For the first time in three years, the Harvard Coop will pay students a rebate on merchandise purchased during the last academic year.

The 3.5 percent rebate represents the Coop's first profitable season in many years. All students who held a Coop account number for the 1996-1997 school year will be able to receive their rebate checks beginning October 20.

"There was a profit earned in that period that allowed us to return some of it to students," said General Manager Allan E. Powell.

Members of the Coop management attribute the profit to a new business structure that the Coop first initiated in September 1995.

The Coop went into a partnership with Barnes and Noble Booksellers and tightened the focus of its merchandise. The Harvard Square location of the store is also currently being renovated.

"We got out of selling merchandise that no longer interested the customer," Powell said. "We went out of men's clothing, women's clothing, cosmetics, basically a lot of categories of merchandise that the customer can buy in one of the super stores."

The Coop now concentrates on insignia, books and stationery products.

"Our new renovations will draw attention to these core products," said Coop President Jeremiah P. Murphy '73.

Many students said they are pleasantly surprised by news of the late.

"I've never received a Coop rebate," said Nester Q. Clark '98. "I look toward to receiving the money at some point, because I've bought a lot of books."

The rebate may also attract students who do not own a Coop number.

"I don't usually buy anything from the Coop, but maybe now I'll shop there," said Daniel H. Choi '94, a fourth year graduate student.

"I'm not a Coop member, but it's nice to know that they're giving students a rebate this year because they haven't for so many years in the past," said Michele A. Casey '99.

Murphy said he hopes that this year will begin an upswing for the Coop and will generate profits and student rebates in upcoming years.

"We're anticipating staying profitable for the next few years and hopefully adding to the rebate," Murphy said. "We want to make sure the members feel valued. We want students to feel it's worth their dollar to be a member."