26 September 2016 - Janet Bird
The Co-op Group has revealed that its pre-tax profits fell by more than half in the first half of this year.
Pre-tax profits fell by 53 percent in the six months to July 2, coming in at £17 million compared to £36 million during the same period last year.
Despite this, Co-op insists it is on track with its three year turnaround plan.
It cited investment in its stores, pay rises for frontline staff, a major rebranding exercise and pressure to keep up with the price cutting of other supermarkets as among the reasons for the fall in profits.
While last month the Co-op Bank revealed a first half loss of £177 million, down from £204 million, the Group's overall revenue showed a 2.2 percent increase to £4.7 billion. Like for like food sales rose 3.1 percent and convenience store sales went up 4.3 percent.
The Co-op is also just about to roll out a new loyalty scheme which will allow its five million customers to get five percent off all own-brand purchases using their membership cards.
Members spending £20 a week on own-brand groceries will earn £52 in rewards and give £10.40 to charities a year.