Co-op profits boosted by Somerfield takeover
Britain’s largest mutually-owned retailer, the Co-operative Group, has today posted “record sales and profits” for the 2009 year after its acquisition of Somerfield and its merger with the Britannia building society.
The group said underlying operating profits before significant items soared 20% to £473 million over the year, while revenue was £13.7 billion.
Meanwhile, the Co-operative group’s grocery division, which is now the UK’s fifth largest food retailer with 3,000 stores, experienced a 5.5% rise in like-for-like sales.
The acquisition of Somerfield strengthened food revenues by £3 billion to £7.5 billion.
However, the group was cautious in its outlook for the economy this year and the group said “economic pressures” are likely to continue into the first half of 2011.
According to Peter Marks, Co-op chief executive: “These are record results in what has been an historic year for the Co-operative Group”.
He added: “Our business has continued to thrive in spite of economic pressure, and I am pleased to report that we are on track with the integration of both Somerfield and Britannia.”
Mr Marks also said its financial services arm is benefiting from consumers withdrawing their cash from the larger banks as they lose trust and are attracted by the mutual model.
The Co-op runs a range of businesses, from financial and funeral services to travel agents and pharmacies.
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