Co-op, which runs Britain's seventh-biggest supermarket chain, has today posted a steep drop in annual pretax profit following the sale of its petrol forecourt business, and amid growing competition among retailers.
The 180-year-old group, which is owned by its more than 5 million members, has been grappling with intense competition from discounters Aldi and Lidl and market leaders Tesco and Sainsbury's, along with a surge in shoplifting, which has pushed up costs.
It ended 2023 with a grocery market share of 5.4%, according to researcher Kantar, down 20 basis points on the year.
Co-op also committed to investing millions of pounds to prevent price rises at the cost of profitability.
The company, which also has funerals, insurance and legal businesses, reported profit before tax of £28m for 2023, compared with £268m during the preceding year.
Co-op sold its petrol forecourt estate to supermarket rival Asda for more than £600m in 2022. Excluding the business, profit was up £79m for the year, it said.
Group revenue dropped by £200m to £11.3 billion.
"Over the last two years, our net debt has reduced by 90% from over £900m to £82m today. Whilst markets remain challenging, we are firmly in control of our Co-op and our destiny," CEO Shirine Khoury-Haq said in a statement today.
