Consumer Cooperative Store:
It is a retail store formed by the consumers on the basis of principles of co-operation. These stores are owned and managed by consumers. They deal all types of consumer goods.
Features of Consumers Co-operative
1. It is a voluntary association of consumers.
2. The liability of members is limited.
3. Consumers can purchase quality goods at the lowest cost from these stores.
4. Democratic control is exercised.
5. It eliminates middlemen.
Advantages
1. Consumers can purchase quality goods at the lowest cost from consumers’ co-operative store.
2. There are no bad debts as goods are sold on a cash basis.
3. Economies of large scale purchasing can be enjoyed.
4. Less advertisement expenses are required.
5. It restricts the monopoly and wasteful competition.
Disadvantages
1. A consumer co-operative store can collect low capital. So they cannot start a business on a large scale.
2. The management of a consumer cooperative store is inefficient.
3. It lacks proper warehousing facilities.
4. It will not attract consumers because of no credit facilities.
