The Co-op has reported a significant rise in both revenue and profits as a result of strategic investments in its workforce and retail infrastructure, according to its latest financial results.
Group revenue increased by £0.1bn to reach £5.6bn, while group operating profit surged to £35m, up from just £3m in 2023. These impressive gains reflect the Co-op’s commitment to growth and resilience in a challenging market.
In its core grocery retail division, food revenue rose by 3.2 per cent to £3.7bn, compared to £3.6bn during the same period last year. The Co-op highlighted robust sales across its food stores and online platforms as key drivers behind this growth.
The Co-op also reported a 10 per cent increase in underlying operating profit for its food division, totalling £85m. This figure includes the impact of £39m in pay rises for staff and an £80m investment in its food retail estate.
Despite these positive results, the Co-op faced rising "leakage costs" – losses due to theft and fraud – which surged by 19 per cent to £39.5m. Nevertheless, the group’s food retail division outperformed the UK convenience market, recording sales growth of 7.4 per cent above the industry benchmark.
Shirine Khoury-Haq, Chief Executive of the Co-op, expressed her satisfaction with the company's performance: "We have delivered a strong performance for the first six months of this year as our strategy starts to gain real momentum."
She acknowledged the challenging external environment but emphasised the Co-op’s resilience: "It is testament to the underlying strength of our Co-op that we have outperformed in all our markets while significantly increasing our investments in our colleagues, pricing and in the growth of our businesses."
Looking to the future, the Co-op unveiled plans to open 120 new stores, including both retail and franchise outlets, by the end of 2025. This expansion is part of the group’s strategy to grow its food offering and reach more members. Additionally, the Co-op aims to increase its active member-owners to 8 million by 2030.
Khoury-Haq expressed optimism about the group’s future trajectory, stating: "While there is much more for us to achieve, we are on track to reach our goal of 8 million Co-op member owners by 2030. This confidence is supported by a strong balance sheet, a clear business strategy, a compelling vision, and 55,000 amazing Co-op colleagues who are central to our achievements over the last six months."
The Co-op's strong financial results highlight its growing momentum and continued investment in both its people and its retail footprint, positioning it well for future growth in an evolving retail landscape.
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