Tamworth Co-op has reported a trading profit of £433,000 for the year to 24 January, down from £622,000 the previous year; pre-tax profit was £362,000, up from £75,000.
In line with the rest of the UK retail co-op sector, the Staffordshire-based society said trading had been impacted by supply disruptions from the cyber attack on the Co-op Group.
Total turnover reached £28,360,000, down 1% from the previous year, with food sales “particularly challenging“ and the society “worked closely with both existing and new external suppliers to ensure that essential products remained available“ for our customers and members” during the supply disruption.
The funeral business performed more strongly, said the annual report, with overall volumes increasing by 5.7% compared with the previous year.
Property income for the year totalled £738,000, an increase of 18.6% on the prior year, primarily driven by additional lettings including the completion of a property in Colehill in late 2024.
The society reported continued increases to operating expenses, particularly because the National Living Wage and National Insurance contributions.
During the year, the society saw a modest increase in the value of its property portfolio and enjoyed a “significant gain on the disposal of fixed assets following the sale of our Lichfield store, although this was largely offset by property value impairments and other exceptional charges relating to our Church Street store.”
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In relation to the Final Salary Pension Scheme, which closed to future accrual in 2009, the society continues to contribute £375,000 annually and meets the administrative costs associated with running the scheme.
“This remains in line with the agreed recovery plan. The financial statements now show a deficit of £89,000 compared with £1,353,000 in the previous year, reflecting the continued progress being made in addressing the scheme’s liabilities.”
The year also saw the society incorporate the International Co-operative Alliance (ICA) marque into its updated branding. “We believe it complements our own identity while reinforcing our co-operative values,” said the directors in the report.
Other developments include a new funeral branch in Polesworth, the refurbishment of a food store in Dosthill, the installation of energy-efficient refrigeration systems and the rollout, working with other retail co-ops, of the SymphonyAI ranging platform.
But the society also made the “difficult decision” at the end of last year to sell its Marks Walk, Lichfield, store, with colleagues transferred under TUPE to an independent symbol group operator.
“Due to the size and layout of the store, we were unable to identify a sustainable path forward for this location within our own operations,” the report said.
Meanwhile, cost pressures and declining footfall have made trading conditions at the society’s Church Street store in Tamworth “increasingly difficult”, the report warns.
“Early in the new year we began discussions with relevant stakeholders and are now considering options for the future of the Church Street Food Store and Post Office. This includes the possibility of closure, and we are currently in the early stages of consultation with affected colleagues.
“The society continues to operate in some of the most challenging trading conditions seen in recent years, and pressures within the food retail sector are expected to persist.”
Through its Community Dividend programme, Tamworth supported St Giles Hospice in Whittington with £10,000 donation, alongside a Christmas campaign which raised £500 for 12 local charities and community organisations, each nominated by colleagues.
Forthcoming projects include further investment in both food and funeral, the launch of a new society app, and the continued rollout of the new branding across the trading estate.
The society is also drawing up plans for its 140th anniversary celebrations.
“We remain cautiously optimistic about the future,” the directors wrote. “While a number of neighbouring co-operative societies are merging, our society remains strong, independent and well positioned to continue serving our members and communities in the years ahead.”
