Scotmid ‘strong’ despite challenges to retail

Convenience stores to funerals group Scotmid Co-operative said it expected 2017 to be “another challenging year”.

The group, which operates from more than 350 outlets and owns the Semichem chemist chain, made the prediction as it unveiled a £6 million increase in turnover to £376m for the year to January 28.

At £5.3m, trading profit was £400,000 lower than the previous year but chief executive John Brodie insisted the group had returned a strong underlying performance given the mutual was operating in a period of “unprecedented uncertainty” and was hit by significant external cost increases from the National Living Wage.

The group has had to swallow rising pay for a workforce of more than 4,000 staff and Mr Brodie said the society faced a further expense of around £500,000 in this financial year from the introduction of the apprentice levy.

Further pressure on costs, changing consumer habits and the impact of Brexit will also continue to impact on the group this year.

However, Mr Brodie said the group had maintained its strong asset base at £91.5m and, through a combination of innovation and investment, had a plan to drive growth in the months ahead.

He said: “In response to this general unfavourable background, Scotmid will continue to seek out new sales initiatives or innovative cost control measures as part of the continuous improvement philosophy which has served the society well for a number of years.”

A customer is served at Scotmid.