The Co-op has achieved a notable financial recovery in 2024 after enduring a loss of £33 million the previous year.
- The company’s profit before tax surged by £91 million, reaching £58 million, primarily due to reduced interest payments and non-underlying charges.
- Co-op’s food business showed a significant increase in sales, with a 3.2% rise, complemented by a 62% growth in quick commerce sales.
- The organisation’s membership strategy has seen a marked increase, with active member owners growing by 20% to 5.5 million.
- Co-op plans to expand its retail footprint by opening 120 new stores by the end of 2025.
In a remarkable financial turnaround, Co-op has reported a profit before tax of £58 million for the first half of 2024, reversing a £33 million loss from the previous year. The increase in profitability was attributed to lower interest payments and a reduction in non-underlying charges, which contributed significantly to the £91 million rise in profits. This reflects the underlying strength of Co-op’s strategy amidst challenging economic conditions.
The company experienced a 3.2% growth in its food business sales, a notable achievement given the competitive market landscape. Additionally, Co-op’s quick commerce sales saw an impressive escalation of 62%, reaching £217 million, underscoring its dominance in the quick commerce sector through partnerships with Deliveroo, Just Eat, and Uber Eats.
CEO Shirine Khoury-Haq expressed satisfaction with Co-op’s performance, highlighting the momentum gained by their strategic initiatives. She stated: “We have delivered a strong performance for the first six months of this year as our strategy starts to gain real momentum… it is testament to the underlying strength of our Co-op that we have outperformed in all our markets.”
Membership growth has been a focal point for Co-op, with active member owners increasing by 20% to 5.5 million. The enrolment of new members aged 25 and under surged by 79%, bringing the total member penetration in food stores to 36%. This positions Co-op well on its trajectory to achieve 8 million members by 2030, demonstrating the effectiveness of its engagement strategy.
Looking to the future, Co-op has announced plans to open 120 new stores by the end of 2025, spanning both retail and franchise operations. This expansion is supported by a robust balance sheet and a clear strategic vision, alongside significant investments totalling £130 million to support colleagues, members, and communities. These investments include £48 million in colleague pay, £18 million in colleague discounts, £55 million in lower food prices and member offers, and £9 million in community support.
Co-op’s strong financial performance and strategic growth initiatives exemplify its resilience and adaptability in a challenging retail environment.
