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Co-operative Group reports £2.5bn loss in FY2013

Published 21 April 2014

Co-operative Group, a British consumer cooperative with a diverse range of retail businesses, has reported a loss of £2.5bn for fiscal year 2013, compared to loss of £529m a year ago.

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Co-operative Group, a British consumer cooperative with a diverse range of retail businesses, has reported a loss of £2.5bn for fiscal year 2013, compared to loss of £529m a year ago.

In the year to 4 January, UK's fifth largest grocer posted an operating loss of £148m compared with an operating profit of £142m a in the prior year.

The group said that its performance was hit due to heavy investment in its banking arm, which it owns a 30% stake in; £226m impairment payment on the acquisition of Somerfield in 2009 and increased central corporate costs.

For the 52 weeks, the group suffered a decline in its food performance. Pharmacy sales fell to £760m (£764m), with underlying profits up to £33m (£28m)

Like-for-like sales for core convenience chain rose by 1.6%.

Co-operative Group chief executive Richard Pennycook said 2013 was a disastrous year for the company, the worst in their 150-year history.

"Today's results demonstrate that but they also highlight fundamental failings in management and governance at the Group over many years," Pennycook added.

"These results should serve as a wake-up call to anyone who doubts just how serious the challenges we face are."

Meanwhile, the grocer is planning to expand its convenience store estate by opening over 100 new convenience stores this year.

Also, the group is continuing to explore opportunities for the sale of our Farms and Pharmacy businesses.

Co-operative Group operates 4,500 retail outlets and employs approaching 90,000 people.