Co-op posts profit dive

The Co-operative Group has revealed a 63 per cent slump in profits.

The grocery to banking company’s profits were badly affected by earnings at its grocery stores, which dropped by 39 per cent. Analysts blamed the expanding presence of Tesco and Sainsbury’s in the convenience store sector for the slide.

The fingers have also been pointing at poor availability and presentation of product in-store, as the Co-op failed to adapt fully to its trebling in size to 1,800 stores in the past four years.

Chief executive Martin Beaumont said: “While what we have done is strategically absolutely right we are paying the price for focusing on expansion.”