The retailer said it surpassed expectations with substantial membership growth, now reaching 5 million active member-owners.
Co-op supported colleagues, members and communities through cost-of-living crisis, with £70m in 2023, annualised to £90m investment in lowering food prices and improved member-owner offers.
All business units delivered underlying revenue increases in the year.
Enabled by business confidence and balance sheet strength, Co-op invested in lowering food prices for members, helping to drive medium term growth.
Underlying operating profit increased by £14m, or 17%. This figure was particularly significant given prior year includes earnings from the petrol forecourt business disposed of in 2022.
Food revenue marginally down at £7.3bn (2022: £7.8bn), driven primarily by the sale of the petrol forecourt business.
Revenue was up 4.3% or £0.3bn (2022 £7.0bn), excluding the impact of the petrol forecourt sale.
The Co-op. Food store photography. 31st July 2023. ©Victor De Jesus
Food underlying operating profit increased 11% year-on-year to £154m (2022: £139m).
Matt Hood managing director, Co-op Food, said: “Our incredible colleagues have delivered a robust set of results for 2023. Together, we’ve been delivering our Pure Convenience strategy that focused our efforts on getting our value and range right for our target customers, reaching more of them in capital-light ways, and rewarding their loyalty to us.
“We’ve invested £90m (annualised) to lower our food prices, which we believe to be the biggest price investment of any convenience retailer.
“Through this, our member-owners are rewarded through exclusive prices and promotions.
“Our growth plans continue through our routes to market as we expand our e-commerce proposition at pace and open Co-op owned stores in a way that complements our plans to expand our franchise operations. This demonstrates our ambition to lead the convenience market.
“We have become a more profitable, growth-focused business and, with that strength, we’re able to give value back to our member-owners, which we’ll continue to do in 2024 and beyond.
“The headwinds facing the grocery market in 2023 presented a challenging backdrop for all retailers. Grocery inflation was in double digits for 10 of the 13 periods of 2023, ending the year with inflation at +6.7%, and whilst this was its lowest level since April 2022, it was on top of +14.4% in the same period last year.
“Rainfall levels for almost every month of 2023 were far ahead of seasonal averages, and temperatures were lower than average in key summer months. This particularly impacted shopper footfall which made for difficult trading conditions for convenience retailers.
“Despite this, with our focus on price, driving volume and frequency through our value and reach as detailed below, we achieved full year revenue of £7.3bn (2022: £7.8bn).
“The decrease can be attributed to the sale of our petrol forecourt estate in 2022 with the associated inorganic reduction in food retail sales of £0.8bn.
“Excluding this impact, core food retail sales have grown 4.3% or £0.3bn.”
