Scotmid has posted a small drop in half-year sales and profits.
In what the Scottish co-op described as a “challenging retail trading environment”, operating profits before exceptional items fell 6.2% to £2m on sales down 0.65% to £209.8m in the six months to 27 July.
“The good summer weather gave a strong boost to our retail trading businesses in late June and July, helping to catch up with the adverse effect of the prolonged cold weather in winter and spring, which impacted on our early retail sales performance,” said CEO John Brodie.
“We continue to sound a note of caution as the erosion of real terms disposable income is the everyday reality for our customers”
During the period, the society agreed a merger with Penrith Co-op, taking its food business into the north of England for the first time. Its pharmacy chain Semichem trades in northern England, as well as Scotland and Northern Ireland.
Brodie added: “Although there have been some reports of economic recovery, this appears to be specific to certain locations and sectors and is not evident in the retail and consumer sectors in Scotland, Northern Ireland and northern England.
“There will normally be a significant time lag before any recovery filters down to consumers, so the outlook for the second half of 2013 remains challenging. We continue to sound a note of caution as the erosion of real terms disposable income is the everyday reality for our customers.”