What is happening to the dividend?

Earlier this year, the CI Coop warned that no dividend or a reduced dividend might be payable, with the final proposition being announced following approval of the 2023 financial reports.

Despite the challenging trading conditions, the Board is pleased to propose a 2% dividend, which members will vote to accept or reject at the Annual Members Meeting to be held in May.

When is the dividend paid out?

If approved by our members, the dividend for the financial year ending 2023 can be collected from any of our in-store members service/post offices starting Thursday, May 23rd.

How do I withdraw my dividend?

To avoid any delays with claiming the dividend available in your account, please take with you:

• Proof of address, no longer than 3 months old
• Current photo ID (in date)

When the account is joint, we require both holders to have provided these documents as well as completed a consignment mandate (either to sign form) if you wish to withdraw funds without the other holder being present.

What will happen to the money in my Share A or Share B account?

There has been some concern expressed about the security of member funds. Since our original announcement in February. Our members can still deposit funds in their share accounts and earn interest on the balance.

It is essential that our members understand the funds they hold in their A and B share accounts are unaffected by any decisions relating to the 2023/4 Divi and any balances will continue to earn interest. Members can easily check their balance at any time using the member portal.

What will happen to my unclaimed dividend from previous years?

Previous years' dividend has already been paid to members in their share account and can be seen under 'Current Balance' in the member portal. The decision around whether a dividend will be paid in May 2024 relates solely to the financial year ending starting 14 January 2024.

Estimated dividend is calculated throughout the financial year however may only be paid when CI Coop achieves net profits from all its activities. The Board will consider the financial results, recommend the payment of a dividend and the members then vote on the recommendation proposed. Our Member rules at Chapter 11, section 16 sets out how profits of CI Coop may be applied.

Where can I view my available balance?

In your Member Portal, your 'Current Balance' is available for you to withdraw. The 'Estimated Dividend Last Year' is subject to approval by The Board and members at the AMM in May.

What if I don’t want to accept the proposed dividend?

You will be asked to vote for the proposal at the AMM in May, to accept it or reject it. But rejecting it doesn’t mean a better offer will be made. The Board has to decide what the business can afford to pay, and the proposal will be the best they can offer in the financial and economic circumstances.

Who has the final say on the dividend?

Our Members own the CI Coop and will vote to accept the proposed dividend at the AMM. The Board makes the ultimate decision about what is a sustainable level of dividend to propose based on commercial considerations.

Without the dividend, what’s the point of being a member?

There is every point. Membership is so much more than the dividend. Being a member keeps CI Coop in local ownership. There are more ways we thank our members for their loyalty. We do this through more and better price promotions, giving back real value and money in the pocket of our members every day. CI Coop is also a major supporter of local charities and community causes and being a member means you are part of that philanthropy – you are indirectly giving back to your community.

Will the CI Coop be paying bonuses?

All bonuses have been cancelled; this decision affects everyone in the business. Given the economic uncertainties, the decision was made to prioritise the financial stability and sustainability of CI Coop to safeguard jobs and maintain ongoing operations.

Why have you been spending on branding and stores?

We have invested in modernising our stores, including pharmacy, installing new technology and consolidating all our stores under one brand. Above all we have been investing consistently in price. The number one worry for our customers at the moment is the cost of living and making ends meet. We are driving down the prices in our stores to help families who need every penny saved.

Why are you spending so much money on the JEP and GEP?

Our arrangement the Guernsey and Jersey press is structured on an annualised basis rather than a per-advertisement basis, allowing us to utilise multiple pages at a much more favourable rate. Our assessment of return on investment considers the space we occupy relative to advertisement costs and the effectiveness of the advertisement itself. Research indicates that the Guernsey Press and Jersey Evening Post remain primary channels through which our members learn about offers at their Co-op.

It's important to note that advertising costs represent a relatively small portion of our overall expenses, especially in the context of broader inflationary pressures impacting the business. However, we remain vigilant in managing all costs tightly to avoid unnecessary expenditures.

Why are you doing this?

The members’ dividend is a reward scheme that is directly dependent on our financial performance, and that has been affected by the extremely challenging market conditions of the past few years. National and global events have significantly impacted our trading and operational capability. Rising inflation, Brexit, the pandemic, conflict in Ukraine and the Middle East, and the consequent impact on supply chains and operating costs have led to a reduction in profits for the business.

Given the economic uncertainties, the decision has been made to prioritise the financial stability and sustainability of your CI Coop to safeguard jobs, maintain ongoing operations and support our growth strategy.

Will the dividend go back up?

We are looking at several options for the future. As well as investing in our product and prices, we will continue to make a positive impact through innovation, using technology to make our business more efficient and sustainable, which is good for you, good for our islands and good for our communities. Our priority is to return to better financial performance, which will enable us to reward our loyal customers appropriately.

Who can I speak to about this?

We have a dedicated Membership Team who will be happy to answer any additional questions or concerns you might have. Please get in touch with them by phone on 01534 879822 or 01481 231155 and ask to speak to our customer relations team or by email hello@channelislands.coop.

Withdrawal of dividend FAQS

Where can I collect my dividend?

Any of our instore members service post office counters.

Locations and opening times can be found here:

Post Office Services Guernsey | Channel Islands Coop

Post Office Services Jersey | Channel Islands Coop

What will I need to collect my divided?

Proof of identity, any one of the following:

• Current valid passport
• Current valid driving licence (if it contains your photo)
• Current national identity card
• Birth certificate (if supported by other evidence of identity)
• Current identity card issued by the armed forces.

Proof of address, any one of the following dated within in the past 3 months and which is either an original, or a certified copy of an original:

• Utility bill
• Letter from the States of Guernsey or Government of Jersey
• Current, valid driving licence (Guernsey only)
• Bank letter or statement (credit or store card statements cannot be accepted)

Where a utility bill is received by email, please speak with the colleagues at the counter on how we use them to update your account.

If an account is jointly held then we need to hold these documents for BOTH holder as well as a signed consignment mandate authorising that one or the other member can withdraw.

How is the dividend paid?

Dividend can be paid by cash (withdrawals of up to £500 per calendar month), cheque payable to the holder/s or BACS transfer to a bank account held in the name of the member/s, and held with a bank in the Channel Islands.

What if I do not have any of the listed documents?

If you are unable to provide any of the listed documents, please contact our membership team and they can assist with alternatives.

• Via email hello@channelislands.coop
• Phone (01481) 231155 or (01534) 879822
• Or post: The Channel Islands Coop, Member Relations Team, Co-operative House, 57 Don Street, St. Helier, Jersey, JE2 4TR

Can I pick up dividend for a friend/family member?

We do not issue dividend to third parties, even family member. If you are unable to come and see us at one of our members service post office counters, please contact membership team to discuss how we can get your dividend to you.