Record investment helps to drive robust financial performance at Central England Co-operative

Posted by nathan lloyd | Published: 02/05/2017


Central England Co-operative has announced its year end results, to 28 January 2017, showing a robust and encouraging financial performance alongside several major achievements highlighting success as a modern, member-owned co-operative business.

Despite operating in a very challenging and highly competitive retail environment, the Society’s total gross sales and operating profit remained broadly in line with the prior year.

Continued investment in growing the Food and Funeral arms of the business remained part of the Society’s long-term strategy and resulted in strong sales in its convenience store estate.

Central England Co-operative was also recognised for its work as a successful co-operative by being named Leading Co-operative of the Year, as well as seeing its Business in the Community CR Index score leap from 2.5 to 4.5 stars.

Highlights include:
• Sales of £843.5m were broadly in line with the prior year
• Record capital investment of £45.6m
• 13 new openings; 9 retail stores and four funeral homes, coupled with large-scale refurbishment activity across the business
• Significant achievement as a responsible business included being named Leading Co-operative of the Year for the second time by Co-operative UK, increasing its Business in the Community CR Index score from 2.5 to 4.5 stars and the installation of over 150 defibrillators at food store and funeral homes across the entire trading estate.

Chief Executive Martyn Cheatle said:  “We achieved a very pleasing performance in 2016 from both a financial and non-financial perspective, underlying our efforts to be a modern, progressive member owner co-operative business.

“With a retail sector that is both very challenging and highly competitive, we delivered a resilient performance that has helped form the solid bedrock for continued stability, investment and growth.

“While we expect trading conditions to remain challenging and competitive for the foreseeable future, the Society has clear strategies in place to optimise our co-operative and ethical point of difference and focus on continuous improvement in order to deliver sustainable business growth for the benefit of our members, customers and local communities.”

The Society enjoyed a positive performance from its retail arm of the business, with further growth in our convenience stores, with particular highlights being over the Christmas period.

Nine new food stores have been opened as a result of significant investment, which was implemented alongside extensive refurbishment works at over 40 other stores. The customer and member offering has also been improved by the inclusion of concessions such as Dorothy Perkins and The Works in larger stores.

Our drive to offer the best shopping environment by focusing on customer service, quality and value continues to be reflected in strong customer satisfaction scores and positive feedback.

Funeral operations maintained steady growth during the past year, with increased interest in our pre-paid funeral plans.

The focus remained on providing the highest standards of care and service to families at their time of need through funeral homes, florists, masonry and supported by the Society’s coffin manufacturing business and Bretby crematorium. 

The past 12 months have also seen four new funeral homes opened, £1.9 million invested in new Mercedes limousines and 10 cuddle cots purchased to form part of the Society’s ‘Rainbow Service’, which provides a complimentary funeral service to children 17 and under.

In terms of Specialist Business, the Society’s 19 Travel shops performed well in 2016 - despite facing difficulties in a fluctuating holiday market and its Optical business continues to deliver high quality services in a competitive sector.

The vital role colleagues play in the success of the Society was reflected in the distribution of a Share of the Profits colleague dividend of £800,000. Their success was also recognised with the launch of Leading Brilliance awards to showcase talent and outstanding performance. Colleagues also helped support the communities in which they serve by donating over 1,000 hours for volunteering.

The Society’s commitment to Corporate Responsibility resulted in a raft of successes including scoring 4.5 stars on the BITC CR Index, installing 150 defibrillators at food stores and funeral homes, and handing out over £220,000 to good causes via the Community Dividend Fund scheme. In a first for a co-operative, the Society published its ground-breaking Social Return on Investment report which revealed that every £1 invested in the community generates a positive community benefit of £20.50.

As a community retailer, Central England Co-operative also continued to support its corporate charity partner, Newlife the Charity for Disabled Children by helping to raise over £1.3 million since the partnership began in 2012.

As in previous years, stakeholder groups of members, colleagues and communities benefited from the success of the Society’s performance by sharing in a £4.2m pay out.