YELLOWKNIFE - The Yellowknife Direct Charge Co-op increased its sales in 2007, but only slightly over the previous year, and it's partly due to an increasingly competitive market for groceries in Yellowknife, according to the store's general manager.

The Co-op made $36.2 million in sales last year, up two per cent from 2006, when the community-owned store reaped $35.5 million.

Val Masacupan has been working as a produce clerk for eight years at the Yellowknife Direct Charge Co-op, which recently had its annual general meeting. The Co-op currently has 4,535 members, many of whom have cited the store's fresh produce as a major draw, according to Mark Needham, a member of the Co-op's membership committee. - Guy Quenneville/NNSL photo

"We are in a very competitive market," said general manager Ben Walker, adding that stores like Wal-Mart and even Canadian Tire are beginning to extend their selection of foods, resulting in a wider variety of shopping choices for Yellowknifers.

The slowdown of sales is expected to continue this year, added John Monroe, treasurer.

Sales at the Co-op gas bar declined over the past year.

Co-op president Leanne Tait said the decrease was due to the Co-op's change in member's full discount policy to a periodic rebate instead of a mark-down at the pump.

But loss in sales was outweighed by the Co-op's considerable savings on fuel purchases last year. Since switching its supplier of fuel - from the Federated Cooperatives to Imperial Oil - the store has reduced costs by $350,000.

"So while fuel sales are down from previous years, our profits per sale have increased as a result of strategic buying," said Tait.

Tait, who has served with the Co-op board of directors for seven years, two of them as president, said the store's greatest challenge in moving ahead is keeping staffing levels up.

She said the Co-op managed to run efficiently at 90 per cent staff capacity last year but could still use more qualified people.

"There's no mistake that that's at the top of our list," she said.

The 200 or so Co-op members who attended the store's annual general meeting at the Tree of Peace Friendship Centre last week received a good piece of news: the Co-op is giving out a total of $625,000 in payback to members, including $500,000 in cash and $125,000 in shares.

"Last year our position was not as strong," said Tait.

The Co-op offered no payout to members last year.

This year's cheques should reach Co-op members by the end of May. There are currently 4,535 registered Co-op members in Yellowknife.

Tait also commended Walker for negotiating a five-year collective agreement with the store's workers.

"A five-year deal is practically unheard of in labour negotiations," she said. "One hundred per cent of employees were in favour of the agreement."