The Weyburn Co-operative Association shattered a sales record set in 2006 as they reached $43.4 million in 2007, an increase of $5.9 million, as announced to members by Henry Jones, president and chair of the board of directors, at the annual general meeting on Thursday.

This means a total of $2.2 million will be allocated to patronage, with approximately $1.2 million paid in cash with equity cheques handed out in June. As controller Tom Morgan stated during his financial report, "Sales are up, earnings are up, allocations are up and it has been another successful year at our co-operative."

"The success is due to three reasons. One is the support we receive from our members in their purchasing and their providing input into future directions and needs for the co-operative," said General Manager Don Kraft. "The second is our dedicated staff who provide exceptional service in sometimes trying conditions and times. The third is our board of directors, for their guidance, dedication and their support."

All divisions experienced growth in association sales, led by the Petroleum division, which increased by $4.9 million or 35.9 per cent. Sales increased 10.4 per cent in the General Merchandise Division and the Food Division sales were up 2.4 per cent.

Gross margins, the difference between what the Co-operative pays to suppliers for merchandise and the price charged to customers, is down from 16.3 per cent last year to 16 per cent this year. The major contributing factor was the price of fuel, with fuel at 48.6 per cent of sales last year and 55.1 per cent of sales this year.

Operating expenses for the association increased by just over $533,000 for the year. As a percentage of sales, expenses were down 1.1 per cent to last year. High amortization on new and renovated facilities are still a factor. Included in these facilities is the construction at the Crossroads location.

In 2007, construction of the new cardlock including canopy was completed at an estimated cost of $610,000 and is now operational. Currently a new convenience store and canopy is under construction at an estimated cost of $1,358,000 and is scheduled to be operational by mid-June.

The new C-store will include a truckers lounge and four pumps, with eight lane services that provide pay-at-the-pump. "The convenience store will provide for additional products to be available catering to the traveling public," said Kraft. "We also are providing additional services for the trucking industry with a truckers lounge, providing showers, laundry services, temporary office space and an area for relaxation and rest."

The Co-op also sold their Hill Avenue property and are currently leasing back a portion of it. Last year they had renovated the property to provide to members a functional drive-through warehouse. With the sale of the location, the sales area was moved into a smaller space for retail sales area, at the entrance to the drive-through. Work was also completed in the lower Metro Centre, developing a liquidation store. There was re-merchandising and display changes at the mall hardware location, and upgrades of new tills for the checkouts at the grocery store.

During question and answer period, members wanted to know if and when the Co-op will be upgrading the food store, including the cafeteria. Kraft replied, "We are currently doing a feasibility study on completing a decor upgrade to the food store and will start that in January 2009. Our priority right now is completing work at Crossroads."

As it is for many local businesses, the Weyburn Co-op faced some staffing challenges in the last year. "We are pleased to be able to report that our turnover rate has not increased at the rate that most other retail co-operatives and businesses in our community are experiencing," said Kraft. "Our problem lies with our new hires and our entry-level employees. Due to the type of job market there is, we have had to do some innovative management of our personnel."

During the member relations report, the Weyburn Co-op announced a new "Green Benefit" policy for consumers, to encourage members to use recyclable bags as opposed to plastic bags. Customers will receive a rebate of two cents/bag every time they use the recyclable bag, with this rebate coming right off their grocery bill. "As plastic bags cost your co-operative about two cents each, this will help reduce supply costs and help the environment," explained director Linda Banerjee, of the Member Relations Committee.

The last business on the agenda was approval by members for a new Joint Membership Bylaw, where two or more persons can apply for a joint membership in the Weyburn Co-op. Benefits of Joint Membership is that each party is eligible to vote on issues at the annual meeting and each party is eligible for rebates at the end of the year. Cost of joint membership is $10 per person and residents requiring more information should contact the Weyburn Co-op office.