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Consumer Co-Operatives and the Transformation of Modern Food Retailing a Comparative Study of the Norwegian and British Consumer Co-Operatives, 1950-2002

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Consumer Co-Operatives and the Transformation of Modern Food Retailing a Comparative Study of the Norwegian and British Consumer Co-Operatives, 1950-2002 Consumer co-operatives and the transformation of modern food retailing A comparative study of the Norwegian and British Consumer Co-operatives, 1950-2002 Espen Ekberg Dissertation submitted for the degree Philosophiae Doctor (PhD) February 2008 Forum for Contemporary History Department of Archaeology, Conservation and History University of Oslo © Espen Ekberg, 2008 Series of dissertations submitted to the Faculty of Humanities,University of Oslo No. 364 ISSN 0806-3222 All rights reserved. No part of this publication may be reproduced or transmitted, in any form or by any means, without permission. Cover: Inger Sandved Anfinsen. Printed in Norway: AiT e-dit AS, Oslo, 2008. Produced in co-operation with Unipub AS. The thesis is produced by Unipub AS merely in connection with the thesis defence. Kindly direct all inquiries regarding the thesis to the copyright holder or the unit which grants the doctorate. Unipub AS is owned by The University Foundation for Student Life (SiO) Preface In the late autumn of 2002 I was asked to undertake a short inquiry into a failed attempt made by the National Co-operative Association (NKL) to expand into the furniture business. The failure had led to substantial losses for the NKL and the NKL Board of Representatives had asked for an independent investigation into the chain of events leading up to the failure, as well as its economic consequences. At that time I was working at the Institute for Social Research and together with a colleague I finished the report in March 2003. The report marked the start of a long and fascinating journey into the history of retailing in general and the history of consumer co-operative enterprises in particular. Just a few months after the report of the furniture failure was completed, I was asked to participate in long-term project studying the history of the Norwegian consumer co-operatives. Working on this project I was immediately fascinated by the finding that consumer co-operative enterprises had developed so unevenly in different Western European countries during the post-war period. Not least I was fascinated by the discovery that the Norwegian consumer co-operatives were among those which had developed most successfully. How had this development come about? Why had the Norwegian co-ops developed so positively in the post-war period, when so many other consumer co-operatives had declined and even collapsed totally during this period? The question immediately triggered my curiosity. But, the history of the Norwegian co-ops had to be finished and there was only limited time to explore this broader comparative issue. Then, in 2004 I was granted a Ph.D. scholarship by the Forum for Contemporary History at the University of Oslo. The scholarship gave me the opportunity to study in more depth the development of consumer co-operative organisations as alternative forms of retailing enterprises. I chose to approach the task by way of a comparative study of the Norwegian and British consumer co-operatives, focusing on these two organisations’ divergent economic developments in the post-war period. The present thesis is the result of this work. Academic research is often a lonely endeavour. The present study has, however, benefited from the support of numerous people to whom I owe a great debt. First of all I would like to thank Fredrik Engelstad and Trygve Gulbrandsen, two great Norwegian sociologists. Neither of 1 them have had any direct influence on the present work, but they have both played a crucial role in providing me with the academic skills necessary to successfully finish a Ph.D. thesis. When I was writing my Cand.polit. thesis in sociology, Fredrik was my supervisor. Later I was privileged to have him as my manager at the Institute for social research and together with two other colleagues we also co-authored a book. Fredrik has taught me a lot about doing research. Most importantly, he has taught me that the empirical facts always have to come before any advanced theory. I am also grateful to Trygve Gulbrandsen. In addition to being a great intellectual, Trygve has taught me a lot about the importance of positive feedback within academic life and of treating students and colleagues with respect and humility. Secondly, I need to thank the hiring committee at the Forum for Contemporary History for providing me (a sociologist by training), with the opportunity to become a part of one of the best and most stimulating historic research milieus in the country. Being a Ph.D. student at the Forum has given me the opportunity to meet, become acquainted with and learn from a number of highly talented historians. I am especially indebted to all participants at internal Ph.D. seminars for their comments and suggestions on chapters and earlier drafts of this thesis. Thirdly, my long term collaborator Jon Vatnaland deserves a big thank you. We first met as first year students in sociology. From then on, we were almost inseparable for years, writing our Cand.polit. thesis together and later collaborating on several research projects, including all the above mentioned studies. With his bubbling enthusiasm and endless intellectual imagination Jon is a very stimulating colleague. He has also made several important suggestions on the present study. My colleague Eivind Merok has read and reread the thesis meticulously and provided important suggestions and comments. He has also provided invaluable technical guidance as well as much needed administrative assistance in the final stages of completing the present work. Finally, I need to thank my supervisor, Professor Even Lange. First of all for believing in me and for recommending me for a Ph.D. scholarship in history; then for helping me develop and complete the thesis. Apart from the people that have contributed intellectually, I am also indebted to a series of other people who in different ways have contributed to the completion of the study. For archival work to be efficient and successful, assistance and guidance is necessary. Here I have also been privileged. The sources on which the study is based have largely been collected from two national archives, the archive of the Norwegian Co-operative Association (NKL) in Kirkegata 4, Oslo and the National Co-operative Archive in Manchester, UK. In the NKL archive, the head of administration Helene Mevik has been an invaluable source of help and support. Working in 2 the National Co-operative Archive in Manchester I have been ably assisted by the knowledgeable and always welcoming archivist Gillian Lonergan, as well as her two very helpful assistants, Janice Miller and Karyn Stuckey. I am also extremely indebted to my proof reader Natja Thorbjørnsen, who has been vital in transforming the document into readable English. I could not have finished this thesis without the immense support and patience of my wife, Monica. Monica is one of those rare people who is able to offer the combination of advanced intellectual stimuli and enjoyment of life's simple pleasures. This thesis is dedicated to her and our daughter Agnes. Blindern, February 2008 Espen Ekberg 3 4 Table of contents Preface 1 Chapter 1: Introduction 9 Consumer co-operatives – organisational characteristics and historical developments 12 Existing research 17 Analytical approach 33 Methodological approach 35 Sources 38 Structure of the thesis 47 SECTION I: STORES 51 Chapter 2: Self-service 55 The self-service technology 56 The introduction of self-service in the UK 57 Self-service in Norway 61 Divergent paths 65 Conclusions 73 Chapter 3: The supermarket 77 The supermarket 79 The supermarket and the UK co-operatives 81 The supermarket in Norway 87 Conclusions 92 Chapter 4: Superstores and hypermarkets 95 The hypermarket 97 The first hypermarkets in Norway 99 Early development of superstores and hypermarkets in the UK 102 Divergent paths in hypermarket retailing 105 Conclusions 111 Chapter 5: The coming of the multi-format retailer 115 The small store problem and the development of the convenience format in the UK co-ops 117 Towards a strategy of differentiation in the British co-operative movement 123 Developing a co-operative multi-format structure: the Norwegian development 129 Conclusions 135 SECTION II: ORGANISATIONAL STRUCTURE 141 Chapter 6: The coming of the chain store and the co-operative response 147 The structure of the food retail industry in the UK by the beginning of the 1950s 148 The structure of the food retail industry in Norway by the beginning of the 1950s 154 The structural weaknesses of Norwegian co-operative retailing 157 5 The social and moral superiority of co-operation: UK co-operators confronting the 1950s 161 Norway: Modernisation along US ideals 165 UK: reluctance to change 171 Conclusions 176 Chapter 7: Centralisation 179 Structural reforms in the UK consumer co-operative movement 181 Forward integration and the development of a hybrid federative model 187 Rationalising the Norwegian society structure: the primacy of the federative model 193 Conclusion 197 Chapter 8: Integration and standardisation 203 Attitudes towards integration among UK co-operators 205 Attempts to integrate: the report of the Joint Reorganisation Committee 209 Integration and standardisation within the Norwegian co-operative movement 213 Partial integration: UK co-ops in the 1990s 222 Conclusions 226 SECTION III: IDEOLOGY 231 Chapter 9: Co-operative democracy and consumer politics 235 The co-op and the rise of the consumer 236 The approach of the Norwegian co-ops: Towards a commercialised consumerism 240 Co-operative
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