Scotmid Co-op has reported an improved underlying performance for the 26 weeks to 1 August, as it recovers from disruption to its supply chain caused by last year’s cyber attack on the Co-op Group.
Turnover for the half year was £209m, with a trading profit of £1.2m. Like-for-like profit before tax rose £2m, from a loss of £1.8m in the comparative period to £0.2m.
Net assets rose £2.9m year on year to £128.3m, while net debt reduced during the period, with the society crediting the results to “continued financial discipline and the resilience provided by Scotmid’s balance sheet and diversified business model”.
The society says it focused on recovery and rebuilding customer confidence to drive footfall and transactions, contributing to the improved year-on-year performance, adding: “The strength and determination of Scotmid teams during this time was cited as having played a valuable role in achieving these results, which also enabled charity and community give-back to continue.”
“The first half of 2026 has delivered an improved underlying performance,” said CEO Karen Scott, (pictured),“supported by a more stable supply environment and the hard work of colleagues across the society.
“Customers are still managing real pressures on household budgets, so our focus remains firmly on value, convenience and serving our local communities well. Whilst we expect the second half to be challenging, our teams will continue to work hard to deliver value to our customers and members in a difficult retail environment.
“We have maintained financial discipline while continuing to invest in the areas that matter for the future: our stores, customer proposition, colleagues, technology, cyber resilience and sustainability. The strength of our balance sheet and the diversity of our businesses give us the flexibility to take a long-term view.”
The report highlights “tactical investment” in the co-op’s store estate, including the first new-format store in Uddingston, with a refreshed and expanded food-to-go range.
In Burghead, Scotmid points to a larger, more modern store environment with enhanced ranges and choice, following the much-anticipated relocation to a former church, converted by the society and keeping a number of internal and external features.
“We’re proud of our new store,” Scott told Co-op News. “We had a smaller store in the village which was very well supported, but the manager was keen to get a bigger premises.”
Noticing the church building was up for sale, the manager alerted the co-op which negotiated the purchase, moving into the revamped site two and half years later. We were visiting, she saw the church was up for sale.
Additional services, including parcel lockers, WashMe units and replacement ATMs were progressed to improve convenience for customers. Enhancement works were completed at core property assets in central Edinburgh and progress was made on a new member and customer app, which is set to launch in the coming weeks. This, said Scott, “will allow us to engage digitally, provide offers and communicate better”.
In Food, the society highlights “improved product availability bolstered customer basket spend, supported by a consistent focus on value through bundle deals, targeted promotions and strengthened local sourcing from a growing number of Scottish suppliers”.
“Our Scottish favourites is important to us,” Scott told Co-op News. “It gives our local suppliers access to market – and hopefully through being successful in local stores, they have the potential to go national.”
In terms of principle 6 – co-operation among co-ops – Scott added: “Co-ops are important, and we’re always open to conversations as to how we work better together, and to discussions with farming co-ops on routes to market.”
Semichem “continued to trade in a challenging market for discretionary retail”, the report adds. Scott noted that the division has launched its Christmas range, with a variety of items to suit all budgets, as the business enters a key trading period.
Meanwhile, the society‘s Funeral and Property divisions “provided valuable diversification and stability across the Society’s operations”.
Inflationary pressure on household budgets moderated but remains a factor, the society warns, while increased retail employment costs and regulatory burdens are “expected to remain a feature of the trading environment during the second half”.
Scotmid says community activity remained “central” to its co-operative purpose, with over £260,000 invested in communities and good causes. More than 40 local groups received funding through the Member Choice Awards, which lets Scotmid members decide how funding is allocated in their communities, while hundreds more organisations were supported through grants and donations.
Scotmid’s charity partnership with Alzheimer Scotland and Alzheimer’s Society became the society’s largest charity fundraising partnership to date, with colleagues, members and customers, raising £474,446 alongside work to promote brain health awareness.
Scotmid also continued to fund the SGF Healthy Living Programme’s Welby Breakfasts, supporting healthy eating and wellbeing among thousands of young people across its communities.
“As a co-operative society, commercial performance and social purpose go hand in hand,” said Scott. “The support delivered through our Member Choice Awards, charity partnership and community programmes demonstrates the practical difference that co-operation can make. I would like to thank our colleagues, members and customers for their continued commitment and support.”
Speaking to Co-op News, she added: “There’s still a lot of uncertainty and volatility in the market – fuel prices are increasing, the energy cap going up, we also have the budget coming at end of this month and we don’t know what that will bring. It will continue to be challenging for businesses and consumers.
“But we’re proud of our progress in the first half and in the recovery we’ve made.”
