive and management. Like many UK listed companies and co-operatives, the board had an audit sub-committee responsible for internal controls, following the 1999 Turnbull Report
.
Scottish Borders
The Scottish Borders is one of 32 local government council areas of Scotland. It is bordered by Dumfries and Galloway in the west, South Lanarkshire and West Lothian in the north west, City of Edinburgh, East Lothian, Midlothian to the north; and the non-metropolitan counties of Northumberland...
, was the oldest independent consumer co-operative in Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
until it merged with The Co-operative Group
The Co-operative Group
The Co-operative Group Ltd. is a United Kingdom consumer cooperative with a diverse range of business interests. It is co-operatively run and owned by its members. It is the largest organisation of this type in the world, with over 5.5 million members, who all have a say in how the business is...
in December 2008.
It operated over 50 food stores
Grocer
A grocer is a bulk seller of food. Beginning as early as the 14th century, a grocer was a dealer in comestible dry goods such as spices, pepper, sugar, and cocoa, tea and coffee...
in the south and east, as well as some other retail businesses, and funeral services
Funeral director
A funeral director , also known as a mortician or undertaker, is a professional involved in the business of funeral rites. These tasks often entail the embalming and burial or cremation of the dead, as well as the planning and arrangement of the actual funeral ceremony...
.
At the time of the merger, Lothian Co-op was owned by 65,000 consumer members on a one member one vote basis.
On the 19 August 2008, the board of the society agreed to propose the transfer of the society's engagements to the much larger Co-operative Group. The proposed transfer was considered by Lothian Borders & Angus members at a series of meetings in the autumn and, with a majority of the membership in favour of the proposal, the transfer of engagements took place on 13 December 2008.
History
Lothian Co-op was the direct successor of nineteenth and early twentieth century consumer co-operatives in its trading area, the oldest being in the border towns of GalashielsGalashiels
Galashiels is a burgh in the Scottish Borders, on the Gala Water river. The name is often shortened to "Gala" .Galashiels is a major commercial centre for the Scottish Borders...
and Hawick
Hawick
Hawick is a town in the Scottish Borders of south east Scotland. It is south-west of Jedburgh and south-southeast of Selkirk. It is one of the farthest towns from the sea in Scotland, in the heart of Teviotdale, and the biggest town in the former county of Roxburghshire. Hawick's architecture is...
.
The Galashiels co-operative was formed by a mill workers' association that was already operating along similar lines.
The Hawick and Galashiels co-operatives were formed in 1839, five years before the Rochdale Pioneers
Rochdale Pioneers
The Rochdale Society of Equitable Pioneers, founded in 1844, was an early consumer co-operative, and the first to pay a patronage dividend, forming the basis for the modern co-operative movement....
shop opened in England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
.
Therefore Lothian Co-op was, at the time of merger, probably the oldest continuously trading consumer co-operative in Scotland.
Scottish Borders
The Scottish Borders is one of 32 local government council areas of Scotland. It is bordered by Dumfries and Galloway in the west, South Lanarkshire and West Lothian in the north west, City of Edinburgh, East Lothian, Midlothian to the north; and the non-metropolitan counties of Northumberland...
and Dumfries and Galloway
Dumfries and Galloway
Dumfries and Galloway is one of 32 unitary council areas of Scotland. It was one of the nine administrative 'regions' of mainland Scotland created in 1975 by the Local Government etc. Act 1973...
regions. In 1992, Border Regional Co-operative Society merged with East Lothian Co-operative Society (based in Tranent
Tranent
Tranent is a town in East Lothian, Scotland. It is close to the A1 road and approximately east of Edinburgh. It is one of the oldest towns in East Lothian, and built on a gentle slope, about 300 feet above sea level.Population of the town is 9,917....
), becoming Lothian and Borders Co-operative Society. In 1998, it absorbed East Angus Co-operative Society of Arbroath
Arbroath
Arbroath or Aberbrothock is a former royal burgh and the largest town in the council area of Angus in Scotland, and has a population of 22,785...
, taking its final name and structure.
Supermarket
A supermarket, a form of grocery store, is a self-service store offering a wide variety of food and household merchandise, organized into departments...
in Castle Douglas
Castle Douglas
Castle Douglas , a town in the south of Scotland in Dumfries and Galloway, lies in the eastern part of Galloway known as the Stewartry, between the towns of Dalbeattie and Gatehouse of Fleet.-History:...
, and purchases included a former SPAR
SPAR
Spar , trades from approximately 12400 stores in 34 countries worldwide and is the world's largest independent voluntary retail trading chain. Spar was founded in the Netherlands in 1932 by retailer Adriaan Van Well and now, through its affiliate organisations, operates through most European...
store in North Berwick
North Berwick
The Royal Burgh of North Berwick is a seaside town in East Lothian, Scotland. It is situated on the south shore of the Firth of Forth, approximately 25 miles east of Edinburgh. North Berwick became a fashionable holiday resort in the 19th century because of its two sandy bays, the East Bay and the...
, a filling station in Lauder
Lauder
The Royal Burgh of Lauder is a town in the Scottish Borders 27 miles south east of Edinburgh. It is also a royal burgh in the county of Berwickshire. It lies on the edge of the Lammermuir Hills, on the Southern Upland Way.-Medieval history:...
, and, notably, nine convenience store
Convenience store
A convenience store, corner store, corner shop, commonly called a bodega in Spanish-speaking areas of the United States, is a small store or shop in a built up area that stocks a range of everyday items such as groceries, toiletries, alcoholic and soft drinks, and may also offer money order and...
s sold by Somerfield
Somerfield
Somerfield was a chain of small to medium sized supermarkets operating in the United Kingdom. The company was taken over by the Co-operative Group on 2 March 2009 in a £1.57 billion deal, creating the UK's fifth largest food retailer. The name is currently being phased out and replaced by the...
in 2006, Lothian Co-op's first operation in Aberdeenshire
Aberdeenshire
Aberdeenshire is one of the 32 unitary council areas in Scotland and a lieutenancy area.The present day Aberdeenshire council area does not include the City of Aberdeen, now a separate council area, from which its name derives. Together, the modern council area and the city formed historic...
.
Operations
Lothian Co-op was a regional co-operative, formed by the gradual amalgamation of numerous local co-operatives.Operating 52 food stores
Grocer
A grocer is a bulk seller of food. Beginning as early as the 14th century, a grocer was a dealer in comestible dry goods such as spices, pepper, sugar, and cocoa, tea and coffee...
in southern and eastern Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
, as well as pharmacies
Pharmacy
Pharmacy is the health profession that links the health sciences with the chemical sciences and it is charged with ensuring the safe and effective use of pharmaceutical drugs...
, funeral services
Funeral director
A funeral director , also known as a mortician or undertaker, is a professional involved in the business of funeral rites. These tasks often entail the embalming and burial or cremation of the dead, as well as the planning and arrangement of the actual funeral ceremony...
, post office
Post office
A post office is a facility forming part of a postal system for the posting, receipt, sorting, handling, transmission or delivery of mail.Post offices offer mail-related services such as post office boxes, postage and packaging supplies...
s, petrol stations, and a furnishings store in Selkirk,
it was the smaller of Scotland's two regional consumer co-operatives until 2008, the larger being Scotmid
Scotmid
The Scottish Midland Co-operative Society Limited, trading as Scotmid Co-operative, is an independent retail consumers' co-operative which originated in the Scottish Midlands, particularly Edinburgh and the Lothians. It was formed in 1981 by a merger of the Dalziel Society of Motherwell with the...
, and one of four altogether.
Lothian Co-op was a member (customer owner) of The Co-operative Group
The Co-operative Group
The Co-operative Group Ltd. is a United Kingdom consumer cooperative with a diverse range of business interests. It is co-operatively run and owned by its members. It is the largest organisation of this type in the world, with over 5.5 million members, who all have a say in how the business is...
, sourcing its food through a UK-wide buying programme called the Co-operative Retail Trading Group
Co-operative Retail Trading Group
The Co-operative Retail Trading Group is the central buying group for co-operative retail societies in the United Kingdom. It was established in 1993, and says that it supplies 100% of food bought for sale by co-operatives in the UK, after being joined by the last two independent societies in 2002...
.)
From 2006, it bought home furnishings stock through the Anglia Buying Group, a national buying programme operated by Anglia Regional Co-operative Society
Anglia Regional Co-operative Society
Anglia Regional Co-operative Society Limited is the fifth largest consumer co-operative in the United Kingdom. It was formed by the merger of the Greater Peterborough Regional and Anglia Co-operative Societies in 1987. The Society has a wide-ranging and extensive portfolio with over 100 stores,...
.
Chief executive Bob Jamieson served as a director of The Co-operative Group from 2005.
Like most retail consumers' co-operatives in the UK, Lothian Co-op was incorporated as an Industrial and Provident Society
Industrial and Provident Society
An industrial and provident society is a legal entity for a trading business or voluntary organisation in the United Kingdom, the Republic of Ireland, and New Zealand...
, regulated by the Financial Services Authority
Financial Services Authority
The Financial Services Authority is a quasi-judicial body responsible for the regulation of the financial services industry in the United Kingdom. Its board is appointed by the Treasury and the organisation is structured as a company limited by guarantee and owned by the UK government. Its main...
.
Ownership and governance
Lothian Co-op was at the time of its merger owned by 65,000 consumer members, who invested in equity shares, with share balances averaging £12 each, and earning 3% interest per year. It did not pay a patronage dividendDividend
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be distributed to...
to members, though each year around £90,000 of profits was distributed to local causes as “Community Dividend Grants”, and taxable profit was re-invested in the business. A voluntary president and board of directors were elected from among the members holding at least four shares, on a one member one vote basis; the board supervised the chief executive and management. Like many UK listed companies and co-operatives, the board had an audit sub-committee responsible for internal controls, following the 1999 Turnbull Report
Turnbull Report
Internal Control: Guidance for Directors on the Combined Code also known as the "Turnbull Report" is a report drawn up with the London Stock Exchange for listed companies. The committee which wrote the report was chaired by Nigel Turnbull of The Rank Group plc...
.
External links
- History at Lothian Co-op website — including a family tree showing the foundations and mergers of all predecessor co-operatives (via Wayback MachineWayback MachineThe Wayback Machine is a digital time capsule created by the Internet Archive non-profit organization, based in San Francisco, California. It is maintained with content from Alexa Internet. The service enables users to see archived versions of web pages across time, which the Archive calls a "three...
) - Annual reports and financial statements
- Co-op unveils £5m store proposal — construction in Castle DouglasCastle DouglasCastle Douglas , a town in the south of Scotland in Dumfries and Galloway, lies in the eastern part of Galloway known as the Stewartry, between the towns of Dalbeattie and Gatehouse of Fleet.-History:...
, BBC NewsBBC NewsBBC News is the department of the British Broadcasting Corporation responsible for the gathering and broadcasting of news and current affairs. The department is the world's largest broadcast news organisation and generates about 120 hours of radio and television output each day, as well as online... - Co-op Travelcare in Scottish move (2000)
- Tranent – Coal, Co-op & Community — online exhibition of East Lothian Co-operative Society, by East Lothian Council Museums Service