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Union Coop

From Wikipedia - Reading time: 6 min
Union Coop
FormerlyUnion Cooperative Society
Company typeConsumers' cooperative
DFM: UNIONCOOP
IndustryRetail
FoundedMay 24, 1982; 42 years ago (1982-05-24) in Dubai, United Arab Emirates
Headquarters
Dubai
,
United Arab Emirates
Number of locations
27 branches (2023)
Area served
United Arab Emirates
Key people
Majid Hamad Rahma Al Shamsi (Chairman)
Mohamed Al Hashemi (CEO)
ProductsOrganic food, Fruits, Vegetables, Electronics, Personal care, Home appliance
Websitewww.unioncoop.ae

Union Coop, formerly known as Union Cooperative Society, is an Emirati сonsumers' co-operative situated in the Emirate of Dubai, UAE. It was established in the year 1982 by the Ministry of Labour and Social Affairs at that time. It is one of the largest consumer cooperative in the United Arab Emirates.[1] It operates 27 hypermarket branches and seven shopping malls, all situated in the emirate of Dubai.[2][3][4]

Union Coop's services include establishing hypermarkets, malls, commercial centers, and managing cooperatives within the UAE.[5][6] It is listed on the Dubai Financial Market.[7][8] As of December 2021, Union Coop had over 36,000 member cooperatives, compared to the 315 members it had in 1984.[7]

History

[edit]

Union Coop was established on May 24, 1982, by the Ministry of Labour and Social Affairs of the UAE to enhance the social and economic conditions of its members and serve the local communities in its operational areas.[2]

In March 2021, Union Coop launched its first in-house organic farm, 'Union Farm', providing pesticide-free vegetables at Al Warqa City Mall, with plans for expansion across its branches in the UAE.[9]

In July 2022, it became the first cooperative society in the UAE to be listed on the Dubai Financial Market.[7]

In preparation for the 2020 Ramadan period during the ongoing COVID-19 pandemic, the company signed contracts exceeding AED 400 million (US$108 million) with suppliers to ensure adequate food availability throughout the month.[10]

In November 2020, Union Coop continued its expansion by opening Al Warqa City Mall, its third shopping center, which also includes a hypermarket with over 48,000 products.[11] In March 2023, Union Coop launched a community residential mall in Motor City, Dubai, costing AED 100 million ($27.23 million) and featuring its 26th hypermarket, 28 retail stores, and 44 residential apartments. Simultaneously, the company opened a shopping center in Dubai's Al Nahda-2 area, with the 25th hypermarket and 41 commercial stores, constructed at a cost of AED 50 million ($14 million).[12]

Operations

[edit]

Union Coop operates a loyalty program, Tamayaz, which has enrolled over 740,000 customers.[13]

Subsidiary

[edit]

Umm Al Quwain Coop Society

[edit]

Union Coop manages an outlet outside Dubai, known as the Umm Al Quwain Coop Society, situated in the Al Salamah area of the Emirate of Umm Al Quwain. The Umm Al Quwain Coop Society aims to benefit citizens and residents by offering a variety of products and services under one roof. In January 2018, Umm Al Quwain Coop released 2.5 million stocks for public trading to enhance investment in its retail sector.[14]

Union Coop invested AED 46 million (approximately $12.5 million) in the development of the Umm Al Quwain Coop Residential and Commercial project in Al Salamah 3, Umm Al Quwain. The project includes a 3,319.6 square meter hypermarket, alongside 15 retail shops and 70 residential apartments.[15]

Financials

[edit]

In the first half of 2023, Union Coop reported a net profit of AED 153.38 million. The consolidated income statements for H1-23 indicated that income from the sale of goods amounted to AED 918.57 million.[16][17] The company reported its earnings for the half-year ending June 30, 2023, with a net income of AED 153.39 million.[18]

In the first quarter of 2022, Union Coop reported a 2.6% increase in net profits to AED 116.5 million, while the full-year 2021 net profits reached AED 413 million with a 21% profit margin. Since 1984, Union Coop has sustained operational and financial excellence, with a 20.5% compound annual growth rate in net profits and a 16.85% sales increase, as reported in 2022.[7]

In March 2023, Union Coop announced a cash dividend of 22% on share value, in addition to a 5% return on shareholder purchases.[19]

CSR

[edit]

As part of its CSR efforts, Union Coop allocated over AED 21 million to community initiatives in 2022.[19] In October 2021, Union Coop signed a MoU with the Dubai Autism Center, a nonprofit organization, to support local humanitarian and social causes.[20] In 2019, Union Coop spent Dhs 34.93 million in social services and community service.[21] Union Coop, as the strategic partner of Emirates Down Syndrome Association (ESDA), significantly contributes to the sustainability and development of services.[22]

In April 2023, Union Coop pledged AED 10 million over five years to '1 Billion Meals Endowment', supporting global food security and relief for vulnerable communities through sustainable food aid.[23]

In October 2023, Union Coop partnered with Burjeel Hospital For Advanced Surgery to provide discounted healthcare and health awareness to employees and Tamayaz loyalty program members.[24] Union Coop offered a 25% discount on essential goods in February 2023 to support relief efforts following the earthquake in Turkey and Syria.[25]

Awards and recognition

[edit]

In October 2022, Union Coop received the Dubai Chamber's Corporate Social Responsibility (CSR) Label for the tenth consecutive year, recognizing its contributions in responsible practices, community initiatives, and environmental projects.[26]

References

[edit]
  1. ^ E. Diala, Criselda (October 6, 2005). "Union Co-Op eyeing direct goods import". Khaleej Times.
  2. ^ a b "Union Coop History". Unioncoop.ae.
  3. ^ Rahman, Fareed (2022-11-10). "UAE's new co-operative law to come into effect next month, Ministry of Economy says". The National News. Archived from the original on 2022-11-10. Retrieved 2024-01-20.
  4. ^ Abbas, Waheed (2022-03-09). "Ramadan 2022 in UAE: Up to 75% discount on 30,000 items announced". Khaleej Times. Retrieved 2024-01-20.
  5. ^ Naranyanan, Archana; Fioretti, Julia (2022-08-04). "UAE Healthcare Provider Seeking to Raise $750 Million From IPO". Bloomberg News. Retrieved 2024-01-20.
  6. ^ "Dubai Municipality, Union Coop to collaborate to ensure supply of strategic food commodities in local markets". Arabian Business. 2023-12-14. Retrieved 2024-01-20.
  7. ^ a b c d "DFM welcomes the listing of Union Coop, the largest retail cooperative in the UAE". Government of Dubai Media Office. July 18, 2022.
  8. ^ Nagraj, Aarti (2022-07-01). "Union Coop to become first UAE retail co-operative to list on DFM". The National News. Retrieved 2024-01-20.
  9. ^ "Dubai retailer launches farm concept, eyes organic expansion". Arabian Business. March 19, 2021.
  10. ^ Bridge, Sam (March 19, 2020). "Dubai retailer inks $108m deal to stock up for Ramadan". Arabian Business.
  11. ^ "AED 347 Million Al Warqa City Mall opens in Dubai". Imagesretailme. November 29, 2020.
  12. ^ "Union Coop opens $27mln community residential mall in Dubai's Motor City". Zawya. March 9, 2023.
  13. ^ "Tamayaz: More than 740, 000 customers enrolled in Union Coop's loyalty program". Zawya. August 17, 2022.
  14. ^ "Umm Al Quwain Coop offers 2.5m stock for public trade". Khaleej Times. January 18, 2018.
  15. ^ Warrier, Ranju (May 19, 2020). "Details of Union Coop's Umm Al Quwain project revealed". Construction Week.
  16. ^ Mubasher (August 16, 2023). "Union Coop's net profits fall in H1-23 financial results". Zawya.
  17. ^ "Union Coop Stats". Yahoo Finance. January 18, 2024.
  18. ^ "Union Coop Reports Earnings Results for the Half Year Ended June 30, 2023". Market Screener. August 15, 2023.
  19. ^ a b "Union Coop makes 2022 net of $108m; sets 22pc cash dividend". Trade Arabia. March 23, 2023.
  20. ^ "Union Coop agrees motion to support Dubai Autism Center". Au Ti. October 30, 2021.
  21. ^ Khan, Jamil (April 3, 2020). "Union Coop announces 24 per cent cash dividend". Gulf Today.
  22. ^ "Early intervention classes in Dubai for Down syndrome children". Al Arabiya. September 22, 2018.
  23. ^ "Union Coop contributes Dh10 million for '1 Billion Meals Endowment' campaign". Gulf News. April 6, 2023.
  24. ^ "Union Coop Boosts CSR Initiatives with Burjeel Hospital Agreement". Asian Lite. October 4, 2023.
  25. ^ "Union Coop offers 25% discount on products for quake-hit Turkey and Syria". Khaleej Times. February 12, 2023.
  26. ^ "Dubai Chamber's CSR label for Union Coop for the 10th time in a row". Asianet News. October 19, 2022.
Licensed under CC BY-SA 3.0 | Source: https://en.wikipedia.org/wiki/Union_Coop
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