The Co-operative Group has said that it remains “confident” of a continued strong performance despite the global economic downturn after posting a bumper set of first-half profits today (24 September).
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The UK’s largest mutual retailer is beginning to see the benefits of its three-year brand and store overhaul and will consolidate its position as the nation’s fifth-largest retailer if its takeover of Somerfield is approved, the company said. If the Co-op acquisition gets the go-ahead from the UK’s Office of Fair Trading it would raise the company’s market share to 8%.
The Co-op’s food business saw its trading profits jump 68% to GBP126m (US$233.3m) in the 28 weeks to 26 July. Overall, group profits rose 36% to GBP191.2m.
Like-for-like food sales rose 5% with overall revenue from food rising 43% to GBP2.4bn. Group turnover climbed 34% to GBP4.02bn.
Chief executive Peter Marks said the Co-op’s overhaul would not be derailed by tougher trading conditions over the next year.
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By GlobalData“The credit crunch, the ongoing slow-down in the housing market, food price inflation and energy cost rises will weigh on all businesses – and our sector will continue to be as competitive as ever,” he said.
“In spite of this, we are confident that our business model is robust and we will continue to maximise opportunities as and where they present themselves.”
