Despite record levels of shoplifting in grocery stores, the co-op signed up one million new members last year and invested more than £90m in lowering prices, including introducing special discounts for members. This increased the profits of the food business.
Profit rose 11% year-on-year to £154m, despite sales down 6.4% to £7.3bn following the sale of the Co-op petrol forecourt chain to Asda. Ta. Underlying sales, which exclude the impact of this transaction, rose 4.3%, but still far behind the pace of grocery inflation.
Co-operative group chief executive Shireen Khoury-Haq said the past year had faced “challenging trading conditions, volatile markets and continued financial headwinds”, but that she was looking forward to “taking our co-op to the next level”. I will continue to lead them to a position like this.” Our member-owners are firmly at the center of everything we do, and we strive for growth. ”
He said that although the market will continue to be difficult in 2024, the group is “setting the foundations for its strategic growth plan”, including signing up 400 independent retailers to the NISA Wholesale Group.
The Co-op group, which includes funeral, legal and insurance divisions, plans to open franchise stores in hospitals and petrol stations this year and invest £100m in special member discounts on more than 100 product lines. Membership currently stands at 5.2 million, an increase of 14% year-on-year, and he is aiming for 8 million by 2030.
It also plans to further accelerate growth in the fast-growing grocery market by partnering with companies such as Just Eat. The business’ online sales last year were £311m, up from £222m the year before.
Total group sales fell 1.7% to £11.3bn due to the sale of the petrol forecourt business, with all continuing operations reporting growth. The group’s pre-tax profits fell by almost 90% to £28m, but taking into account a one-off gain of £319m from the sale of its petrol forecourt division in 2022, the group moved out of the red.
Corey Haq’s salary rose 7.5% to around £1.7m after he received an £844,000 bonus for meeting targets such as profits, membership and community support. If she remains with the group, she will receive the same amount in two years, according to the co-op’s annual report, also released on Thursday.
Corey Haq said the group’s net debt had been reduced by 90% to £82m from £900m two years ago, helping it navigate a “very turbulent external environment”.
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“While the market continues to be difficult, we remain firmly in control of the co-op and our destiny,” she said.
Dennis Scott-Macdonald, chairman of the Co-op’s National Member Council, said members were saving almost three times more per week than under the previous remuneration system, which led them to shop more frequently. Stated.
