Co-op returns to profit despite hit from rising wages and shoplifting

The Co-operative Group has returned to a half-year profit despite a soaring wage bill and rising costs of shoplifting across its retail stores.

The retail-to-funerals business reported pre-tax profits of £58 million for the first six months of 2024, against losses of £33 million a year ago.

Food sales rose 3.2% across its retail stores, helping drive a 10% increase in underlying earnings at the division, to £85 million.

But it said it took a hit of £39.5 million from theft and fraud in its shops – up 19% on a year earlier – even as it ramped up campaigning on the issue.

The group’s food arm also saw its wage costs jump £39 million as it hiked pay to match April’s 9.8% rise in the National Living Wage.

Shirine Khoury-Haq, chief executive of the Co-op, said: “Although the external environment remains challenging, it is testament to the underlying strength of our Co-op that we have outperformed in all our markets while significantly increasing our investments in our colleagues, pricing and in the growth of our businesses.

“While there is much more for us to achieve, we are on track to reach our goal of eight million Co-op member owners by 2030.”