Co-op rebrand 2

The Co-op has seen sales growth

The Co-operative has posted its sixth consecutive quarter of growth as like-for-like sales grew by 3.1 per cent for the 26 weeks to 2 July 2016.

The retailer’s core convenience business also grew 4.3 per cent after investment in price and own brand products.

Meanwhile, revenue grew by 2.2 per cent to £4.7 billion as customer transactions grew by 3.3 per cent. The retailer said it had recorded a planned reduction in profit following continued 'Rebuild' investment, colleague pay increases and price cuts.

Group chief executive of the Co-op Richard Pennycook said: “Revenues across the group have grown and, in line with our strategy, profitability has fallen due to our major Rebuild investment, pay increases for our people and price cuts for our customers.

“This long-term approach is evidenced by the continued reshaping of our Food store portfolio to support our own-brand, convenience-led strategy. This means we can, as necessary, forgo sales growth in order to ensure we have the right stores in the right places for our customers.”

Pennycook said the retailer is still only half way through Rebuild and “much remains to be done”, from investing in digital capability to campaigning on key issues. :We remain firmly on track with our plans and are encouraged that the work we are doing is attracting more and more people back to the Co-op,” he added.

Allan Leighton, independent non-executive chair of the Co-op, said: “These results show that we are moving in the right direction – be that in going back to our roots with a return to an iconic brand, the launch of our new member offer or our partnership with the British Red Cross which has already raised £3 million.”