AS Scotmid chief executive John Brodie announces his decision to retire next August after 30 years with the co-operative – 20 of them as CEO – he will no doubt reflect on the raft of changes witnessed by the business and indeed the wider retail sector.
The chartered accountant, who recalls life at Scotmid with half-day closing on Wednesdays and Saturdays, says that arguably the biggest changes in his years at the helm of the society and before that have been “massive advances in technology” and changes in consumer behaviour in how people shop and what they buy, as stores open earlier and shut later.
Pointing out that “retail is a beneficiary of a buoyant economy”, he understandably highlights the “continued trading headwinds” with high inflation and the cost of living crisis having an impact on household income and discretionary spend, along with supply chain disruption due to the war in Ukraine and extreme global weather conditions.
He also says that like most retailers across the UK at present and against a backdrop of the cost of living crisis, the society has seen an increase in crime although the business continues to trial security technology and work with external agencies to combat shoplifting and other incidences of crime while keeping staff and customers safe.
The spike in shoplifting and other crimes including assault of retail staff has been thrust into the spotlight with the Protection of Workers (Retail) Act, delivered by Daniel Johnson MSP with the support of the Scottish Grocers’ Federation (SGF), which came into force two years ago.
But Mr Brodie shares the view of many retailers that figures on referrals and convictions relating to the Act must be made public to show that it is a working deterrent – and there must be an improvement in police response times.
Meanwhile, Scotmid’s food division delivered solid performances in both sales and distribution while the Edinburgh-headquartered group saw trading profits rise to £1.5 million for the 26 weeks ended July 29, 2023 – up £0.4m on its interim results last year. Turnover was up by £12m to £212m with net assets increasing to £122.8m.
“With the current market and economic challenges, it was expected that our profit levels may not be maintained in the first half of the year,” Mr Brodie noted.
“However, innovation and cost control by the team, as well as head office restructuring earlier in the year, has allowed us to deliver a solid performance. We have proactively identified areas for continuous improvement in the period, allowing us to best serve our customers and communities, and maximise sales opportunities.”
As Scotmid seeks a new CEO to replace a man described by Scottish Retail Consortium director David Lonsdale as a “towering figure in Scottish retail”, Mr Brodie – who will remain as SRC chairman until next spring having steered both his own business and the industry organisation through some of the most turbulent and challenging times the retail sector has ever faced – is quick to point out that “it’s certainly not goodbye yet”.
Noting that there remains a “great deal of work to be done between now and next August so it’s very much business as usual”, it is clear that he will continue to lead from the front through existing turbulent headwinds and emerging challenges – as well as supporting charities and good causes.
“Scotmid exists to serve our communities and improve everyday lives,” he said.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here