Co-op’s food sales fall back on last year but up on pre-pandemic levels

The Co-op’s food turnover in the period was £3.6bn, against £3.7bn last year and £3.4bn in 2019.

Online sales were made available in 1,000 more Co-op stores, which meant that in the first half of 2021 total online food sales were approximately five times more than those in the first half of 2020.

The group aims to have an online offer in 1,600 stores by the end of the year with 80% of the UK population covered by click and collect and 60% covered by home delivery.

After its £56m pre-tax operating profit in the first half of 2020 the group recorded an operating loss of £15m this year – compared to a £11m loss in 2019.

The statement said that these losses were due to “planned investment in our colleagues and our business as well as significant costs, impacts on sales and profit erosion related to product availability issues and the ongoing effects of Covid”.

The Co-op also warned that “unplanned supply chain challenges and and ongoing Covid costs will bring greater levels of uncertainty” in the second half of the year.

Steve Murrells, chief executive of the Co-op, said: “As we continue to experience the effects of the Covid-19 crisis, it is clear that things will never be the same again.

“As a business and as a society, it is crucial that we learn from the last 18 months, particularly as we turn to the momentous task of rebuilding Britain and face into the continuing disruption to our business and our supply chains.

“I’d like to thank our 62,000 colleagues for everything they’ve done during this time.

“Despite the challenges that the pandemic has presented to us, we have adapted to become more efficient and agile, which has allowed us to continue to feed and care for the nation throughout the crisis.

“Whilst our commercial performance has been impacted by Covid-19 and Brexit headwinds, we have responded magnificently to support our colleagues, members, customers and communities throughout.

“Covid has reinforced the fact that our vision, ‘Co-operating for a Fairer World,’ has never been more relevant, as well as showing us the areas in which we need to move quicker.

“As we look ahead, we will continue to advocate the power of co-operation so that as we emerge from this crisis, we are able to empower and lift people up with us.”