Co-op has returned to profit in 2024 following a significant loss the previous year, buoyed by robust sales in both physical and online food markets.
- In the first half of 2024, Co-op’s group profit before tax rose by £91 million, reaching £58 million, aided by reduced interest payments and non-underlying charges.
- The company’s food business saw sales increase by 3.2%, with a notable 62% growth in quick commerce activities, positioning Co-op as a leading grocery provider on platforms like Deliveroo and Just Eat.
- Co-op’s CEO, Shirine Khoury-Haq, credited the company’s strategic momentum and the strength of its operations for the performance during a challenging external environment.
- Membership within the food stores increased to 36%, with significant growth in younger member demographics, setting an ambitious target of 8 million members by 2030.
Co-op has made a remarkable recovery, achieving profitability in 2024 following a previous year’s loss of £33 million. The turnaround is largely attributed to strong sales performances across its food stores and online platforms. A notable increase of £91 million in group profit before tax has been recorded, reaching a total of £58 million. This financial growth has been supported by lower interest payments and a decrease in non-underlying charges.
During the first half of the year, Co-op’s food sector demonstrated significant strides, with an underlying operating profit increase of 10%, totalling £85 million. The overall group sales have seen a modest rise by £0.1 billion, amounting to £5.6 billion, with the food business alone witnessing a 3.2% sales increase.
Quick commerce, a rapidly growing sector for Co-op, reported a remarkable 62% sales growth. The retailer’s strategic partnerships with delivery services such as Deliveroo, Just Eat, and Uber Eats have positioned it as the largest provider within this space by the end of the first half.
In terms of customer engagement, Co-op has seen an increase in member penetration within its food stores, reaching 36%. The number of active member owners has also grown by 20% to 5.5 million within the first half of the year. The company has set a goal to achieve 8 million members by 2030.
Looking forward, Co-op has announced plans to open 120 new stores in both retail and franchise models by the end of 2025. CEO Shirine Khoury-Haq has expressed confidence in the company’s strategy, underscoring a strong balance sheet and a dedicated workforce of 55,000 colleagues as central to Co-op’s success.
The retailer has further invested £130 million to support its colleagues, members, and communities amidst ongoing cost-of-living challenges. This includes £48 million in colleague pay, £18 million in colleague discounts, £55 million to lower food prices, and £9 million towards community support initiatives.
Co-op’s strategic advancements and robust operational framework have facilitated its return to profitability, reinforcing its position in the competitive retail market.
