The Co-op Food profits soar 50% as like-for-likes jump

Food like-for-likes edged up 1.7% with total sales up 3% to £3.7bn despite what it termed the “highly competitive” trading environment.

The grocer said it was helped by warm weather over the Easter bank holiday and its competitive offer resonated. Its summer saver deals have also proven popular.

In wholesale, 90% of Nisa stores have now taken Co-op own brand products, which generate weekly sales of £2.5m. 

Co-op chief executive Steve Murrells said: “We’ve enjoyed another good six months where the strength of our business has led to a further £35m of value being generated for our members and their communities.

“Our food business continues to perform strongly in a highly competitive market and has now recorded 22 consecutive quarters of like-for-like sales growth. As our largest business, it is providing the fuel for our growth in terms of member value and community impact.”

The grocer has also established six Co-op franchise stores, three of which are Costcutter-owned and three are on university campuses, which it said provided valuable market data to help ensure that “Co-op continues to meet the needs of a younger audience”.

Co-op chairman Allan Leighton said: “the Co-op is now 175 years young, and we have worked hard to ensure that we remain relevant to all generations and in particular younger co-operators.

“Whether this is using our presence at eight music festivals to introduce people to our values and ways of doing things, or by developing motor insurance products specifically with the needs of young drivers in mind. The Co-op is thriving and we are committed to growing our Co-op difference and impact for generations to come.”

However, the grocer said that Brexit was creating uncertainty and warned that a no-deal scenario would increase the risk of supply chain disruption.