Scotmid Co-operative Society has posted bumper half-year profits after selling one of its supermarkets to Tesco.
Profits at the society – which in April offloaded a 40,000 sq ft supermarket in Leith to Tesco – soared from £3.2m to £9m in the period to 31 July. Sales rose 5% to £178m.
Proceeds from the store sale were invested back into the business, including four new convenience stores, said chief executive John Brodie.
The society’s food division had performed well despite fierce competition, he added, warning that trading conditions would remain tough.
“The markets in which we operate are challenging and are likely to be particularly so in the early part of next year as austerity measures bite and the next VAT increase takes effect,” he said.
“The ongoing focus on continuous improvement remains core to our approach and we will continue to monitor potential growth opportunities.”
Scotmid racks up record £10m profits (30 April 2010)
Tesco swoops for Scotmid’s largest store (9 April 2010)