Historic numbers for Neepawa-Gladstone Co-op Annual General Meeting reviews 2022 and looks ahead to 2023

By Eoin Devereux Neepawa Banner & Press

It was a record setting year for sales at the Neepawa-Gladstone Co-op. That positive news is somewhat tempered, however, by the fact it was also a record setting year for the cost of goods sold by the local cooperative.

The business held its annual general meeting on Wednesday, Apr. 12 at the ArtsForward building in Neepawa. This get-together featured reports from Jason Sumner, on behalf of the board of directors, Co-op general manager Brian Hedley, as well as an overview of the current financial outlook.

A look at the numbers

For 2022, the total sales increased by just over $14.7 million, to $110,205,990. The cost of purchasing those goods to sell, however, also rose year-over-year, by nearly $14.8 million. That means that while it was still a profitable year for the Coop, the margins remained stagnant.

In 2022, there were 700 new memberships purchased, which was up from 451 the previous year. That brings the total membership to just under 9,000. Patronage refunds were allocated to the membership in the amount of $2.4 million.

Global issues, local impact

In his formal presentation, general manager Brian Hedley noted that the local Co-op was impacted heavily in 2022 by several global events.

“Effects from both the pandemic and the war in Ukraine lead to several ongoing challenges for our Co-op. Supply chain issues impacted almost every area of our business and inflation increased prices to the point of challenging consumer spending,” stated Hedley in his AGM report. “The war became a major disruptive force in commodity markets such as wheat, food, energy and global markets. Ukraine and Russia have always been large exporters of grain, corn and other products. Grain prices reached record levels due to fears of shortages and overly strong demand which in turn benefited our local farmers.”

Hedley also cited higher energy costs and inflationary pressures as notable factors in overall operational numbers.

A divisional breakdown

Food Division: Last year, the Gladstone Food Store sales increased compared to 2021 and were ahead of budget. This was the exception as opposed to the rule around the trading area as Co-op customers were able to start moving around and shopping in some of the larger areas. Margins were down slightly as more customers were shopping for deals due to rising costs and trying to make their dollars go farther.

As for the Neepawa Food Store, its grocery sales dropped last year, though that change was expected. In 2021, there was a decrease in travel to larger centres due to COVID-19. With 2022 seeing a return to normal travel for consumers, the local sale numbers went back to expectation. The grocery department has