Co-op to overhaul its funeral arm
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 £80 million to £120 million.
The wholesale division also improved, with 90% of Nisa partners now selling Co-op own-brand products, and six franchise stores opened via Costcutter and on university campuses.
But the company warned that a nodeal Brexit would hit the business and could lead to fewer products on shelves.
In the funeral business, Co-op 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 £163 million, 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 £28 million to just £13 million.
Co-op chief executive Steve Murrells said: “In funerals we are actively repositioning the business to meet the changing needs of our members.
“We are the market leader but we will also lead the market in providing better choices and options for our customers in the years ahead.”