The Co-op has successfully returned to profit in the first half of the year despite a sharp increase in shoplifting costs.
- Shoplifting and fraud have increased by 19% costing the Co-op £39.5 million.
- Group pre-tax profits rose to £58 million, overturning a £33 million loss from the previous year.
- Sales in the food segment have increased by 3.2% to £3.7 billion, with a significant rise in operating profit.
- The company plans to open 120 new stores by the end of 2025, aiming to expand its member base.
The Co-op has made a remarkable turnaround, swinging back into profitability in the first half of the year. Despite grappling with escalating costs due to a sharp rise in shoplifting and fraud—amounting to a staggering £39.5 million—the group has managed to emerge financially stronger.
The group’s pre-tax profits have risen significantly to £58 million in the first half of the year, successfully reversing a substantial loss of £33 million in the same period last year. This shift in fortunes defies the general trend of a contraction in the broader food retail convenience market.
Sales within the Co-op’s food division have experienced a moderate increase of 3.2%, reaching £3.7 billion. This growth has been complemented by a strong performance across both in-store and online platforms. Consequently, the underlying operating profit for the food business saw a 10% increase, totalling £85 million. This comes even as the business absorbed £39 million in wage increases, as part of a commitment to the Real Living Wage, alongside a £55 million investment into pricing.
According to data from Circana, the company’s performance is notably ahead of the competition in the convenience market, surpassing it by 7.4 percentage points in the first half of the year.
In line with its strategy to reach more members and boost its market presence, the Co-op plans to inaugurate 120 new stores, both retail and franchise, by the end of 2025. This is part of an effort to increase its member base from the current 5.5 million to a target of 8 million by 2030. CEO Shirine Khoury-Haq expressed confidence in the strategy, acknowledging the challenges but highlighting the company’s momentum and the investments in employees, pricing, and business growth.
The Co-op’s strategic initiatives and robust performance have set a strong foundation for future growth despite present challenges.
