Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/62026
RET AILING TODA Y MEC boasted some 330,000 members, and its 40th anniversary last year saw membership upwards of 3.6 million. "As a cooperative, the model was built to break even, not to be a profit- able enterprise," said Faryon. "We structure our budgets so we have a small surplus, about 3 percent, to cover un- foreseen shortfalls. The revenue that comes in pays expenses, inventory, carrying costs, operations, et cetera. If there is a surplus, we can issue what is called a share redemption to specific members. In other words, a percent- age of our membership gets a check; a decision to give a share redemption is made on a year-to-year basis. If you have been a member long enough and spend enough, you will get a disbursement eventually. We try to keep each mem- ber's share value down so that no one accumulates too much share value. We buy down high-valued shares and send a check to that particular member." Despite its egalitarianism, MEC be- DEVELOP with america's most recognized Brands Visit us at our booth S472P Dunkin' Donuts Ranked #1 in Coffee and Baked Goods category Source: 2011 Entrepreneur Magazine Baskin-Robbins Ranked #1 Ice Cream & Frozen Treats Franchise Source: 2010 Entrepreneur Magazine Submit sites to development_sites@dunkinbrands.com ©2012 DD IP Holder LLC. All rights reserved. ©2012 BR IP Holder LLC. All rights reserved. came a retailing success rather quickly, reaching $1 million in sales in 1977. After 20 years in business, sales hit $36.5 million. Total sales last year were $275 million. One of the reasons for the growth is the success of its house brand, which came about because of necessity. "We were just trying to make as much money as we needed for our expenses, so the prices we charged were lower than the manufacturers' suggested price," Faryon said. "After we started do- ing significant volume, we were cut off from a lot of different lines. It caused us to manufacture our own label." MEC's own label accounts for 45 per- cent of sales. "Our label is what people come to the store for; it's one of the many things that makes us different," said Faryon. "It is not an opening price- point label. Our label is great value for the money, and the technical items are equal to or better than the best products on the market." The stores have measured from about 14,000 to nearly 50,000 square feet, but now the co-op is trying out a smaller concept. Its newest store, in London, Ontario, measures just 10,000 square feet. "In the past, we couldn't run a store under $6 million in sales. Our new model allows us to get into smaller shopping [spaces] in some of Canada's smaller cities," Faryon said. The co-op is beginning to open stores in each major Canadian city, but has no plans for the U.S. anytime soon. "We can take this concept to the States," Faryon said, "but we have no plans to do so because we feel there are still a lot of opportunities in Canada." SCT 120 SCT / MAY 2012