The Co-operative Group has reported bumper half-year results and a sixth successive quarter of like-for-like growth for the last trading period before its merger with United Co-operatives.

Guy McCracken, head of food retail for the society, said that despite poor weather, total like-for-like sales for the half-year to 28 July were up 5.2%, with like-for-likes in its c-stores up 7.8%. Profit in its food division rose 16.9% to £64.4m during the period on sales up 4.6% at £1.7bn.

Figures were boosted by an increase in the number of transactions to about 12 million a week and an increase in average basket size. Sales of the society's Healthy Living brand, relaunched in January, were up 75% year-on-year. Sales of its revamped premium range Truly Irresistible were up 150% year-on-year and Fairtrade lines were up 40%.

"Following the merger with United on 29 July, we are definitely in front-foot mode and want to play to our strengths with good availability and a strong offer," said McCracken.

"We are determined to be a real, quality proposition in convenience retailing. We have a depth of products that we simply didn't have two years ago and our results show that customers are coming to us."

Store refurbishments would also be accelerated next year, McCracken said. As well as installing The Co-operative fascia, lower shelving would be introduced, along with environmentally friendly refrigeration and more in-store signage to highlight the society's ethical principles and green initiatives. Some 115 stores were revamped in the first half and a further 250 would be refitted by the end of this year. Stores converted to the new fascia were already benefiting from a 15% sales uplift, he claimed.

The Alldays fascia, which the Co-operative Group acquired in October 2002, would also disappear by the end of next year. Of the 405 Alldays stores in the Co-op's estate, 333 had been refitted so far and the remainder would be completed by the end of 2008.

Next week the society will launch a campaign to get behind British meat, highlighting the provenance of its meat products with UK, Scotland and Wales flags on products.

Topics