Co-operative Group gains market share, profits up 17%
Britain’s largest mutually-owned retailer, the Co-operative Group, has today posted a 17% increase in profits for the six months to 25 July of £228.8 million.
The retailer, which is the UK’s fifth largest following its acquisition of Somerfield, said sales of its re-launched and extended ‘Simply Value’ range were up almost 80% on the year.
Excluding fuel and VAT, like-for-like food sales grew by a market-leading 7.3%. This followed Tesco rise of 3.7%, while Sainsbury’s reported 5.7%.
According to Peter Marks, Co-op chief executive, the group’s focus on “value and values” rather than on price alone had helped it gain market share.
The chain has sold 200 of the 400 Somerfield stores it bought in February to meet competition rules and has so far converted 29 to Co-op outlet.
Meanwhile, Mr Marks said the group’s funerals and electricals business experienced good performances, while Co-op travel and pharmacy performed well in “extremely challenging” markets.
Co-operative Funeralcare increased profits by 16.7% to £28.1 million, while its travel division was hit by the recession with profits falling to £2.5 million from £7.9m a year ago.
Mr Marks adds: “In spite of our recent success, it would be naive to think that we are immune to the recession. That said we are pleased with our half-year performance, the second half has started well and we look ahead to the future with renewed confidence.”
Finally, not only did the Co-op acquire Somerfield, in August this year it merged with building society Britannia.
The merger, which was completed on 1 August 2009, has resulted in one of the largest and most diversified financial mutual businesses, with over £70 billion in assets and over 300 branches.
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