Co-op sees surge in online retail revenues

Amidst mixed financial results for the UK Co-op, it saw online grocery sales grow strongly to £200 million in the financial year to 1 January 2022, up from £70 million the year before.

Co-op offers deliveries through its own website as well as through delivery partners such as Deliveroo and Starship Technologies. It is also planning to expend its grocery offering through Amazon Prime. Currently the retail chain offers delivery from 1,600 shops in more than 450 towns and cities.

The news comes as the Co-op reported a slight fall in revenues across all of its businesses, which were £11.2 billion, down from £11.5bn the year before. Food and wholesale saw a drop in overall revenues of £200 million to £9.1 billion, which was still higher than 2019’s £8.9bn.

Pre-tax profits of £57m were down £70m on the £127m reported last year, and £33m higher than the £24m reported in pre-pandemic 2019.

Shirine Khoury-Haq, interim chief executive at the Co-op, says: “The Co-op is a business designed for the long term and that is the path we are on. The last year has seen us facing some significant challenges, including significant supply chain issues in the second half coming at the same time as our Food business transformation and increasing inflationary pressures. The difficult operating environment disproportionately impacted our Food business, given its focus on the community convenience market, with an operating model that is more reliant on flexibility in the supply chain.

“The Co-op remains uniquely positioned. We continue to be driven by our vision of co-operating for a fairer world and have a platform of businesses in the right markets to drive change, and get closer to our members, customers and communities. The significant investment we have made across our business in recent years now provides the basis for us to move forwards in a more efficient manner.”

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