The Manchester based Co-op is warning that the country’s supply chain disruption would put pressure on full year profit.
The group made an underlying operating loss before tax of £15 million pounds for the 26 weeks to July 3, versus a profit of £56 million pounds in the same period last year.
The Co-op said the shortfall reflected planned investment in staff and the business, as well as significant costs, impacts on sales and profit erosion related to product availability issues and the ongoing effects of the COVID-pandemic.
Revenue fell 3.2% to £5.6 billion in the same period as the Group said that “The unplanned supply chain challenges and ongoing COVID costs will bring greater levels of uncertainty. This will in turn apply pressure on our prior expected level of profitability for year end,”
Meanwhile the retailer has announced that it is partnering with Amazon and extending robot deliveries as it seeks to more than double online sales by the end of the year.
The new partnership and robot rollout are key to Co-op’s plans to speed up “rapid kerb to kitchen grocery delivery services” as it strives to lift online sales from £70 million to £200 million.