The Co-operative has turned in record results for the year to January 2 as the group reaps the benefit of its acquisition of the Somerfield supermarket chain.
Group sales rose 31% to £13.7bn and profits before payments to members rose by 85% to £402m, according to the annual results announced today. The dividend paid to customers was up 185 at £55m.
The acquisition of Somerfield made the Co-op the fifth largest food retailer. The food business increased sales by 66% from £4.5bn to £7.5bn, with trading profits up 31% to £286m. Like-for-like sales were described as a healthy 5.5% up on a year-on-year basis.
The Co-op now operates 3,000 local community stores and each week they serve 21 million customers.
The focus is “very much” on the convenience store sector, but the aim is also to become the market leader in the small supermarket sector, just as it is in the c-store market.
Peter Marks, group chief executive, said: “These are record results in what has been an historic year for The Co-operative Group.
“Our business has continued to thrive in spite of economic pressure, and I am pleased to report that we are on track with the integration of both Somerfield and Britannia. And, it seems, our business model has never been quite so relevant!
“Whilst we have expanded and evolved as an organisation, we have stayed true to our core principles and we continue to do what we do best: serving customers with excellent products and services, and bringing solid values and trust to the communities in which we operate.
“Our food business continues to go from strength to strength following the acquisition of Somerfield. That means that we are the retailer best placed to deliver great savings to customers, without the need to travel to big superstores. This was exemplified in our Great Deal Locally campaign and over £200m of price cuts and deals over Christmas, which helped customers buy what they actually needed.
“Looking ahead, we expect the economic pressures to continue until the end of this year or the first half of 2011. Sustaining the level of success we have enjoyed over recent years will not be easy.
“All of our businesses are operating in fiercely competitive markets which will only get tougher, so we will be redoubling our efforts to help our customers by providing even greater value and service.”
