ABSTRACT
From early in its history, Finnish consumer co-operative activity consisted of two competing groups with large nationwide operations: S Group (mainly rural members) and E Group (mainly industrial workers). Before World War II, they were both quite successful, accounting for nearly one-third of the country’s retail grocery business. This chapter focuses on the strategic renewal (SR) of the E Group, or rather its attempted SR. Firstly, we describe the birth of Finnish consumer co-operatives and the drivers behind their early success. Secondly, it explores the reasons behind their long decline since the early 1960s. The chapter concentrates on both co-operative groups’ SR in the 1980s. At the beginning of the 1980s, many E Group co-operative store managers, impatient with spiralling losses and the slow pace of SR, rose in rebellion. The impetus behind their reaction was compounded by the weakening of KK’s position.
