The future of its core business - the IGA Supa store in the centre of Kempsey - is in doubt, because of the market dominance of national supermarket chains, Richard O’Leary said.

The Co-op also owns the IGA Xpress convenience store at South Kempsey and the Co-op Fitness Centre, as well as the Centrepoint Arcade in Kempsey’s CBD.

In the Co-op’s annual report, the CEO said the latest full-year results had not matched expectation and described the 2012-13 period as a “very disappointing financial year”.

The Co-operative had an operating profit of $132,250 to the year ending June 30, 2013, but with depreciation of $278,809 and finance costs of $68,164, there was an overall loss of $214,723, before rebate.

The IGA Supa store was under independent review, which could lead to its closure.

Mr O’Leary told The Argus:

“We’re at a crossroads for at least the fifth time since the Co-op formed in 1905.

“This is a very important business, which is also a community asset.

“We’re a business with a conscience and with great belief in our employees.

“We have a structure based on our values and ethics.

“We’re not unique in that, but ours is a disciplined approach.”

Mr O’Leary said the Co-operative had done all it could to keep grocery prices competitive in the face of the buying power and supply practices of market leaders Woolworths and Coles.

The opening of the ALDI store eroded grocery sales further.

He is not hopeful the Australian Competition and Consumer Commission can curb the ‘Big Three’ and found little comfort in the supermarkets’ self-imposed regulations on supply chain management.

Co-op directors have shown their support for the IGA Supa store by helping to stack shelves on Wednesday evenings without pay, helping to reduce overtime costs, and Mr O’Leary said more voluntary input could be an option.

But he stressed the interests of employees and their families had to be protected.

This would be an important consideration in any changes to the Co-op’s structure, the CEO said.

Mr O’Leary said membership remained strong, with 4200 on the books, and ultimately it would be shareholders that determined the future of the supermarket.

Macleay Regional Co-Operative was committed to retaining and protecting value for members, he said.