Profits soar at Co-op following Somerfield and Britannia mergers

The Co-operative Group has posted a 20% increase in operating profit for the year ending 2 January, boosted by the acquisition of Somerfield.

Co-op

Total sales were up 31% to £13.7bn, while like-for-like food sales, which exclude new stores, were up 5.5% on the previous year.

It says overall profit before payments to members jumped 85% to £402m during the year.

The Co-op took over the Somerfield chain in 2008 and merged its financial services business with Britannia last year.

It has seen a 38% rise in the uptake of new current accounts at its banking arm as the business benefits from falling confidence in high street banks.

Despite the “record” results, the Co-op chief executive Peter Marks remains cautious and expects “economic pressures to continue until the end of this year or the first half of 2011”.

In January, The Co-op restructured its marketing department in a reshuffle that saw its existing buying and marketing teams in its food business placed under a single leadership and axed the role of director of food marketing.

The group said at the time that it would shift away from corporate brand marketing towards operational and commercial activity within each of the Co-op’s major businesses: Food, Pharmacy, Travel, Bank, Legal Services, Funeral care and Insurance.

The group also revealed a 14-strong creative agency roster, following an extensive agency review. It appointed TBWA Manchester as its lead agency along with a number of regional agencies located in the North West, where The Co-op is based.

The Co-op is currently reviewing its media agencies

Latest from Marketing Week

Tesco, M&S, Just Eat: 5 things that mattered this week and why

m&s

M&S chief outlines digital-first strategy after profits plummet Marks & Spencer (M&S) is gearing up for a digital-first future, after its revealed on Wednesday (23 May) that profits had dropped a massive 62.1% to £66.8m compared to the previous year. A day earlier, the struggling retailer confirmed it will close more than 100 stores over […]

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here