Co-op H1 losses widen but outlook brighter

(Sharecast News) - The Co-op Group reported a widening of its first-half losses on Wednesday, citing an accounting change and investment in its stores and promotions, but struck an upbeat note on the outlook.

Underlying operating losses at the company, which was hit by a cyber attack last year, widened to £45m from £32m in the same period a year earlier. Co-op said £11m of the variance reflected an accounting treatment.

Total group revenue rose 2.4% to £5.6bn, with food retail revenue 2.6% higher at £3.7bn, while Co-op Partners saw a 1.9% increase to £989m. Revenue from Wholesale and Franchise was flat at £683m and Life Services revenue ticked up 8.1% to £227m.

Co-op said revenue growth was achieved in soft markets with continued weak consumer confidence. Trading improved through the second quarter and into the second half, it added.

Chief executive Kate Allum said: "2026 is looking like a year of two halves for our Co-op. The first half was characterised by difficult markets and low consumer confidence, especially for Food Retail. Against those conditions, we made decisions to drive trade - investing in promotions and investing in our stores - while also mitigating rising costs. These things have had a short-term impact on profitability.

"Speaking now in the second half, we're seeing bigger baskets and more transactions. Conditions remain challenging, but we see reasons for confidence across our portfolio, having delivered strong growth in areas such as online convenience shopping and funerals. We expect to see a stronger performance in the second half than the first, with sales growth and improvements in profitability.

"Our immediate goal is to establish the firm foundations we need to realise greater growth in the years ahead - something we're gearing up for as we progress our plans to join forces with Southern Co-op."