Co-op returns to profit with new ‘focus on convenience’

The Co-op has returned to profit and announced it will have “a greater focus on convenience”.

It said this included using its upcoming supply deal with Costcutter stores and its takeover of Nisa to lower its wholesale prices through improved buying power.

Coupled with its plans to add 100 new stores in 2018, Co-op CEO Steve Murrells said the tie-ups with independent retailers would allow it to “deliver more Co-op products and services to more people throughout the country”.

If the Co-op’s plans continue as expected, by the end of 2018 it will supply one in six convenience stores in the UK, more than treble its current market share.

The group reported a £72m profit and a 3.4% rise in like-for-like food sales. The results show that its strongest store sales came from its small convenience format locations, where food sales rose 4.3%. However, overall its store sales fell by £10m compared to 2016.

As part of the retailer’s planned convenience expansion, the Co-op recruited 200 ‘member pioneers’ designed to improve community engagement near Co-op stores through supporting local causes. It added that it plans on recruiting a further 1,300 member pioneers over the next two years.