Central Co-op has announced an operating profit of £9.2m for the year to 25 January, down from £20.6m the previous year.
Profit before tax and stakeholder payments was £12.4m (2024: £8.7m), with turnover slightly down at £883.9m (2024: £960.9m). Net debt was £9.2m (2024: £20.6m).
CEO Debbie Robinson said the fall in profit was primarily driven by a £1.2m impact from the closure of the society’s distribution centre closure and the falling death rate hitting the funeral business.
She added that the increased debt – well within the society’s debt facility of £50m – reflected continued investment by co-op, with £40m used to open five new stores, regenerate 35 existing sites, refurbish 12 funeral stores, and continue the adoption of self-checkout tills, digital shelf edge, rooftop solar and digital funeral services.
The society says the “significant investment in its people, communities and sustainability goal” comes despite global financial pressures and inflation affecting food sales.
Central says it also increased the minimum hourly rate to £12 for frontline colleagues, alongside “significant health and wellbeing support”.
On food waste and food insecurity, the society launched a partnership with Olio and reached the milestone of 1 million surplus food items redistributed, feeding over 13,000 local families.
And £1.8m was invested in in loss prevention, body-worn cameras and crime deterrent measures, alongside campaigning for legal protections for shopworkers.
“In today’s economic climate, money sitting in the bank is a luxury,” added Robinson. “We’re investing in our society, our colleagues, our stores and our communities because that’s what co-operatives do – we exist to give back, not to generate excessive profit. Despite economic headwinds, we’ve made choices that will strengthen our future and support those who rely on us.”
Central said it “continues to lead the way in ethical and sustainable retailing, making long-term investments that align with its climate commitments of becoming self-sufficient in green energy by 2030 and net zero by 2040”.
Related: Central Co-op works with supplier Lyreco to curb environmental impact
Measures include the recent £10m investment in a power purchase agreement with RWE, with the goal of wind power meeting 20% of its total energy needs. And its solar panel expansion has reached 117 sites, generating 6.71 million kWh of power annually, with plans to expand to 53 more locations in 2025.
“New store developments have also prioritised sustainability,” the co-op adds, “with recent builds achieving net zero or carbon-negative credentials.”
“Beyond financial figures,” the report says, “Central Co-op remains deeply committed to its co-operative values, launching initiatives that make a tangible difference in communities. While the US, UK and other countries reduce development aid, Central Co-op became a founding member of the newly established Fund for International Co-operative Development (FICD), which will provide support to other co-operatives globally through trade, not aid – strengthening the movement’s international impact.
“Meanwhile, the society’s ongoing “Our Malawi Partnership” continues to thrive, supporting education and trade in the country, with sales surpassing £800,000 and introducing the UK’s first 100% Fairtrade macadamia nut product in 2024.”
Related: Central Co-op’s Malawi Partnership continues to thrive
The society also pointed to local investments in community wellbeing, installing defibrillators and bleed kits across its store network to provide vital support in emergencies.
It has also contributed £20,000 to humanitarian relief efforts in the Middle East and remains committed to mental health support through its ongoing partnership with Samaritans and it has achieved Silver accreditation in equality, diversity, and inclusion , introducing new colleague support networks that champion underrepresented groups.
“While economic conditions remain challenging,” it says, “Central Co-op focuses on a sustainable future, thanks to its investment strategy and people-first approach. In this UN International Year of Co-operatives, Central Co-op stands as a shining example of how co-operative values continue to drive meaningful change.”
