Co-optooverhaul funerals business after profit slump

THE Co-op is set to overhaul its funeral and life planning business after profits more than halved and the company revealed increased demand for low-cost funerals and cremations without ceremony.

Bosses want to implement the same turnaround they imposed on the food division of Co-op over the past five years, which helped sales in its supermarkets jump 3% to £3.7bn in the six months to July 6.

On a like-for-like basis the rise was 1.7%, with the company pointing out that this was against tough comparisons last year which included the Fifa World Cup.

Underlying pre-tax profits rose from £80m to £120m.

The wholesale division also improved, with 90% of Nisa partners now selling Co-op ownbrand products, and six franchise stores opened via Costcutter and on university campuses.

But the company warned that a no-deal Brexit would hit the business and could lead to fewer products on shelves.

It said: “With Brexit continuing to create uncertainty, we continue to plan and prepare as best we can.

“In the event of a no-deal Brexit there is an increased risk of some disruption to our supply chain; however, we will do all we can to protect our customers and members from this impact.”

In the funeral business, Coop said it was particularly keen to improve its offering, in a year which saw the competition watchdog, the CMA, launch an investigation into pricing.

Sales in the division fell 6% to £163m, partly due to a 10% reduction in the death rate, but also due to the “continued reshaping of the business in response to market changes”. As a result, profits fell from £28m to just £13m.

Co-op chief executive Steve Murrells said the business was being repositioned.