Co-op has on Thursday announced its full-year financial results for 2024, revealing a downturn in its wholesale division despite overall group profitability and strong membership growth.
The business-to-business (B2B) arm, which supplies independent retailers through its Nisa network, reported a £1 million loss compared to a £14 million profit in 2023, as it absorbed rising costs to support partners during economic pressures.
While the Co-op Group maintained stable revenues of £11.3 billion and saw underlying operating profit rise by £34 million to £131 million, its wholesale segment faced a 5.5 per cent revenue decline to £1.4 billion.
The company attributed the loss to "continued challenging market conditions" and strategic price investments to help retail partners navigate inflation. Despite the dip, Nisa retained an 11.9 per cent market share in a declining sector, with 92 per cent of partners stocking Co-op own-brand products.
In contrast, the Co-op’s food retail division performed strongly, with revenue up 1.9 per cent to £7.4 billion and operating profit increasing by £28 million. Online sales surged by 46 per cent, while membership penetration in food stores rose to 38 per cent.
The Co-op’s active membership base grew by 22 per cent to 6.2 million, putting it on track to reach 8 million by 2030. A key driver was its sponsorship of Manchester’s Co-op Live arena, which brought in 108,000 new members. The group also invested £92 million in member pricing and £96 million in staff pay to offset cost-of-living pressures.
“These results show that our strategy on delivering for our member owners whilst also delivering long term financial and operational progress is working,” commented Debbie White, Co-op Chair.
Chief executive Shirine Khoury-Haq added that the Co-op remains focused on medium-term profitability despite external headwinds, including inflation and regulatory changes.
“While broader economic challenges remain, our businesses are delivering strongly against the market,” Khoury-Haq said. “We look to the future with confidence, supported by a strong balance sheet and a clear and compelling business strategy.”
The franchise business saw a 31 per cent revenue increase, with 20 new sites opened, including its first NHS and MoD sites as well as seven new stores with EG On The Move. The Co-op plans to double franchise openings in 2025.
Last week, the group has announced the launch of Co-op Wholesale, with its fascia brand being fully retained as part of the suite of services available to Co-op’s independent partners.
