Co-op Back in Profit as Food and Quick Commerce Sales Surge

Convenience Retailer Co-op Reports Profit Rebound Following £33M Loss Last Year

Co-op has made a significant return to profit after experiencing a £33 million loss last year, thanks to strong sales across its food stores and online platforms. In the first half of 2023, the convenience retailer’s profit before tax surged by £91 million, reaching £58 million. This remarkable turnaround was driven by lower interest payments and reduced non-underlying charges, along with a 10% increase in food underlying operating profit to £85 million.

Strong Growth in Sales Across All Segments

Group sales for Co-op rose by £0.1 billion, totaling £5.6 billion, while its food business saw a 3.2% increase in sales. Quick commerce was a standout performer, with sales soaring by 62% to £217 million. By the end of the first half, Co-op had become the largest grocery provider on popular delivery platforms such as Deliveroo, Just Eat, and Uber Eats.

Co-op CEO Shirine Khoury-Haq commented on 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. Although the external environment remains challenging, 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.”

Boost in Membership and Expansion Plans

The retailer also reported an increase in member engagement, with member penetration in its food stores reaching 36%. The number of active member owners grew by 20% to 5.5 million in the first half of the year, with a notable 79% increase in new members aged 25 and under. Co-op remains on track to achieve its goal of 8 million members by 2030.

Looking forward, Co-op plans to continue its expansion, aiming to open 120 new stores across its retail and franchise network by the end of 2025.

Investment in Colleagues and Communities

During this period, Co-op invested £130 million to support colleagues, members, and communities amid ongoing cost-of-living challenges. This included £48 million towards colleague pay, £18 million in colleague discounts, £55 million in lower food prices and member offers, and £9 million to support community initiatives.

Khoury-Haq added, “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.”

Conclusion: A Promising Future for Co-op

With a robust financial performance, increased member engagement, and a clear strategy for growth, Co-op is well-positioned for future success. The retailer’s strong recovery and ambitious expansion plans signal a promising trajectory as it continues to strengthen its presence in the UK market.