Central Co-op enters festive season with confidence

Posted by lauryn mellor | Published: 08/11/2024

As a Society owned by its Members, Central Co-op remains committed to supporting its customers and Members. Whether visiting a convenience store for essentials, seeking help to arrange a funeral that feels just right for their needs, or getting involved in the Society’s rich programme of community activity that brings the co-op difference to life.

Over the past year, Central Co-op has been working across all areas of its business to review its strategy as part of a commitment to deliver on its purpose of creating a sustainable Society for all.

Central Co-op’s CEO Debbie Robinson, supported by her Executive team, has navigated a positive path for the Society during these challenging times, maintaining a focus on driving down the cost to serve customers and Members, and protecting and rewarding its colleagues.

This year, the Society has invested over £40m into its Food and Funeral business. By the end of the year, it will have opened five new stores, regenerated 35 stores and refurbished 16 funeral homes, bringing a modern, fresh look to many stores and an improved customer experience across the business. Central Co-op has also continued to invest in reward for its colleagues, Member pricing, and improving the offer to Members and customers to deliver sustainable growth.

With inflation impacting on food sales and death rates continuing to decline, trading profit is more challenging than in previous years.

After careful consideration, the Society has decided to sell 19 of its food stores, which have been financially unsustainable for some time. 16 stores will be transferred to Samy Limited - one of the UK’s leading independent retail operators of convenience forecourts and standalone stores, and a further three stores will be leased to B&M Retail Limited.

The Society is confident that affected colleagues will be provided with alternative employment opportunities, and that the communities and Members it serves will have access to a nearby Central Co-op store or another Co-op society store for their immediate needs.

Additionally, as part of this review, the Society has taken the decision to close six funeral homes which are financially unsustainable. In each case, the Society believes that the needs of its Members and customers would be better served by consolidating its local Funeral offer into nearby branches, which will then benefit from further investment in the future. The Society is pleased that all Funeral colleagues will relocate to neighbouring homes.

Debbie Robinson, Chief Executive at Central Co-op, comments: “We’re committed to putting the welfare of our colleagues first when making these tough choices. Any decision to sell or close our stores follows an extensive period of careful appraisal, and enables the Society to redirect resources into future growth and further improvements across the business for our Members, customers and colleagues.”

Despite these strong economic headwinds which impact performance, the Society has launched a number of new initiatives that bring its co-op difference to life for its Members, colleagues, and across the communities it serves, including:

• Becoming a founder member of a new International Co-operative Development Fund that will launch in December. This innovative and ambitious project which will see co-op to co-op support through both aid and trade as part of a co-operative commitment to international development.
• Continued support for the co-op economy through the innovative Our Malawi Partnership, which strengthens trade and education through co-op to co-op support. Sales from this Partnership have now surpassed £500,000 and momentum is gathering as other co-op societies stock products from the partnership - including the UK’s first 100% Fairtrade-certified macadamia nut products, sourced through the partnership.
• Working closely with other co-op societies to successfully lobby the government to bring about a change in law around the assault of a shopworker.
• Investing more than £700,000 in defibrillators and bleed kits, available across its store network to support communities and customers at times of need.
• 15,000 Society Members voted for Samaritans as its new charity partner in 2024.
• Support for urgent Humanitarian Appeal for the Middle East via the DEC Appeal.
• Increased the minimum hourly rate to £12.00 for front-line colleagues working in stores.

For more information on Central Co-op initiatives and activities, head to centralcoop.co.uk/ or visit socials. Details on becoming a Member can be found at Members.coop.

ENDS

For press information, including further details on Society stores or branches that are subject to closure or sale, contact:

Press Office
pressoffice@centralcoop.co.uk

Lauryn Mellor, PR and Media Specialist at Central Co-op
lauryn.mellor@centralcoop.co.uk