Sales across East of England Co-op’s food business dropped 4.6% to £309.6m as it closed loss-making stores as part of its turnaround plan.
According to the society’s financial results for the year ending 24 January, the drop in turnover was party driven by a decision “to rationalise the trading estate to focus on driving higher profitability”.
It now operates 120 food stores, spanning Essex, Suffolk, Norfolk, Hertfordshire & Cambridgeshire, having opened five new ones over the year. Margin from its food business increased by 0.5% as a result of “continued focus on the right products”, it added.
“The strategy we’re following is working and we’re going to keep focusing our investment where we see the greatest long-term impact,” said CEO Andy Rigby. “This includes supporting new store openings, further investment in our existing sites, and bringing forward new innovative business ventures.”
Rigby also pointed to the disruption that the cyberattack on Co-op Group caused to the supply of food to its stores last year.
“We were faced with the impact of the cyber incident on Co-op Group, affecting deliveries to our stores,” he said. “However, our incredible local suppliers and colleagues came together brilliantly to minimise the impact to our customers.”
Looking at other parts of its business, petrol filling station sales fell by 10.4%, while sales across its travel estate reduced by 2.2%. Funeral sales, meanwhile, increased by £0.2m but suffered a slight reduction in margin. Overall, the company’s turnover fell 4.6% to £367.8m as it focused on its convenience offering.
The society, however, has doubled underlying trading profits to £2m. It said it marked the third successive year of increasing profitability, which demonstrated the “positive actions of colleagues across the society”.
“Over the 45 years I’ve been in the retail business, last year was one of the most challenging I’ve experienced in the food retail space,” said Rigby. “But, against the odds, we’ve delivered an underlying trading profit of £2.0m.”
Some of its key highlights of the year included reducing CO2e emissions by 25%, opening its first fully cashless store at Ipswich train station, and supporting 775 community groups and charities.
According to its financial report, the society has also focused on its membership offering with the launch of a new website, trialling a quick commerce platform, and developing fresh food ranges.
“A key priority for us next year will be expanding and evolving our membership proposition, focusing on delivering a more personalised offer that truly benefits our current members as well as attracting new ones,” Rigby added.
East of England Co-op chief financial officer James Norman said: “We’re operating in a difficult retail trading environment. This is a nationwide challenge driven by rising operating costs in areas such as business rates, employment costs and energy prices as well as global economic uncertainty.
“We’ve worked hard this year to offset these challenges with measures such as careful investment in our property portfolio and a continued strategic focus on the right products in our food business.”
Rigby added: “I’m absolutely committed to serving our local community and I’d like to take this opportunity to say a heartfelt thank you to everyone who has contributed to the growth of our co-op throughout 2025.
“I’d like to specifically thank our members and customers for trusting us with your business and for your continued support – we really appreciate it and are proud to be of service to you now and in the future.”
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