Scotmid Co-operative has delivered a £2m operating profit for the 26 weeks ended 1 August 2015.
This compares to a £2.1m profit for the same period last year, which the Society describes as a “solid performance” against a background of declining retail sales in Scotland. Turnover dropped £6m to £206m in the six-month period, during which time the Society closed a number of loss-making stores.
Chief executive John Brodie said: “In the context of poor early summer weather in Scotland and the challenging retail market this has been a good performance from our retail trading businesses.
“Our food convenience business continued the programme of differentiation, including bakery and local products and also made a significant investment in energy saving measures. Similarly, Semichem’s core stores benefitted from the introduction of new products and supplier partnerships delivering lower prices on branded goods.
“Tough decisions continue to be taken on loss-making stores but it is pleasing to report that a number of unprofitable stores were saved from potential closure through successful lease negotiations. Whilst food deflation and lacklustre consumer spending has impacted on our performance we have still been able to produce a set of figures ahead of the local retail market.”
In March the society announced a potential merger with Seaton Valley Co-operative, based in the North East of England. A members’ meeting in August gave unanimous support for a merger effective on 3 October.
Scotmid’s Stockbridge store in Edinburgh was named Convenience Retailer of the Year at the 2015 Convenience Retail Awards.