In H1 2022, the Co-op experienced a slight decline in revenues, primarily due to lower revenue in the food retail business resulting from the petrol forecourt sale. Despite this, the Co-op has been able to offer additional support to members, communities, and colleagues in the face of the cost-of-living crisis while maintaining its focus on broader sustainability objectives. This is made possible by the Co-op’s enhanced financial strength.
The Co-op has made significant investments in the first half of the year, allocating £20m towards lower pricing on key products in food stores and the introduction of member exclusive pricing. Furthermore, an additional £70m investment has been announced in July.
To further support its colleagues and stakeholders, the Co-op has allocated £5m to extend its 30% colleague discount on Co-op branded products in food retail stores until the end of the year. Additionally, £4m has been assigned for winter support payments to colleagues during Q1.
Significantly, the Co-op has achieved a remarkable 55% growth in member acquisition, with almost half a million new member owners (430k) joining. This stands in stark contrast to H1 2022, which saw only 278k new members joining.
Shirine Khoury-Haq, Chief Executive of the Co-op, expressed pride in the company’s success over the last six months, particularly given the prevailing economic and market conditions. She attributed this performance to the early decisions made in 2022 regarding improved management of members’ funds and more efficient business operations.
Despite the ongoing economic challenges, the Co-op has further enhanced its underlying financial strength, significantly expanded its membership base, and continued to deliver value to its members and their communities.
Allan Leighton, Chair of the Co-op, commended the Co-op’s achievement in reducing its net debt to historically low levels despite the current high interest rates and borrowing costs. He expressed confidence in the Co-op’s ability to plan for future growth and the positive impact it can have on both the business and society.
Financial Highlights
Here is a visual representation of the Co-op’s financial results:
