Scotmid has announced a 25% drop in annual profits against a backdrop of low consumer confidence.

The Scottish co-operative posted profits of £4.5m for the 52 weeks ending 25 January, down £1.5m on the previous year. Total sales, which increased by 0.8% to £381m, were benefited by the merger with Penrith Co-operative in October 2013.  

John Brodie, chief Executive of Scotmid Co-operative, said: “Consumer confidence in our core markets remains low and this is borne out by the Scottish Retail Consortium recording a like for like sales decline for the 2013/14 year.

“Like for like retail sales were ahead of the Scottish market and with the benefit of a merger with Penrith Co-operative total sales increased by £3m to £381m. Our balance sheet continues to remain strong with assets of £90m.”

Nine Penrith stores, located in Cumbria and County Durham, have been integrated into Scotmid’s food convenience business and will trade as Lakes & Dales Co-operative.

Other group developments included the roll out of in-store bakery counters and the refit of 10 more stores to the premium fresh format.

Scotmid’s premium format store in Barnton, Edinburgh, won the Best Multiple Store in the 2014 Convenience Retail Awards.