Co-op sales hit by winter chill

THE harsh weather in the run-up to Christmas hit sales at The Co-operative Group in the final quarter of 2010.

Peter Marks, chief executive of the Manchester-based mutual organisation described its trading performance in the run-up to Christmas as “solid” given the tougher trading climate and the severe weather conditions.

Like-for-like sales in its Trading Group (which includes store sales but not financial services) dropped by 0.6% in the 13 weeks to January 1.

Like-for-like sales of food were markedly lower, showing a 3.2% drop. The Co-Operative blamed this on both reduced footfall and changing spending patterns across its store network.

The Co-operative also said that an accelerated programme of conversions of former Somerfield stores to the Co-operative brand meant that 200 stores closed for an average period of around seven days each. Sales in its core convenience store network increased by 2%, though.

Like-for-like sales in its non-food business increased by 12.1%, fuelled by growth in its online electrical, motor and travel operations.

Mr Marks said: “We have delivered a solid trading performance across our retail businesses in a difficult environment.

“The exceptionally cold weather created logistical issues for our food stores – particularly given the sheer scale and geographic spread of our estate.

“Our people worked exceptionally hard to ensure that we provided a great service to all our customers – and the strong performance of our core convenience estate is a testament to all their efforts.”

He added that the strong performance of its non-food business, coupled with “excellent” progress in its financial services arm, meant that the Co-operative was set to announce another record set of results when it publishes its annual trading figures in March, and that the Somerfield store conversion programme will be completed in the Spring.