Co-op has reversed its previous year’s loss, reporting a notable rise in profits.
- Group profit before tax soared, with a significant contribution from a decrease in interest payments.
- Co-op’s rapid growth in quick commerce has made it the leading grocery provider on major delivery platforms.
- The retailer has heightened member engagement and is focused on reaching 8 million members by 2030.
- Significant investments in staff, pricing, and community support underscore Co-op’s robust performance.
Co-op has successfully transitioned from a £33 million loss last year to a profitable position in 2024. This notable turnaround is attributed to robust sales in both its physical food stores and online platforms.
In the first half of 2024, Co-op’s group profit before tax improved substantially by £91 million, reaching £58 million. This increase was largely driven by decreased interest payments and reduced non-underlying charges. Furthermore, the underlying operating profit within the food sector alone rose by 10%, amounting to £85 million.
Group sales experienced a modest growth of £0.1 billion, totalling to £5.6 billion, while the food business saw its sales climb by 3.2%. In the sphere of quick commerce, Co-op’s sales saw an impressive surge of 62%, reaching £217 million, securing its position as the dominant grocery supplier on leading delivery services like Deliveroo, Just Eat, and Uber Eats.
Co-op CEO, Shirine Khoury-Haq, expressed confidence in the company’s performance, noting the strategic momentum gained during this period. Despite a challenging external environment, Co-op outperformed expectations across various markets while significantly boosting investments in staff, pricing, and business expansion.
During the first half of the year, membership engagement strengthened remarkably with a 36% penetration in food stores and a 20% increase in active member owners, bringing the total to 5.5 million. Notably, there was a 79% rise in new members aged 25 and under. Co-op is firmly on course to increase its membership to 8 million by the year 2030.
Plans are underway to launch 120 new stores across both retail and franchise formats by the conclusion of 2025. Khoury-Haq has attributed this confident outlook to the company’s solid balance sheet, clear business strategy, and the dedication of its 55,000 colleagues, who are integral to Co-op’s achievements.
In light of ongoing economic challenges, Co-op has channelled £130 million into various support initiatives. This includes £48 million in raising colleague pay, £18 million in discounts, £55 million in reducing food prices and member promotions, and £9 million towards community support.
Co-op’s strategic initiatives and investments have set a solid path for continued growth and member engagement.
