The Review Column: Co-op in Trouble (1967)

The Review Column from the July 1967 issue of the Socialist Standard

Co-op in Trouble

The latest published results of the Co-operative Wholesale Society confirmed something which everyone knew. The Co-op is well down the slippery slope.

Net trading profits are down from over £3 million in 1965 to £792,000 last year; retail societies’ share of the national retail trade has fallen from 11.9 per cent (1957) to 8.8 per cent (1967). The Sunday Citizen has died, the final collapse coming when the CWS management cut its advertising and public relations spending, which the Citizen relied on, by £800,000.

The Co-op has been left behind in the great post war retail boom. While firms like Sainsbury’s and Marks and Spencer’s were making rich with their skilfully designed stores, their thoughtful employment policy and their keen prices, the Co-op has seemed to exist with a death wish. Some of its cakes and biscuits, for example, taste as if they came out of a cement mixer and some of its fashions look as if they were designed by a man from the government surplus store.

The CWS is now facing the fact that it can either die, or at best exist feebly—or it can compete. It has chosen the latter. Philip Thomas has been brought in from profit conscious Associated British Foods as chief executive. He has appointed several new top managers, among them another man from ABF and one from Boots. And the axes are starting to swing.

At this year’s CWS Annual Meeting. Thomas promised “hurtful and unpopular decisions . . . substantial economies”. Already some staff privileges have been withdrawn and mergers and closures of factories, with consequent sackings, are in the offing.

In all this, only a passing reference has been made to the fact that the Co-op was once supposed to be different— an example of Socialism, no less, within capitalism. The ghost of this ludicrous idea still walks, and Thomas is out to exorcise it. “Commercial realism . . . the inevitability of economic pressure”: these are the words he is incanting as he tries to save Ihe Co-op’s commnercial soul.

Middle East

To anyone who does not understand the word, it is Socialism which has been at war in the Middle East. President Nasser claims to be a Socialist, and so do many of his allies. There is even something, which they do not define, which they call Arab Socialism. Israel once said that Socialism was being built there, that the kibbutzim were a new way of life free from the commercialism of capitalist society, and that within its borders men would find new freedom and dignity.

But in the recent flare-up both countries showed—if this was necessary—their true nature. Egypt intensified her arguments about the legality of Israel’s frontiers, over the conquest of the port of Eilat and over the extent of Egyptian control over the Straits of Tiran.

Disputes over territorial boundaries and strategic positions, carried on within the complexities of international law—and often in the end by armed force are a familial part of capitalism. They have nothing to do with Socialism, which will be a society without national boundaries and international economic rivalry.

Israel is now the most powerful military nation in the Middle East. Conscription there is comprehensive, with even women battle-trained, and the whole thing is backed up by the sort of hysterical nationalism which demanded the appointment of strong man Moshe Dayan as Minister of Defence.

This intensive militarism had its effect against the ill-trained Egyptian army. These are just some of the descriptions used in just one edition of the Times last month, reporting on the Israeli advance: “masterpiece of mechanized war . . . quick thrusts . . . ruthless air attack”.

Militarism and patriotic hysteria are among the most unpleasant of capitalism’s by-products. They are two of the many antisocial attitudes, so common today, which will not exist under Socialism. That they are so powerful in Israel reveals, if nothing else does, the nature of society there.