Co-op returns to profit – London Business News | Londonlovesbusiness.com

In the first six months of the year, the Co-op has posted profits of £58 million compared to £33 million of losses the year before.

The retailer posted profits despite the spiralling costs of shoplifting and soaring wage bills.

Food sales climbed to 3.2% which helped underlying earnings to rise to £85 million, but the Co-op was hit by fraud and theft of £39.5 million which was 19% from the previous year.

The food department of the retailer took a £39 million hit due to April’s 9.8% rise of the National Living Wage.

Shirine Khoury-Haq, chief executive of the Co-op, said, “Although the external environment remains challenging, it is testament to the underlying strength of our Co-op that we have outperformed in all our markets while significantly increasing our investments in our colleagues, pricing and in the growth of our businesses.

“While there is much more for us to achieve, we are on track to reach our goal of eight million Co-op member owners by 2030.”