By Susan Dickson, Staff Writer
After reporting a $1.2 million loss last year, Weaver Street Market announced a profit of $300,000 for the fiscal year that ended in June, and could provide dividends to members by the end of next year, market officials announced last week.
The cooperative grocery store, which has about 15,000 members and 250 employees, has three stores, in Carrboro, Hillsborough and Southern Village. The store reported huge losses last year, which board members attributed to the recession, new competition and the opening of new facilities.
After the losses in the previous fiscal year, the board decided to change the way owners received benefits.
“We switched from a discount at the cash register to a patronage dividend, which basically means that the returns to members come at the end of the year,†market founder and general manager Ruffin Slater said. “Since last year we didn’t pay out those discounts, we kept that money and put it back into the co-op.â€
Instead of offering a regular discount, the market provided weekly specials only available to member-owners.
The response from members has been very positive, Slater said, adding, “I think that the most common response was understanding the rationale.â€
Although the co-op did show a profit this year, the board decided not to offer dividends to its members because of the deep losses of the previous year, but indicated that members could receive dividends after the end of next year.
According to the market’s board of directors report, the co-op saved about $750,000 by changing the discount model. Weaver Street also found savings by reducing the cost of goods, freezing new hires for certain positions and trimming administrative expenses.
“When people left, we were careful analyzing if we needed to replace that job,†Slater said.
The store also ramped up its sales by offering more local, organic products and extending its operating hours. For the fourth quarter of the fiscal year, sales were up 4 percent over last year, according to the board report.
But some employees have expressed concern at how the company realized the savings, citing larger workloads for less pay. The co-op put a freeze on raises the past fiscal year, which the board recently lifted, while employees filled in the gaps for empty positions. Some employees also worked earlier and later hours to staff the store during its extended hours.
“I think that the employees have really been key to the turnaround, because it’s been a situation where when we’ve had positions that we didn’t replace, we had to figure out ways to get the work done,†Slater said. “We’re lucky to have such a dedicated staff…. They really, really stepped up and have been really stellar.â€
Slater added that the community’s support also has made a difference in the co-op’s financial situation.
“I think that just shows the power of the co-op model, where the workers and the shoppers have the best interest of the co-op in mind,†he said.