THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Co-op makes a return to profit

The Co-op has made a return to profit and reported a strong performance at its food retail business.

FOOD & DRINK

Co-op makes a return to profit

The Co-op has made a return to profit and reported a strong performance at its food retail business.

The group said full year like-for-like sales at its food business rose by 3.4% in 2017 despite a “highly competitive” market. Convenience store like-for-like sales rose by 4.3%.

Total sales for the year were £7.054 billion compared to £7.064 billion in the previous year following the sale of 298 smaller food stores to McColl's Retail Group.

Underlying operating profit at the food business, excluding any one-off items, property and business disposals and the change in value of investment properties, was in line with last year at £182 million.

The Co-op said the business benefited from strong Christmas trading with a 6.2% jump in like-for-like sales over the two weeks to 1 January. This was almost double the 3.5% sales growth it reported in the previous year. Overall, its Christmas and New Year sales were up 9%.

During the period, the Co-op made a £50 million investment in reducing prices. It also in the process of expanding its convenience store estate with 100 new stores planned for 2018. In addition, a "pay in the aisles" pilot is underway as the retailer looks to enhance the shopping experience for customers in-store.

Across the wider Co-op which includes funeralcare, insurance and wholesale businesses, pre-tax profit was £72 million compared to a loss of £132 million in the prior year. The 2016 loss reflected a write down of a stake in the Co-operative Bank. Underlying pre-tax profit rose by 25% to £65 million.

Steve Murrells, chief executive of the Co-op, said: "Today's results show how much progress we have made. The success we are enjoying shows that the Co-op's difference really resonates today - a different ownership model and a different approach to business, based on returning profits to our members and their communities.”

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The HR Summit 2018
The HR Summit 2018
Wednesday 3 October 2018
The Cavendish Conference Centre, London W1
The 10th HR Summit 2018, The Cavendish Conference Centre, London W1, 3rd October 2018
The Retail Design Seminar 2018
The Retail Design Seminar 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Seminar 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
Fix The Dinosaur Roundtable 2018
Fix The Dinosaur Roundtable 2018
19 October 2018
The Euston Suite, The Hallam, 44 Hallam St, London W1W 6JJ
A Masterclass in IBMi Legacy Issues