The Channel Islands Co-operative Society has reported gross profit up 11.8% to £40.3m on sales up 6.8% to £134.75m for the year to 13 January.

Food stores had accounted for nearly all of the increase, with sales up 9.5% against a backdrop of food inflation at 6.1% on Jersey and 5.8% on Guernsey last year, however non-food stores had struggled in the highly competitive trading conditions, the society said.

Stores on Guernsey had performed particularly well, with results helped by a new store opening in St Peter Port before Christmas.

Work would continue to refresh the society's brands, said CEO Jim Hopley.