The Co-op returned to profitability in the first half of the year despite losing almost £40 million to shoplifting and fraud.
The mutual group - which also owns Nisa wholesale and provides funeral care and legal services - said its food division performed "significantly ahead" of the convenience market and is now the leader in quick commerce, according to data from Fox Intelligence. Underlying operating profit within the division was up 10% to £85m, despite absorbing £39m in wage increases and a £55m investment on lowering prices.
Food retailing took a £39.5m hit from shoplifting and fraud in the first half across it network of more than 2,300 outlets, up 19% on the same period a year earlier. The Co-op has spent £18m so far this year on measures to protect its staff and stock via body-worn cameras, fortified kiosks, and AI detection technology.
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The group reported a pre-tax profit of £58m for the first six months of 2024 against losses of £33m previously and said its stronger balance sheet would allow it to expand with new stores and possible acquisitions. It is currently planning to open 120 new retail outlets across the UK by the end of 2025.
The number of active member owners rose by 20% to 5.5 million, which the Co-op said puts it firmly on course to reach its target of eight million by 2030.
“We have delivered a strong performance for the first six months of this year as our strategy starts to gain real momentum," chief executive Shirine Khoury-Haq said.
“Although the external environment remains challenging, it is testament to the underlying strength of our Co-op that we have outperformed in all our markets while significantly increasing our investments in our colleagues, pricing and in the growth of our businesses.”
Revenues in the Nisa wholesale business were down 2.9% at £700m and the business made a loss of £8m against a profit of £3m previously. This was attributed to the "wider challenging market and our decision to make significant price investment across hundreds of products to support partners in an increasingly challenging market".
Legal services was the star performer in the life services division with a 35% increase in revenues to £42m driven by probate and estate planning. Revenue in funeral care rose by 1.4% to £148m on the strength of pre-paid funeral plans.
Travel insurance sales rose by 54% and life insurance was 35%following a refresh of the life insurance range with additional features.
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