The Co-op has returned to profitability despite the growing toll of shoplifting across its chain of more than 2,300 UK grocery outlets.

The mutual group - which also owns Nisa wholesale and provides funeral care and legal services - is now deploying artificial intelligence to identify offenders after a near-20% rise in losses to crime in the first half of the year. The £39.5 million hit from shoplifting and fraud has led to an £18m outlay so far this year on measures to protect staff and stock.

This has included the introduction of body-worn cameras and fortified kiosks, along with a trial in 14 of its stores where AI has been installed to detect if someone has left without paying for an item or is carrying a concealed weapon.

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The Co-op is certainly not alone in the grocery industry's fight against the rising tide of the five-finger discount. Tesco, Asda, Waitrose, Morrisons, Aldi and Lidl have all reported rising incidents of theft in a trend that has been attributed to the cost-of-living crisis.

According to data presented earlier this year at a meeting of the Scottish Policy Authority there were 8,880 such thefts reported between April and June of this year, a 21% increase on the same period in 2023. In reality, the actual numbers will be far higher and this has led to an increase in threats and assaults against shop staff.

“It isn’t going away," said Matt Hood, managing director of food operations at the Co-op. "The reality is that every day four of our colleagues are attacked, up 34% on 2022, and scarily, a further 115 of my colleagues will be seriously abused, up 37% on two years ago.”

He added that the group's investments "are working" – "our colleagues feel safer and we’re making them safer" – but it is unlikely there will be an immediate drop in thefts in the second half of this year.

“I think it is going to be slightly longer-term than that, and that has to be in conjunction with any changes the government makes to the law," Mr Hood said.