Nisa performs ‘strongly’ in first half of the year

The symbol group’s wholesale revenues increased 13.9% to £801m, benefitting from local shopping in lockdown and range improvements under Co-op ownership, as it signed up 304 new stores.

In addition, Co-op reported a 5.2% growth in food revenue to £3.9bn in the 26-weeks to 4 July as customers shopped closer to home and ate out less frequently during lockdown.

The food business posted an 8.8% increase in like-for-like sales, its underlying operating profit of £175m – up from £120m last year, and its underlying profit rose 46% to £175m.

The retailers said 1.7m new households shopped at Co-op during the 26-week period and its average basket size doubled as customers reduced visits.

Co-op said Covid-19 cost £54m in the 26-week period, including additional recruitment and PPE purchase, and is expected costs of £97m for the full year. However, it received £33m government support in the first half in business rates relief and furlough payments for a “limited number” of colleagues.

Co-op has resumed its store opening programme and have made a commitment to invest £130m in opening 50 stores, giving 15 stores significant extensions, and giving 100 further outlets major makeovers, creating 1,000 jobs before the end of the year

Steve Murrells, chief executive of the Co-op, said: “We are living in unprecedented times, but the response of our Co-op has been exceptional and I’m immensely proud of my 60,000 colleagues who’ve helped to feed and care for the nation during this difficult period. We’ve shown how our co-operative approach to doing business provides enhanced value for our customer-members and the communities in which they live. At a time of crisis, our country needs a strong and progressive Co-op and these results evidence that we are ready to deliver even more for our key stakeholders.

He added:  “The coming months and years remain uncertain, and we know our own Co-op will not be immune to the pressures the recession brings to family budgets and to local and national economies.  We will continue to invest within our core businesses to ensure that our Co-op value resonates within Co-op households and local communities.”