Scotmid Co-op has reported strong results in their 160th anniversary year.
Trading profit has increased by 5.6 percent to reach 5.6 million for the year ended 25 January 2020, compared to £5.3 million last year. Turnover increased by £7 million to £385 million in the same period.
The retailer said the positive results are “pleasing” given the “very unfavourable” market conditions.
“This was achieved in a year dominated by Brexit uncertainty and without the benefit of the exceptional summer that boosted sales in 2018,” said John Brodie, chief executive of Scotmid Co-op.
Food convenience business was the major driver of growth, delivering consistently strong like-for-like sales despite significant cost increases.
“Last year I highlighted the cumulative burden of costs and the need to focus on innovation, effective investment and tight control of costs to continue to make progress. Once again the Society has delivered despite the Brexit saga and another challenging year for retailers generally,” Brodie added.
Scotmid’s funeral and property businesses finished the year strongly. The retailer said background market conditions for Semichem continued to be poor, but it has taken actions which helped it to deliver an underlying result ahead of last year.
The consumer co-operative has invested record sums in community grants and raised £325,000 for its charity of the year, Chest Heart & Stroke Scotland.
“Our co-operative and community development activity in the year was focussed on celebrating 160 years as a successful and thriving co-operative business. We finished the celebration year with a world record breaking Burns Supper,” Brodie said.
He added that the retailer is mindful of the growing cost challenge and the uncertainty around global events, particularly the COVID-19 pandemic.
“In the short-term we must manage the significant issues arising from the virus outbreak, however, I am sure everyone in the Society will rise to the challenge,” he said. “Overall it is our continuous improvement philosophy and our core purpose (to serve our communities and improve people’s everyday lives) that will continue to be our guide for the future.”