Economy‘biting deep’, says Co-op boss | Industry News | TalkingRetail.com

The downturn in the economy is“clearly biting deeper than expected”, according to Peter Marks, group chief executive at The Co-operative Group.

The group has released its preliminary results today for the 52 weeks ending 1 January 2011, which revealed:

• Sales up 4.8% to£7.5bn.
• Operating profit before significant items up 33.3% to£382.6m. 
• A further 524 stores were refitted and by April 2011 all stores will be operating under the Co-operative brand.
• 350 more stores planned by 2013 creating around 7,000 jobs.
• £70m planned investment this year in food logistics network.
• 350 new products launched in 2010 and 50 more to be added to premium TI range this year.

Foundations have also been laid for the launch of Ethical Operating Plan, positioning the Co-operative Group as the UK’s “most responsible business”. The plan sets out ambitious new targets and heralds a new era for sustainable development both in business, and beyond – seeking to improve its performance while encouraging customers and members to take action and campaign to influence public policy.

Marks said:“Despite the difficult economic environment I am confident that we are well placed to meet the challenge. During 2011 we will still be a business in transition, however, all the work done over the past three years means we are in good shape to continue to weather the downturn and make the most ofopportunities when the economic situation improves.

“We will continue to set ourselves challenging, but achievable targets for both our business performance and our social goals because that is what our members ask for and expect. It is that drive and ambition for excellence that I believewill ensure our long-term success.

“Finally, this time last year I welcomed the interest being shown by all the mainstream political parties in our ownership model, and the potential they saw in co-operatives to drive improvements in the delivery of public sector services. Since then there has been a great deal of talk, but littleby way of action.

“What is now needed, to take ‘Big Society’ thinking from mere rhetoric to something tangible, is a ‘one-stop shop’ where those who want to set up a co-operative can meet the experts and actually make things happen. This is something we plan to launch this year. We are also committing to spend £11m to support the growth and development of co-operative businesses and schools in the UK. All of this gives me the confidence to say that we are firmly on the right path to meet our vision of creating a better society.”

Source: The Co-op

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