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In the worst of the depression period, the
society's annual trade fell as low as £1,000,000.
To meet this situation the society opened new
branch stores, engaged in a vigorous educational
campaign, and put management problems in
charge of committees of branch managers.
After the low point of cooperative sales, trade
was rapidly regained. The society has opened
about 30 new stores in the last 8 years, largely to
meet the shift in population to the outskirts.
A private chain of 45 grocery stores with a
weekly business of £10,000 was bought by the
society, under an agreement to take over the
employees, who numbered about 300. In the
opinion of the present manager of the society,
the deal was unfortunate and has handicapped
the society by its additional expenses.
The society's trade problems have not been
completely solved. Out of its 120,000 member-
ship, there are 30,000 who spend little or nothing
in its stores. The potential trade of the society
is calculated at £5,000,000 a year, but it reaches
only three-fifths of that amount. There are
many losses in new membership among those
whose enthusiasm wanes rapidly. In 1935, of
15,000 new members, only 5,000 remained
members for a full year. The management's
experience is that when a cooperative member
has remained in the society for a year his
affiliation is usually permanent.
Guild and other educational activities, includ-
ing circularizing of the whole membership and
visits to the homes of new members, are being
carried on in the effort to solve the membership-
trade problem. The society has 23 women's
guilds, with a total membership of 2,500.
At the time of consolidation of the two former
societies into the present Liverpool society,
their combined membership was over 33,000,
their combined sales £627,000, and their com-
bined capital £207,000. In 1933 the member-
ship of the consolidated Liverpool society was
over 116,000; its annual sales £2,500,000; and
its members' share capital, loans, and savings
bank deposits over £1,700,000. At present the
total capital is said to be about £2,000,000, of
which half is invested in the Cooperative Whole-
sale Society. An additional £500,000 has been
written off as depreciation.
The Liverpool society keeps a large portion
of its capital liquid in order to meet unexpected
calls for withdrawals of savings or share capital.
One specific instance of the wisdom of this
from 1937
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