Scotmid has reported a 1.2% increase in total sales for the year to 31 January 2015.

The Scottish co-operative society did not break out sales for its food stores or provide like-for-like sales figures, but said its sales performance in food was “ahead of the market”. Operating profit rose 22.4% to £5.5m.

It said that during the year it had focused on its ‘food vision’ by rolling out bakery counters and local ranges to stores. In-store bakery was rolled out to a further 78 stores and its Breadwinner artisan bakery offer was introduced in 12 stores.

Its local ranges had included “products such as fresh vegetables and milk from a local Scottish dairy at a price point that competes with both the major multiples and discounters.” It had also reduced the price of key lines – such as bread for 75p, 2 for £1.50 milk and £1 butter and eggs.

Scotmid also introduced a new online feedback system and installed Scotmid Radio in more than 100 stores.

“These are a solid set of figures, helping to deliver a like for like sales performance which has been consistently ahead of the market,” said chief executive John Brodie.

“Throughout the year we have continued to take tough decisions and continued our programme of   differentiation to help ensure sustainable profitability and growth going forward.

“Although this is a positive set of results it continues to be a challenging marketplace which requires us to innovate, work hard and, where necessary, take tough decisions.,” he added. “While remaining cautious and measured in our approach, the society will continue to drive new initiatives and look for other potential areas for growth.”

Last month, Scotmid announced plans to merger with fellow co-op society Seaton Valley.