The Co-op bounced back into the black over its first half despite leakage costs from theft and fraud surging 19% to £39.5m amid the so-called shoplifting epidemic.
Group pre-tax profits rose to £58m for the first half, compared to a £33m loss the same time last year, as the chain confounded the “contraction in the wider food retail convenience market”.
In its food business, sales nudged up 3.2% to £3.7bn as it boasted a “strong” performance across stores and online. Food underlying operating profit jumped 10% to £85m, despite it absorbing £39m in wage increases as part of its commitment to paying the Real Living Wage, and it investing £55m into price.
The retailer said its performance was “significantly ahead” of the convenience market in the first half, up by 7.4 percentage points, according to Circana data.
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The group highlighted a 20% rise in its number of active members owners to 5.5m, which it said put it firmly on target to reach 8m members by 2030.
Looking ahead, Co-op said it planned to open 120 new stores across retail and franchise by the end of 2025, and would continue to look for ways to reach more members with its food offer.
CEO Shirine Khoury-Haq said: “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.”
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