Co-operative Group returns to profit as almost £40m lost to shoplifting

The Co-operative Group has laid bare the impact of shoplifting as it said the cost of crime in its stores soared by nearly 20% to £40m in the first half of the year.

The member-owned mutual has spent £18m so far this year on measures to protect staff in its food business, including rolling out body-worn cameras and fortified kiosks.

Despite this, the grocery chain took a hit of £39.5m from theft and fraud in the first six months of 2024 – up 19% on a year earlier – even as it increased campaigning on the problem.

Matt Hood, the managing director of food operations, said: “It isn’t going away. The reality is that every day four of our colleagues are attacked, up 34% on 2022, and scarily, a further 115 of my colleagues will be seriously abused, up 37% on two years ago.”

But, he added: “The investments we are making are working – our colleagues feel safer and we’re making them safer.”

The company previously said organised criminals were behind the rise in shoplifting and violence against shopworkers, rather than individuals stealing to survive. The group lost £70m from shoplifting in 2023.

The chief executive, Shirine Khoury-Haq, said she was pleased that the government planned to change the law to make shoplifting a standalone offence but the group said it needed to come into effect “as soon as possible”.

The retail-to-funerals business said it returned to profit despite the hit from shoplifting and a soaring wage bill.

The group reported pre-tax profits of £58m for the first six months of 2024, against losses of £33m a year ago, and said its stronger balance sheet would allow it to expand with new stores and possible acquisitions.

Food sales rose 3.2% across its stores, driving a 10% increase in underlying earnings at the division.

Co-op’s results revealed that its wage costs had jumped by £39m as it increased pay to match April’s 9.8% rise in the “national living wage”.

However, it was helped by rising numbers of members as it invested £55m in prices, putting the business on track to reach its goal of 8 million members by 2030, from 5.5 million currently.

The group also set out plans to open 120 retail stores across the UK by the end of 2025.