Overall profits at the Co-operative group rose by 41 per cent to £327 million with the Co-operative Bank and food retail key drivers of its good fortunes. Profits rose 63 per cent on sales of £3bn in the food retail unit: up 17. 4 per cent on last year.
Welcome, the group’s c-store brand outperformed the market with like-for-like sales increasing by 3.4 per cent across the chain.
The group’s support for and promotion of Fairtrade goods has also been a wise one proving popular with shoppers.
But it is the c-store market that is seen as a priority and the group made continued investment in its portfolio in this arena refurbishing 218 stores at a capital expenditure of £35.4 million. The Co-op also acquired the Balfours c-store and newsagency chain for £331m.
Analysts suggest that the group’s ceo Martin Beaumont make now be weighing up entering the auction following last year’s Balfours move and the purchase of Alldays in 2002.
"We are making sustained progress in unlocking the potential within the Co-operative Group and the 41 per cent rise in profits for 2003 to 3327m demonstrates our success," said Beaumont. "We maintain a highly commercial approach to running our businesses to ensure that we maximise profitability for the benefit of our members while still upholding the core values of a co-operative organisation."
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