Co-op has reported an increase in group revenue despite a drop in profit over the last six months, following investment in promotions and stores.

For the six months ending 4 July, the convenience giant saw group revenue inch up 2.4 per cent to £5.6bn, despite posting an underlying operating loss of £45m, compared with £32m a year earlier.

Co-op said £11m of the year-on-year movement reflected accounting treatment, while investment in margin and its customer proposition also affected first-half profitability.

Food Retail revenue increased 2.6 per cent to £3.7bn, with convenience market share rising to 13 per cent. Quick-commerce sales grew 24 per cent and were expanded to 90 per cent of stores.

Co-op opened 42  new food stores during the period, including new sites, refurbishments and franchise locations, while 135 essential products were price-matched to Aldi for members.

Wholesale and Franchise revenue was flat at £683m, although franchising grew 26 per cent, with 11 new openings. Co-op also opened 164 wholesale stores and secured new business agreements worth £142m in total contract value year to date.

Looking ahead, Co-op said its financial position remained resilient, with net debt excluding leases falling from £317m at the end of 2025 to £239m.

“2026 is looking like a year of two halves for our Co-op,” said interim chief executive, Kate Allum.

“The first half was characterised by difficult markets and low consumer confidence, especially for Food Retail.”

“Against those conditions, we made decisions to drive trade – investing in promotions and investing in our stores – while also mitigating rising costs. These things have had a short-term impact on profitability.”

“Speaking now in the second half, we’re seeing bigger baskets and more transactions. Conditions remain challenging, but we see reasons for confidence across our portfolio, having delivered strong growth in areas such as online convenience shopping and funerals.

“We expect to see a stronger performance in the second half than the first, with sales growth and improvements in profitability.

“Our immediate goal is to establish the firm foundations we need to realise greater growth in the years ahead – something we’re gearing up for as we progress our plans to join forces with Southern Co-op.”

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