One of Britain’s biggest co-operative societies has announced a drop in profits on the back a highly competitive retail environment and “uncertain economic backdrop”.
Central England Co-op reported a trading – or gross – profit of £11.4 million in the first half of the year, compared to £12.9 million a year ago.
Gross sales were up 1.6 per cent to £484.6 million.
The Staffordshire-based business, which covers 16 counties stretching from the Midlands to the East Coast, said sales were up thanks to a handful of new stores and an expanded Travel Shop network.
The business has 8,000 staff and 400 outlets and has a history going back 165 years.
Every year 1 per cent of its trading profits goes to local good causes. In all 60 groups and good causes shared £90,000 from its community dividend fund in the first half of the year while £2.3 million was distributed to members, staff and the wider community.
The 28 weeks saw Central England Co-op open four new food stores and a funeral office and refurbish nine other sites.
Further investment in new sites and refits are planned for the second half of the year and on into 2020.
Chief executive Debbie Robinson said: “In a challenging market, our gross sales increased and trading profit is in line with budget, reflecting a steady performance for the society in the face of a highly competitive retail environment and uncertain economic backdrop.
“We remain committed to investing in our future and have opened new stores and a funeral booking office alongside refurbishing several other sites.
“In difficult times, I believe our co-operative difference will set us apart and see us thrive while others may flounder.
“Together we will grow and prosper by embracing our values of self-help, self-responsibility, democracy, equality, equity and solidarity.”
Society president Elaine Dean said: “So far this year we have seen the arrival of our new chief executive, Debbie Robinson, following the retirement of her predecessor Martyn Cheatle.
“Debbie joined us in March and really hit the ground running from day one – you may already have spotted the many changes taking place as Debbie drives us forward as a community retailer.
“Despite facing difficult trading conditions, our Society is holding its own in a competitive and challenging market.
“The board has commenced a detailed review of our strategy with the aim of confirming our ambition to be the best UK co-operative and to be a leader in the movement when it comes to good practice.”
Central England Co-operative will report on its full year performance at the end of January.
