December 2017

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SOCIETY RESULTS
Independent retail co-ops release trading figures in “challenging” period
Chelmsford Star Co-operative has
recorded a year on year growth in sales of
7.4% in its interim report for the 28 weeks
to 12 August 2017.
Trading surplus before depreciation
was £1.5m, down slightly from £1.6m
for the same period last year, but gross
takings were £59m, up from £55m.
The report said: “Overall trading
performance is beginning to show
signs of growth after a number of
challenging years.”
The food business, including fuel,
saw a year on year decline in trading
profitability but the report says the result
is 5.4% ahead of the business plan.
Department stores saw a year on year
decline of 4.3% in sales. and the business
continues to review its operation.”
At Travel, turnover was up 11.8%. but
the main driver of growth is currency,a
lower margin product, affecting trading
profitability, down 11.3% on last year.
The funeral arm has faced growing
competition, with sales 14.7% down
on last year, and trading profit
has fallen by £112,000 or 51.4%,
“well below the level envisaged within the
business plan”.
A strategic review of the business will be
implemented later this year, says the report.
But food core categories, fuel, travel
and investment property are delivering
growth, the report adds, with gross profit
of £12.9m compared to £12m last year,
representing growth of 6.6%.
p Chelmsford Star’s Quadrant store
p Lincolnshire saw “strong” food sales
Lincolnshire Co-op reported “a strong
trading year” in its annual results, but
said its trading surplus was down £4m
after cuts to its NHS pharmacy income.
The report for the year to 2 September
2017 said competition has been “intense”
but total sales had risen 3.5% to £312m,
(2016: £301m) with an expanded market
share and customer base.
Trading surplus fell to £16m (2016:
£20m), “due primarily to NHS cuts
to pharmacy income but also our
development work, pension costs and the
new dividend card roll out”. Turnover was
£287m (2016: £278m) and gross profit was
£94m (2016: £93.9m).
The society signed up 28,181 new
members over the year, said the report,
and membership now stands at 286,661.
Food stores enjoyed “another year of
strong growth with sales up 6.8%, helped
by an increase in customer numbers and
average basket spend,” said the report.
At the society’s Post Offices, “income
continues to fall but we have supported
this service with some transformation
monies received from the Post Office”.
The travel business saw sales rise 10%
with an increase in customer numbers
and booking values.
In the society’s pharmacies, “the
predicted cuts to NHS Pharmacy income,
together with a further significant cut in
July 2017, depressed income severely.
The funeral division reported growth
in client numbers and funeral plan sales
and the major refurbishment of premises
in Grimsby and Gainsborough. Two new
Funeral Homes were opened in Coningsby
and in Market Rasen.
Midcounties Co-operative announced
“strong progress” in its interim results for
the six months to 29 July, with gross sales
up 16% to £747.2m.
Operating profit before significant items
was £5.4m, up from £5.3m for the same
period last year.
The society reported a strong
performance in food despite “difficult
trading conditions” with like-for-like sales
up 2.3% on last year and convenience
trading up 3.5%.
Developments include a new
convenience store in Rissington, Gloucs.,
while a new supermarket in Bourton-onthe-Water
is due to open later this year.
At travel, gross sales rose almost 9% on
last year, with foreign currency sales up
12%. Midcounties says it is improving its
online service, revamping store and is set
to launch a Business Travel arm.
The Energy division took on customers
from failed supplier GB Energy at the end
of last year, through Ofgem’s Supplier of
Last Resort mechanism. The acquisition
takes our customer numbers to 390,000
and our half-year sales to £210m.
The Pharmacy division has suffered due
to government funding cuts but a new
Patient Medication Record has improved
efficiency and services, says the report. A
new web platform will be launched later
this year, combining all its online services
in one place.
Funerals had a strong first half of the
year, conducting 3,838 funerals, a year-on
year increase of 3.6%.
The society is rebranding its Childcare
arm, which recently acquired First Steps
nurseries, and all its nurseries continue to
be rated Ofsted Outstanding or Good.
p Midcounties saw a slight profit increase
DECEMBER 2017 | 5