The Heart of England Co-op saw its food sales surge 22% during the first six months of the year, as shoppers turned to local stores during lockdown, its half-year trading update reveals.
The society’s newest stores, including Rotherham Road in Coventry and Sketchley Brook in Hinckley, all recorded ”significant” increases ahead of budget in the six months to 13 June.
Its funeral division also saw a 16% like-for-like growth in sales, despite the average expenditure per funeral dropping, due to government restrictions leading to smaller or unattended funerals.
Overall, the retailer’s operating profit stood at £3.6m, a rise of 87% on the same period in 2019.
But the society’s CEO Ali Kurji warned of economic uncertainly ahead as the pandemic continues and the Brexit transition period comes to an end.
“The first half of the year was both unprecedented and challenging,” he said. “Never before had we experienced such a situation and the second half is proving equally challenging due to Covid-19, increased competition and Brexit.
“As government restrictions continue, the society is continuing to bolster its operations to ensure it continues to meet a market which is in an ever-increasing state of flux.
“The Heart of England Co-op remains in a very strong position, both operationally and financially. We have a robust operation with positive cash flow and reserves which we are able to draw upon for profitable projects.”
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