Midlands Co-op has announced trading profits for the year ending 24 January 2009 of £16.2m – up 7% on last year.
Sales rose by 6% to £848m, while like-for-like trading profit increased by 7% to £16.2m.
All the socieity’s core businesses – retail, travel, funeral, property and transport – reported an increase in sales.
The society adopted the Co-operative Group brand in January, following successful trials in a number of stores. A re-branding programme is taking place over the next two to three years.
Midlands Co-op also continued its expansion through merger, with Moulton Co-operative Society in January 2009 becoming the fourth transfer of a neighbouring Society in recent times.
The society’s positive operational cash flow increased to £47m. In the past twelve months more than £20m has been invested in the business, the group said.
Its convenience stores and community supermarkets benefited from an increase in local shopping, it added, resulting from a change in consumer behaviour driven by the current economic climate.
Food sales were also boosted over the Christmas period with a marketing package, including national TV and press advertising. It added: “While the society’s food offer has continued to emphasise quality, product provenance and convenience, a focus on cost control and efficiency has kept price increases in check, allowing us to compete effectively in a market now more price and value aware.”
The society bought two more retail stores were purchased, one at Dronfield Woodhouse, near Chesterfield and the other at Swanshurst Lane, Birmingham.
It also signed deals to buy four Somerfield stores, which are due to transfer to the Midlands Co-op next month (May 2009).
Tony Carroll, general manager for retail, said: “Considering the economic climate, we have had an exceptional year and have in fact outperformed last year’s results and our budget.
“The new model store refurbishments completed in the latter part of the year, and the adoption of the Co-operative brand, have already heralded excellent results and we can look forward to the future with a good degree of optimism.”
