Swiss grocer Coop has recorded an increase in net profit during 2010, despite significant price reductions and declining consumer sentiment.

The country’s second-largest retailer today (15 February) announced a 9.3% increase in annual profit to reach CHF470m (US$485.9m), adding that despite the economic environment, it managed to grow its core business, increase customer frequency and improve productivity.

The company’s consolidated turnover rose 1.7% to CHF20bn over the year.

Its Coop retail stores recorded a 0.6% increase in turnover for the year to reach CHF11.3bn, despite the company reducing prices by 2%.

The group highlighted its acquisitions of The Body Shop Switzerland, Railcare and the finalisation of the purchase of German food wholesaler transGourmet Holding in November.

Click here for Coop’s full earnings statement.