Co-op profits up in tough retail climate

Monday 19 May 2014

The Channel Islands Co-operative Society has reported a solid trading year last year with profits slightly higher than 2012.

Turnover for 2013 was £160.4 million, a 0.49% increase over the previous year with food stores up 0.26%. This means that a dividend of £8.07 million will be shared by members across in both Bailiwicks.

Chief Executive Colin Macleod said that 2013 had been another difficult year for retail in the islands.

“Although there were green shoots of recovery towards the latter part of the year, factors such as high unemployment in Jersey particularly, meant consumer attitudes towards spending remained very cautious. If you combine that with the very competitive retail landscape that continued to develop over the last few years it is not an understatement to say that it has been another challenging environment for the society to operate in,” he said.

Mr Macleod said that despite these conditions the society was happy with its performance.

“We’ve worked very hard for every customer and every purchase as well as ensuring strategic plans are executed accurately and with careful consideration. We feel, despite the conditions we faced, the society has achieved that. This pleasing performance is down to some very hard work from our board, senior management and colleagues throughout the business,” he said.

In 2013, the society was awarded both Employer of the Year at the Awards for Achievement in Guernsey and Large Enterprise of the Year at the Jersey Enterprise Awards.

Last year saw a new Locale store at Sion, the acquisition of Argent Funeral Care in Guernsey and the purchase of a majority shareholding of Pharmacy Locale, which operates eight pharmacies across the islands.  Meanwhile, work is continuing on a further Locale store at Grouville in Jersey, with plans to open in early 2015. 

As a local business, the society continues its long association with local suppliers, supporting over 70 across the islands. Sponsorship included Variety’s Child of the Year competition and a community engagement project whereby society colleagues raised over £30,000 for their chosen charities and organisations.

The Co-operative continues to support many community and charitable organisations, including the Eco Fund and the long-running Helping Hands scheme. Many donations have helped a great number of local charities and community organisations including St John Ambulance, Jersey Association of Careers and Guernsey Guide Dogs for the Blind.