Co-op see losses widen - but says sales recovering

The Co-op has revealed widened half year losses following a tumultuous start to the year and tougher trading.

The mutual reported underlying operating losses of £45 million for the six months to July 4 against losses of £32 million a year ago, when it was hit by a cyberattack that sent it plunging into the red.

Bosses say its latest half-year figures were impacted by weak consumer confidence and £78 million in extra costs, including increased labour taxes, as sales rose 2.4 per cent across the group, which runs more than 2300 food stores and 800 funeral homes across the UK.

Food store sales lifted 2.6 per cent, but the figure compares against a year earlier when a hack in April 2025 knocked first half revenues by £206 million and delivered an £80 million blow to profits.

The mutual is pushing ahead with plans to cut £200 million this year in order to offset higher costs and secure its long-term financial stability.

Interim chief executive Kate Allum, who took the reins at the end of March following a management shake-up, said: “The first half was characterised by difficult markets and low consumer confidence, especially for food retail.

“Against those conditions, we made decisions to drive trade – investing in promotions and investing in our stores – while also mitigating rising costs.

“These things have had a short-term impact on profitability.”

However, she said trading was turning around, with shoppers spending more and visiting its food stores more frequently.

She added: “Conditions remain challenging, but we see reasons for confidence across our portfolio, having delivered strong growth in areas such as online convenience shopping and funerals.

“We expect to see a stronger performance in the second half than the first.”

Earlier this month, it was revealed the group’s planned takeover of rival Southern Co-op could face a full-scale investigation by the Competition and Markets Authority.

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