Coop members offered a 2% dividend this year
MEMBERS of the Channel Islands Coop are set to receive a 2% dividend this year, after the Coop responded to public alarm.
Three months ago the retailer warned that there may be a reduced dividend, or no dividend paid at all in 2024, blaming ‘difficult trading conditions’.
A 2% divi, worth some £3m., would be half of the amount paid to members for more than 40 years.
In February the Coop had warned of the possibility of reduced or even zero dividend, which angered many of its members. Some shareholders took the drastic step of withdrawing money from their customer accounts.
The Coop paid out nearly £5.5m. in dividend in each of 2022 and 2023.
Chairman Jon Bond announced yesterday that that the board were pleased to propose a 2% dividend, although this was still subject to approval at the Annual Members Meetings in May.
‘In proposing a 2% dividend,’ he said, ‘we have taken the time to thoroughly review what is in the best interests of our member owners and our ability to sustainably pay a dividend despite the impact of world events on our profits in the last year.’
The news came as the Coop published its annual report for 2024, which it described as one of its most challenging trading periods.
CEO Mark Cox, said the business recognised that the announcement earlier in the year regarding dividend payments had caused some concern.
‘However I am delighted that after a period of review we have been able to ensure we can make a payment to our member owners,’ he said.
‘I would like to record my thanks to all our member owners and colleagues for their understanding, loyalty, and continued commitment to our CI Coop.’
The dividend will now need to be ratified at members meetings in both Guernsey and Jersey later this month. If members reject the new dividend proposed, then no dividend would be paid at all.
The society has about 122,000 members across the Channel Islands and last year it paid them more than £5m. in dividends.
Although it picked up more new members in 2023 than in the previous year, overall membership fell by nearly 6,000 over the year.
Mr Cox said that members would benefit from exclusive member pricing and promotions across popular brands in future, but ‘the primary goal is to regain stronger financial performance, enabling us to appropriately reward our loyal members and customers’.
n The Guernsey members meeting takes place at the St Pierre Park Hotel on Tuesday 21 May at 6.30pm with Jersey’s held the following day.
