Location as a strategic retail decision: the case of the retail cooperative

Abstract

Purpose

This paper is a case study of a cooperative whose involvement in the retail business was exemplary of a successful cooperative, bold enough to venture into the retail business. Known as the Johor Cooperative Supermarket (JCS), it was established in 1976 with the support of a firm number of cooperative members, totaling 15,000 at its peak. The purpose of this paper is to examine the success story of JCS and the eventual demise of such an outstanding cooperative.

Design/methodology/approach

Using the case study method through in‐depth interviews with the board of directors of the cooperative, information was accumulated to conceptualize the story and trace the chronological events relevant to the case.

Findings

Unlike other business entities, JCS was established on the foundation of a cooperative that seeks to attain profitable standing for the benefit of its members. Located strategically in the southern tip of Johor Bahru in Malaysia's southern state of Johor, the supermarket attracted a large number of Singaporeans who find the assortment of merchandise and the pricing of the vast array of goods offered by JCS an attractive lure to shop in this cosy and neighbourly supermarket. However, a strategic decision on its location eventually led to the closure of this once supreme supermarket.

Originality/value

The paper traced the history of the supermarket and trailed the strategies which the management took that led to its ultimate demise. This case is also a reflection of the brave move undertaken by the members of the cooperative board to venture into a big retail business that makes it susceptible to the peculiarities and erratic movement of the business environment.

Citation

Mohd Roslin, R. and Rosnan, H. (2012), "Location as a strategic retail decision: the case of the retail cooperative", International Journal of Commerce and Management, Vol. 22 No. 2, pp. 152-158. https://doi.org/10.1108/10569211211239458