Co-op returns to profit in H1 despite rise in shoplifting
It stated that its naming rights sponsorship of the new Co-op Live venue in Manchester, which opened in May, directly resulted in 54,000 new member-owners joining in H1
Co-op has returned to profit in its half-year results, posting a pre-tax profit of £58m for the half year ended 6 July 2024, up from a loss of £33m in the same period last year.Alongside this, the company reported a small increase in revenues, which rose to £5.6bn, up from £5.5bn in the same period last year.
This came despite leakage costs (theft and fraud) increasing 19% to £39.5m, up from £33.3m in the same period last year, as shoplifting rose over the period. The group said it has continued to focus on campaigning on behalf of its staff on retail crime.
Profits also rose despite a rise in wage costs, as store employee pay rose to at least £12 per hour, up 10.1% on last year, and representing a 21% increase since March 2022.
Shirine Khoury-Haq, chief executive of the Co-op, 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.
“While there is much more for us to achieve, we are on track to reach our goal of 8 million Co-op member owners by 2030. This confidence is supported by a strong balance sheet, a clear business strategy, a compelling vision, and 55,000 amazing Co-op colleagues who are central to our achievements over the last six months.”
Debbie White, chair of the Co-op, added: “These results demonstrate the progress we have made over the last six months. I’m delighted we have grown our membership by 20%, with our 5.5-million-member owners central to our plans and at the heart of our Co-op.
“I’d also like to thank all our colleagues for their hard work and dedication, which has enabled us to deliver this improved performance. We continue our focus on growing our membership to create more value for our member-owners, and in turn communities across the UK.”
