Big Four should follow our lead, says Co-op’s Murrells
THE chief executive of the Co-operative Group has celebrated the company’s 175th anniversary by calling on rival supermarkets to do more to follow the example set by the 28 weavers who founded his business.
Steve Murrells said connecting with local communities is more important than ever and urged other companies to transform their boardrooms to truly represent the customers they serve.
He said: “The parallels with 175 years ago are very stark. They’re still there, it’s just in a contemporary setting.We’re actually just delivering what the pioneers were doing all those years ago.”
Co-op grew out of a community shop opened in Rochdale on December 21 1844 to help families in the run-up to Christmas during mass unemployment.
He added: “If the Co-op is to be a success, it has to be a reflection of the society it serves.”
The Co-op has managed to turn itself around following one of the darkest periods in its history.
It culminated in 2014 with its former bank chairman, Methodist minister Paul Flowers, being convicted of possessing cocaine, methamphetamine and ketamine. Since then Mr Murrells, who joined as Co-op food boss in 2012 and has previously worked for Tesco, said only by moving back to a more cooperative model, instead of trying to copy a PLC – big salaries and acquisition sprees – has led to it changing its ways.
He said: “We’re not a PLC and that was one of the reasons why we ended up where we were in the last 25 years. We thought we were a PLC but we weren’t and we lost our direction.”
He claimed a far higher portion of Co-op’s profit is reinvested into the community compared with competitors. He explained: “I think our model of working is something that’s really resonating. The country needs more Co-ops, not fewer.
“Whatever we are doing must be resonating better than whatever they (Tesco, Sainsbury’s, Asda and Morrisons) are doing, because if you look at all of their performances over the last four years, they’ve all gone backwards and Co-op’s gone forward.”
In September Co-op revealed a 3 per cent increase in sales during the first half of the financial year – a 22nd consecutive quarter of growing sales.
The company has overhauled its corporate governance in an attempt to avoid the problems of the past.
Every non-executive in the boardroom is matched with a director from within the business to “be the voice” of the moment in discussions.