Scotmid Co-op lifts turnover by £6.7m in half-year results

The retail society posted an operating profit of £2.6m but warned of uncertainty over Covid-19 and Brexit

Scotmid Co-op reported an operating profit of £2.6m for the 26 weeks to 25 July in its interm results – down from £2.8m in the same period last year.

Trading profit rose 25% to £3.1m, and turnover rose by £6.7m to £197.1m.

In its report to members retail the society said: “This result was heavily influenced by changes in consumer behaviour as a result of the Covid-19
pandemic. The society’s balance sheet strengthened at the half year as we took a prudent approach to prepare for challenges we are likely to face in the second half of the year.”

It added: “Our food convenience business benefited from more customers choosing to shop locally. Our frontline colleagues, support teams and supply chain came through the most challenging of circumstances to respond
to the unprecedented demand levels, sickness and social distancing requirements to continue to serve our communities.”

The society had to close all the stores in its Semichem chain, leaving its results down for the period. But Semichem’s distribution network proved an asset, helping the Food business source stock.

“Property income came under pressure,” the report added, “and our Funeral colleagues went the extra mile in adversity to provide the best service possible, in adherence with government guidance.”

The report also outlines the society’s community support initiatives during the pandemic, with more than £160,000 donated to those in need; and Scotmid worked with its charity partner, Chest Heart and Stroke Scotland, to provide a free home delivery service to those shielding.

“We have responded in a timely but measured way to the new Covid-19 world but have been flexible, learning from the outcomes and adapting plans accordingly,” it added.

“This, however, is only the starting point because as government
support is withdrawn, the recession is likely to be prolonged, not helped by the uncertainty caused by the Brexit transition.

“Looking forward to an uncertain second half of the year, it is more important than ever for the society to focus on matters under our control and deliver our core purpose of serving our communities and improving people’s everyday lives.”