Scotmid Coop has reported a trading profit of £3m for the 52 weeks ending 28 January, down £2.7m on a year earlier, after the cost-of-living crisis and escalating business costs.
The retailer’s turnover stood at £406m for the year, an increase of £3m on the previous 52-week period.
The society said it has responded to this turbulent economic backdrop by reducing controllable costs, maximising sales opportunities, and strategic capital investment.
John Brodie, Chief Executive of Scotmid Co-op, said: “Our food convenience business faced the most significant challenges in the year. There were a number of factors that impacted performance including energy costs, food price inflation, pay rate growth, and low consumer confidence from the cost-of-living crisis.”
He added: “Last year-end, I highlighted the significant inflationary cost challenges facing the Society, but in reality, the background trading environment in 2022 was much more challenging than expected. The prolonged war in Ukraine, post-pandemic global demand, high UK inflation and, especially the rise in energy costs meant that both businesses and households have faced a cost-of-living crisis.
“Most of our business cost increases were mitigated, but the energy cost escalation could not be covered by initiatives, especially in an environment where sales growth was challenging.”
The retailer continues to deliver community-based funding and support through local community grants, its Community Connect scheme awards, and its Winter Giving campaign for food banks.
