Retail cooperatives are organizations formed by a group of independent retailers who come together to enhance their purchasing power and reduce costs. By pooling their resources, these members can negotiate better prices from suppliers, share marketing expenses, and benefit from collective advertising efforts. This collaboration helps smaller retailers compete with larger chains. Members of a retail cooperative typically share profits based on their sales volume, fostering a sense of community and mutual support. Examples of retail cooperatives include Ace Hardware and REI, which allow independent businesses to thrive while maintaining their unique identities.