The Co-operative reports strong Christmas and New Year trading
The Co-operative Group, the UK’s largest mutual retailer, today (11 January) reports a strong Christmas and New Year trading performance in its food stores.
Like-for-like sales (including VAT and excluding fuel) increased by 5.0 per cent in the three-week festive trading period to 2 January, and by 4.8 per cent in the 12 weeks to 2 January. This is the sixteenth consecutive quarter of like-for-like sales growth. In the same 12 weeks, total year-on-year sales (inc. VAT, exc. fuel) grew by 66 per cent, boosted by the acquisition of Somerfield.
Peter Marks, Group Chief Executive, said: “These results represent another strong trading performance from our food business in an increasingly competitive market and a difficult economic climate. Against the backdrop of financial pressures on household budgets, rising fuel prices and extreme wintry conditions, our focus on great deals locally and the fact that our stores are located within communities, helped boost sales.
“Leading up to the seasonal trading period, we unveiled Christmas price cuts and a promotional package worth over £200 million in savings to our customers, including a first-ever triple Dividend. This was well received, and sales were up in both convenience and larger stores as we attracted more customers and existing customers increased their spend with us. Our successful brand launch earlier in the year, together with a significantly up-weighted seasonal advertising campaign, had a positive impact, reinforcing both our ethical credentials and our return as a major force in UK retailing.
“There were particularly strong performances in meat and poultry, chilled foods, beers, wines and spirits and confectionery, whilst we maintained our leading position on ethical trading.
"Our customers were determined to make the most of Christmas, despite the recession, but were savvy enough to seek out our best value prices on luxury items such as Champagne, with sales up by 83 per cent, spearheaded by Veuve Monnier Brut Champagne at only £12. At the same time, they took advantage of half-price offers on key seasonal lines, such as British pork roasting joints with a sales increase of 72 per cent.
“However, they didn’t abandon their ethics. For the first time this year, all Co-operative fresh and frozen turkeys were higher welfare Elmwood standard or above, yet sales saw a 21 per cent uplift. Fairtrade products also showed further excellent sales increases, building on their success last year. Sales of Fairtrade wines rose by 36 per cent, whilst sales of Fairtrade confectionery increased by 26 per cent.
“Elsewhere, the Group’s online electrical business (www.coopelectricalshop.co.uk) also enjoyed a successful festive trading period with sales over the three weeks to 2 January up by 18 per cent year on year. Combined sales for five key holiday days including Christmas Day and New Year's Day were up 46 per cent on 2008, reflecting the growing popularity of internet shopping. Big sellers included large screen LCD televisions and coffee machines.
“The success of Group businesses this Christmas is in no small part due to the outstanding efforts of our store and distribution teams, who all deserve a big thank you. They have gone out of their way to ensure products reached customers in some of the worst weather conditions in decades.
“Looking ahead, we expect the economic pressures to continue until towards the end of 2010 or the first half of 2011, so we will be redoubling our efforts to help customers by providing even greater value.”