The Co-operative Group has revealed a significant increase in the impact of shoplifting, with the cost of crime in its stores soaring by almost a fifth to £40 million in the first half of this year alone. The member-owned mutual has allocated £18 million towards implementing measures to safeguard its staff in the food business, such as deploying body-worn cameras and fortified kiosks. Despite these efforts, theft and fraud in its shops incurred losses of £39.5 million in the first half, reflecting a 19% surge compared to the previous year. The company also witnessed a rise in attacks on its employees, with four colleagues being assaulted every day, marking a 34% increase from 2022, and a further 115 experiencing serious abuse, showing a 37% rise over two years.
Matt Hood, the managing director of Co-op Food, highlighted the ongoing challenges despite the investments made to enhance safety. He emphasized the effectiveness of these investments in making colleagues feel safer. Co-op’s chief executive, Shirine Khoury-Haq, expressed satisfaction that the government plans to introduce legislation to classify shoplifting as a distinct offence, stressing the need for swift implementation. This announcement coincided with the company’s report of returning to profitability in the first half of 2024, achieving pre-tax profits of £58 million compared to losses of £33 million a year ago.
The retail-to-funerals business indicated growth in food sales by 3.2% across its retail outlets, supported by a 10% increase in underlying earnings to £85 million, attributed to a 20% expansion in its membership base to 5.5 million. Despite a £39 million rise in wage costs due to adjustments matching the national living wage hike, Co-op remains optimistic about its future prospects. The company’s commitment to investing £55 million in pricing alongside its focus on reaching eight million members by 2030 suggests a positive outlook for expansion.
The Co-operative Group announced plans to open 120 new retail stores by the end of the next year throughout the UK. Khoury-Haq underscored the group’s readiness to consider acquisitions as part of their growth strategy, affirming a sense of optimism and preparedness for potential opportunities. By demonstrating sustained financial performance amid challenges in the retail sector, the Co-operative Group aims to strengthen its market presence and fiscal stability, positioning itself for future growth and success in the industry.