Despite a disappointing summer, Scotmid Cooperative has achieved a £2.1m trading profit for the 26 weeks ended 27 July 2024, a £0.6m improvement on the interim result for 2023. Turnover rose up £2m to £214m in the same period, according to the firm’s 2024 interim report.
The report claimed that the poor weather had reduced customer visits to food stores, and volumes were also down in the period, reflecting the impact of the cost-of-living crisis.
Proactive availability management continued to be a key focus in order to combat several issues within the supply chain, including restrictions on volumes in ambient categories, stated the report. An everyday value pricing initiative was introduced in the second quarter to help alleviate volume pressure, focusing on key family meal staples like fresh meat and produce.
Further challenges came from high interest rates and wage increases, which are the food division’s largest cost area.
To help control costs and hedge exposure, Scotmid worked on energy reduction initiatives and invested in technology, including the launch of a new range and space planning system across all food stores, enhancement of Electronic Shelf Edges Labels, and the roll out of new chip and pin devices. The group also invested in refit and refrigeration works and implemented food to go upgrades at 19 stores.
Chief Executive of Scotmid Co-op, Karen Scott, who recently took over from John Brodie, said: “With difficult economic conditions, the first half of the year was challenging. However, tight cost control, utilisation of technology and a focus on pleasing our customers has allowed us to deliver a result ahead of last year.
“The challenges facing the Society continue to have a significant impact on consumer spending and, hence, trading performance. The headwinds of the cost-of-living crisis and high interest rates had impacts, but the biggest single factor affecting the interim results was undoubtedly the exceptionally wet summer weather. Despite this, Scotmid showed resilience, delivering growth in trading profit underpinned by a strong balance sheet.”
She added: “August also saw the retirement of my predecessor, John Brodie, after 30 years with the Society and 20 as Chief Executive. I would like to note my thanks for his dedication to Scotmid and leadership of our team over the years. His legacy will live on as we remain focused on continuous improvement and, of course, our core purpose of serving our communities and improving people’s everyday lives.”
