The Co-op says the work it has done over the last few years to offset costs and strengthen its balance sheet means it is ready to “stand and fight” in any potential price war.
Speaking after the c-store specialist reported soaring profits and revenues for the 2024 financial year this morning, chief financial officer Rachel Izzard said the hard work the business had done over the last few years on its balance sheet put it in a strong position to weather any coming storms in 2025.
“We successfully offset more than £200m in 2023 and 2024 of headwinds and investments,” Izzard said. “You’re not going to get any business saying they don’t believe that those headwinds will continue into 2025.
“That’s across national insurance, aross extended producer regulations and that wider cost inflation environment. But we successfully leaned into them last year and the year before, and we’ll continue to successfully lean into them going forward.
“As a consumer-led Co-op, we don’t need to be concerned about quarterly earnings, about quarterly share prices. We’ve got the balance sheet strength and the different business model to keep making the right decisions for the medium to longer term.
“We can deploy our balance sheet intentionally to stand and fight and really make the difference in the medium to longer term for what matters for our member-owners”.
Over 100 new stores
The Co-op also said it planned to open at least 120 new stores in 2025, even as it warned the government that “layering costs” on to retailers could hit high streets.
The retailer also said it is introducing new technologies such as shelf-edge pricing and will continue to focus on expanding its rapid online grocery deliveries to help offset growing labour costs.
Co-op group chief executive Shirine Khoury-Haq said: “We understand the government has a tough job but it should look at the layering of costs on the industry, so it doesn’t tip over the balance and impact high streets.”
She also urged ministers to do more to protect smaller businesses from soaring business rates and retail crime, and costs such as increases in national insurance payments and new recycling schemes that “stack and layer on smaller businesses”.
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