Co-op profits rise as shoppers flock to stores
THE CO-OPERATIVE Group has nearly doubled its half year profits, thanks to strong growth at its supermarkets and its acquisition of Scunthorpe-based wholesaler Nisa.
The Co-op’s stores enjoyed a healthy 4.4 per cent rise in likefor-like sales in the six months to July 7, its 18th consecutive quarter of like-for-like sales growth.
The group said it had a successful first half against a backdrop of increasing economic uncertainty. The Co-op’s non-executive chairman Allan Leighton said the growth comes despite a tough trading environment.
“Against a backdrop of increasing national uncertainty, I’m pleased that the Co-op has continued to perform successfully during the first half of the year,” he said.
“It is in these times of volatility that our way of doing business, which gives back to our members and the communities we operate in, becomes even more important.
“These results show that we are growing our business and increasing the positive impact we can have on our members and the causes they care about in their communities.”
The firm’s pre-tax profit rose 86 per cent to £26m over the sixmonth period. Sales rose 10 per cent to £5bn.
Strong food sales growth was linked to its offers around the World Cup, as well as benefits from the acquisition of convenience store business and wholesaler Nisa.
That takeover helped wholesale revenues reach £269m.
Mr Leighton said the group has “exciting plans” to make the Coop more competitive, relevant and innovative in both existing and new markets.
“We’ll continue to grow our current businesses and through our Ventures team we’ll move into new areas where we can deliver even more value for our members and their communities,” he said.
The Co-op was formally given the all-clear for its £138m takeover of Nisa earlier this year, expanding its wholesale supply to over 7,700 stores.
By the end of this year, the Co-op will supply 850 of its own branded product lines to Nisa partners.
The group’s funeral and life planning business also reported strong results, with revenues ris ing 5 per cent to £174m. This was linked in part to a higher death rate in the first quarter.
The Co-op is now focused on slashing the cost of its funerals as sector competition for budget services ramps up.
The mutual’s funeral division is reducing the cost of its “simple funeral” by £100 to £1,895, and by a further £200 for its 4.7 million members.
The Co-op is Britain’s sixth largest supermarket group, with a market share of 6.6 per cent, according to the latest industry data.