Give the meaning, inerits and demerits of consumer Cooperative stores.

Merits : A consumers co-operative store enjoys the following merits.

1. Economical buying : The store purchases goods in bulk directly from manufacturers. As a result, it is able to get the benefit of trade discounts, home delivery, low freight, credit, etc.

2. Elimination of middlemen : The establishment of consumers co-operative store results in the elimination of middlemen. Members can buy goods of daily use in goods quality and at lower prices.

3. Consumers protection : The store protects its members from hoarding, adulteration and overcharging by greedy retailers. They get a steady supply of unadulterated or better quality goods at the proper time and in required quantity. They have complete control over the store and whatever profits are made by the store ultimately go to them.

4. A consumers co-operative store is easy to form and is democratically managed. Its capital is divided into shares of small denomination so that people of modest means can become its members. Liability of members is limited.

5. Low operating costs : Due to cash sales, there is not bad debt loss. Honorary service by members reduces cost of wages and salaries. No advertising expenditure is required.

6. State patronage : Consumers cooperative stores are exempt from the payment of tax and get special concessions from the government.

7. Social benefits : The store promotes the spirit of mutual help and helps in holding the price line. It provides education in family budgeting, democracy, and encourages thrift or savings. Members who provide honorary service to the store get training in management. It helps in checking monopoly and profiteering.

Demerits : Consumers cooperative stores have not been fully successful due to the following limitations :

1. Uneconomic size : Most of the stores are too small to operate economically. They are weak and their membership is limited.

2. Shortage of funds : The stores lack sufficient capital due to few and poor members. There is little scope for expansion and growth. There is lack of initiative among members to form and run consumers co-operative stores.