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Co-Op Group Posts Bigger H1 Loss as Investments Weigh
The retailer said promotions, store upgrades and £78 million in extra costs reduced profitability, while it expects a stronger second half.
- On Wednesday, Britain's Co-op Group reported underlying pre-tax losses of £92 million for the six months to July 4, despite achieving 2.4 per cent total sales growth across its operations.
- Weak consumer confidence and £78 million in additional costs, including higher labour taxes, weighed on profitability; statutory losses deepened to £86 million from £50 million a year earlier.
- Interim Chief Executive Kate Allum confirmed job cuts under a £200 million efficiency plan and addressed earlier reports of a "toxic" environment at the retailer, saying "We've been listening and doing and explaining."
- The group is pressing ahead with a planned takeover of rival Southern Co-op, expected to add 330,000 members and about 300 food, funeral and Starbucks sites to its existing business.
- Allum expects a stronger second-half performance, noting that "shoppers spending more and visiting its food stores more frequently" signals trading is turning around amid ongoing challenges.
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Co-op blames job cuts on Labour national insurance raid
Co-op group has slashed its headcount this year to handle the added costs of Labour’s national insurance raid, its chief executive has revealed, saying the tax hikes had pushed the retailer to invest in more automation. The group, which runs life insurance and funeral businesses as well as its grocery arm, said on Wednesday that [...]
·London, United Kingdom
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Coverage Details
Total News Sources21
Leaning Left3Leaning Right1Center7Last UpdatedBias Distribution64% Center
Bias Distribution
- 64% of the sources are Center
64% Center
L 27%
C 64%
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