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The Co-op today reported booming sales and profits as it stepped up its assault on the big four supermarkets.
Same-store food sales leapt 7.3% in the first half of the year — better than those reported by Sainsbury's and Tesco earlier this month.
Revenues were up 27.1% to £6.4 billion and profits rose 17% to £228.8 million as the Co-op benefited from its £1.6 billion acquisition of Somerfield in March.
The revenues were still dwarfed by its larger rivals. Tesco sales topped £30 billion in the first half.
Co-operative Group chief executive Peter Marks said the firm was winning customers from its rivals due to the recession and the modernisation of its stores.
He also said distrust in big business in the wake of the financial crisis was attracting customers.
“There has been a massive fall off in trust in big plcs and we are a brand that people can trust,” said Marks. “We are known for our ethical values.”
Marks warned that “it would be naive to think that we are immune to the recession” but expressed hope the economy was on the road to recovery.
“We have certainly bottomed out but I don't see a V-shaped recovery, I see a U-shape,” he said.
“There are still troubled waters to get through.”
Reader views (1)
After the local Somerfield surpermarket brought in a few Co-Op branded items, I have been pleasantly surprised about the quality.... In my mind all the surpermarkets failed in the quality of fresh foods, with M&S has been good but expensive....
- W.L., London, 12/10/2009 19:11
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