Patronage Dividends
When the Co-op Succeeds, the Community Benefits!
This fiscal year, our Co-op experienced $23.8M in sales, generating a modest profit of $103,000, or 0.43%! When the Co-op turns a profit, a portion is given back to owners based on how much they shopped. This approach rewards those who use the Co-op the most while ensuring funds are reinvested to improve the Co-op for everyone.
80% of the profits were retained to reinvest in the business, while the remaining 20%, or $9,500, was distributed among the owners who spent over $2,300.
“Supporting your Co-op means supporting a business model that keeps resources circulating within the local economy and emphasizes transparency and community well-being.”
Impact of Patronage Dividends
While the dividends are meaningful, it’s the Co-op’s reinvestment of 80% of the profits that truly underscores its commitment to the community. This helps us improve services, expand offerings, and strengthen local food chains, ensuring that the co-op can continue to serve its owners and the broader community in the future.
Every time you shop at the Co-op, you’re not only buying groceries, you’re investing in a business that’s dedicated to building a stronger, more sustainable community for everyone involved. This is the power of cooperative ownership at its finest.
We’ve come a long way in the decades since our founding in 1971 and that’s all thanks to community owners who have supported us in this journey!
Pictured above is a Member Worker at Lexington and Ashland. We continue to work with Great Arrow Graphics, a Buffalo greeting card business, to this day!
Choosing the Co-op means a Strong Local Economy 🍏
Shopping at the Lexington Co-op Markets is fundamentally different from shopping at a traditional grocery store because our profits are either reinvested into the business or shared with the people who shop here, the owners.
“Owners also have a voice in their Co-op by voting for board members and changes to the bylaws. The combination of these financial rewards and governance rights creates a closer, more invested relationship between the co-op and its members, setting us apart from conventional stores.”
The benefits don’t stop at dividends. Owners enjoy exclusive perks like Owner-only specials, and a deeper connection to a business that prioritizes building a strong local food system.
As a Co-op owner or shopper, every dollar you spend helps keep resources within the community. By reinvesting most of our profits into the business, we’re able to support local suppliers, improve services, and strengthen our community ties!
Pictured above: Mercedes Wilson of Sadie’s Relish.
Frequently Asked Questions:
Why was my dividend this amount?
Each year is different, it is based on how much profit the Co-op made and how much you shopped at the Co-op. The more you shop, the more you are eligible to earn in a dividend.
Will the Co-op distribute a dividend every year?
Only in years when the Co-op generates sufficient profits.
How is the Co-op doing? Are we making a profit?
Our goal was to make a slim profit and share some of the slim profit with our owners. We were successful at that and had a modest profit of 0.43%. We continue to enjoy strong support from the community. Our sales are steady, and we had our 3nd profitable year since we opened our Hertel store.
Are taxes taken out of my dividend?
No, but if you use your owner share for business you should consult an accountant.
What happens if I don’t use my dividend?
Your dividend will be automatically donated to the Lexington Co-op Community Fund if you do not redeem it by 12/31/2024.
How many owners got a dividend?
About 2,300 owners received a dividend.
Did I get a dividend? Did someone else use my dividend?
If you share your account with someone it is possible that they used your dividend. (Cashiers can always call the Front-End Supervisor over to help search previous transactions to verify if a dividend was used).
How Do Patronage Dividends Work?
Patronage dividends represent a portion of the Co-op’s earnings returned to the owners based on how much they’ve spent throughout the year. For instance, this year we distributed dividends to 2,300 owners, with an average dividend of about $4. However, to receive a dividend, an owner had to spend at least $2,300 at the co-op during the year. Dividends over $2 were distributed, but anything under $2 was retained by the Co-op.
This structure encourages participation and rewards loyal shopping at the Co-op. Even though the average dividend amount may seem small, the process ensures that the profits directly benefit the owners who contribute the most to the co-op’s success.