The Co-op Group has reported a significant drop in profits over the past year, as it faced challenges from food inflation, rainy weather affecting convenience shopping, and record levels of shoplifting. The company, which operates in both retail and funeral services, invested millions to lower prices amidst increasing competition among supermarkets . It revealed that its pre-tax profit fell by £240million to £28million in 2023, compared with 2022. However, Co-op explained that the profit figure for 2022 was inflated due to the sale of its petrol forecourts business to Asda . The two supermarket giants had agreed on a £600million deal to transfer its 132 petrol stations during the second half of the year. Despite these challenges, the group managed to reduce its net debt to £82million, down from £322million in 2022. It also reported that revenues dipped to £11.3billion in 2023, from £11.5billion the previous year. This decrease was partly due to its food retail division, where sales slipped to £7.3billion from £7.8billion the prior year, a decline also attributed to the impact of selling its petrol stations. With grocery inflation reaching double digits for most of 2023, and the
UK experiencing much rainier weather, fewer shoppers visited convenience stores. To stay competitive, Co-op invested £90million throughout the year to lower its food prices, including discounted prices and offers for its members. Co-op has reported a surge in retail crime incidents across its food stores, with over 336,000 cases of shoplifting and anti-social behaviour recorded in 2023 - a 44% increase compared to the previous year. Despite these challenges, Co-op's chief executive, Shirine Khoury-Haq, highlighted the company's financial resilience, stating: "Our relentless focus on strengthening our financial position has enabled us to navigate a highly turbulent external landscape, delivering increased value for our member-owners and planning for a future with confidence and with membership firmly back at the heart of our business." Khoury-Haq further noted the company's significant debt reduction, stating: "Over the last two years, our net debt has reduced by 90% from over £900 million to £82 million today." The company's growth strategy involves expanding its convenience store network and growing its membership program.