Welcome to the CSA Website!

This website is designed for you to join Co-operative Supermarkets Australia in a fast and easy way.

Q&A



What is the vision for the Co-op?

To create a team of independent retailers recognised as the best supermarket network in the country by 2025.

What is the purpose of the Co-op?

The Co-op has 4 purposes:

  1. To provide a better assortment of products
  2. To lower the cost of goods of directs and promote more direct lines
  3. To lower the cost of doing business
  4. To share best practice to make the operation of our supermarkets more efficient

What was the stimulus behind creating the Co-op?

Following a trip by some leading retailers to Europe to see REWE and Leclerc, there was a new belief that grocery independent co-ops can beat the chains. The trip cemented the view that independents needed to control their own destiny.

Why not partner with Metcash in the Co-op?

The retailers explored a different partnership with Metcash in 2019 but were unable to reach agreement.

What are the capital items the Co-op needs to be financed?

The Co-op may invest in IT solutions, brands processes, technologies and a distribution system

What gives you confidence that a grocery independent Co-op can win?

The Co-op will act with speed, harnessing and best practice sharing, creating a larger membership and attracting world class management.

How do I know that the Board will make decisions in my best interest?

The Co-op does not answer to anyone but members nor is it motivated to do anything but make retailers more sustainably profitable. The Co-op does not distribute money to anyone but members. Members decide how to pay management.

What does Metcash think of this Co-op?

Metcash have agreed to not disadvantage or discriminate against any Co-op member.

Is this Co-op good for Metcash?

The last 3 Australian IGA ‘stores of the year’ have all been stores with large directs business. By attracting customers with these direct lines, customers buy warehouse lines when in the shop. So this initiative is good for Metcash.

What are the benefits of the Co-op vs automated Charge Thru?

All profits go to Co-op members.

Why does it cost $5K for the bond to join in NSW, ACT & VIC and $5.5K in QLD & TAS?

NSW, ACT & VIC IGA retailers funded the development of the Co-op between July and December 2019.

QLD & TAS did not contribute to the set-up of CSA between July and December.

When can I expect to get a return on my bond?

The Co-op would be disappointed if there wasn’t a return in the first 12 months.

Will the Co-op levy any further bond to start the Co-op?

The intention is for the Co-op to be self-funding, however should the Co-op start more slowly than expected or if the opportunities are so great to accelerate the business, the Co-op may issue an additional bond but the intention is for the Co-op to be immediately self-funding.

What happens if I sell my store?

The Co-op membership and bond does not go with the sale.

Why are small stores paying the same as large stores?

The percentage gain for the small stores should be considerably higher than for large stores.

Can I add stores?

Yes via a similar application process.

What are the conditions under which I’d lose my membership?

  • Not paying the Co-op dues
  • Not purchasing in a two month period
  • Not following the Co-op rules for execution
  • Undermining the Co-op

Do I have to execute the deals created by the Co-op?

Yes. Otherwise the Co-op has no reason for existence. It is our ambition that every deal is better for every retailer. There will always be the odd exception but we ask retailers to put the team first!

How do I influence the deals?

Come up with suppliers we should talk to and offer to be part of the deal team on certain products.

What’s in the Co-op for current direct suppliers?

  • A wider coverage for their products
  • A promotional program
  • Ease of doing business via the Co-op portal and more cost effectively deliver goods

Do we pay direct to suppliers or via the Co-op?

To begin with retailers will pay suppliers directly

How does the Co-op intend to fund its operations?

The Co-op will take a small per cent service fee on each deal it creates for its members. The per cent will be determined by the quality of the deal and authorised by the Board.

All fees stay with the Co-op network . The service fee will be circa 2% and will be transparent to all members.

When do I have to pay my bond?

The cut-off date is March 31 2020 however we ask the leading retailers to pay before the end of November 2019 in order for the Co-op to plan with clarity for 2020.

How much will I pay if I join after March 31 2020?

We cannot be sure what the value of membership will be post this date. If the Co-op performs well, the price per store will be circa $10K post March 31 2019.

Is the Co-op just for IGA retailers?

No. It will be open to all independent grocery supermarket retailers, subject to board approval.

Will there be a clash site policy as this issue has created a division amongst retailers?

It is the intention that the Co-op will have a clash site policy agreed in 2020.

Who has already paid up?

The Co-op Board has paid over $600K.

What can I do to help the Co-op?

  • Actively participate in sharing best practice
  • Promote the Co-op to other retailers
  • Identify direct suppliers

What is Collective Work?

Work by members for the good of the Co-op. This can be sharing best practice, working on sub committees or on deal teams.

Will I be disadvantaged as a regional retailer?

We believe the greatest opportunity will be regional retailers by increasing assortment and lowering delivery costs.

How many people does the Co-op intend to employ?

In Year 1 we intend to employ up to 5 staff.

Where will the offices be located?

In Melbourne, Sydney and Brisbane.

How will we share best practice?

State based best practice sessions will be organised a couple of times a year.

Is the Co-op just about purchasing products?

No, we will also work actively in reducing the CODB. Already we are a long way down the path of doing a significant packaging deal, which will save retailers real money.

Are there other CODB items on the horizon?

Yes. Cleaning items, floor cleaning, waste removal and potentially electricity are some items on the agenda.

How committed are the Board members?

There are monthly Board meetings and monthly phone links. The Board is working at real pace, as much has to be achieved. Board members have been taking time out of their own businesses over the past 2 years to get the Co-op up and running. Attendance at meetings is near-on a must, with rules governing non-attendance.

How do I order and get invoiced? Now and in 12 months?

You use your current systems.

The Co-op is developing its bespoke solution over the next 6 months.

How do I get goods delivered?

The Co-op has developed a low cost delivery service to increase assortment and reduce delivery costs. Current delivery methods can also be used.

Who are the Board Directors?

The current Board will transition to the Co-op Board:

  • Mick Daly*
  • Jeff Harper
  • Fred Harrison*
  • Vasilli Karellas*
  • Terry Karkazis
  • Nick Nikitaras
  • Rob Outridge
  • Warwick White

Two additional places have been created.

When does the voting commence for new Board Directors?

After 3 years, 7 Board Directors will be up for re-election.

The 6 Founding Directors will have the right at their discretion to remain for 10 years to ensure continuity and capability.

Voting is conducted with one member/one store = one vote.