One of the UK’s most popular supermarkets impressively saw its annual profits quadruple last year. However, Co-op did warn that more difficult times may lie ahead with £200 million of new headwinds and investment costs on their way.
The supermarket’s profits jumped from £28 million to £161 million however the group sales remained flat at £11.3 billion, reports The Grocer. Profit growth was led by strong improvements in food and life services although there was a decline in the wholesale business. The supermarket’s food sales grew 1.9% to £7.4 billion led by a 46% boost in online to £460 million. But despite this success, over the next year, the supermarket anticipates geopolitical issues, extended producer responsibility charges and higher National Insurance contributions.
CEO Shirine Khoury-Haq, said: “Our solid business performance alongside the progress we have made in right-sizing the business and delivering against our new strategy, is enabling us to create more value for our member-owners every day.
“While broader economic challenges remain, our businesses are delivering strongly against the market and I’m proud that we continue to provide support to our colleagues, members, and their communities through the continued cost of living challenges they face.”
Membership at the Co-op grew by 22% last year showing its increasing popularity with its now 6.2 million members.
The chain is the UK’s fifth biggest food retailer with more than 2500 local, convenience and medium-sized stores.
It has its origins in Rochdale, Lancashire – the Rochdale Pioneers Society was famously established in 1844.
By 1900 there were over 1400 separate independent co-operative businesses in the UK, all members of a wider Co-operative Movement.
Since then, the supermarket has become the largest convenience seller of Fairtrade products and has helped change the law, to help protect retail staff.
