Co-operative approach lifts Scotmid results during the pandemic

  • Trading profit of £6.4m for the 53 week year ended 30th January 2021
  • Turnover increased by £24m to £409m
  • Strong balance sheet with net assets of £103m
  • Innovation benefit but significant additional COVID 19 costs
  • Colleagues supported our communities magnificently throughout the crisis
  • Co-operative response with community groups and charities

 

Through co-operation and innovation, Scotmid Co-op Society has delivered a £6.4m trading profit for the 53 weeks ended 30th January 2021 compared to £5.6m for 52 weeks last year.

John Brodie, Chief Executive of Scotmid Co-op said, “This was a year dominated by the pandemic and the significant but varying impact it has had on our different businesses.

“Changes in consumer behaviour during the pandemic resulted in an increase in local essential shopping in Scotmid’s food convenience stores. Customers visited less frequently, spent more each visit but the costs of operation were significantly more than usual.  I was heartened by the overwhelming appreciation we received from our communities for Scotmid’s front-line colleagues and support teams who continued to serve our communities through the peak of the crisis.”

“Like many other non-food retailers, Semichem was significantly impacted by the pandemic due to low footfall on high streets and a long period of closure in the first wave.”

“Scotmid Funerals conducted more funerals but at a reduced income per funeral due to safety and social distancing restrictions.”

‘Scotmid’s property portfolio suffered a reduction in rental income during the crisis due to the support provided to our tenants and a number of defaults.”

“Our co-operative and community development activity concentrated on the fulfilment of our core purpose through the Society’s community-based response to the pandemic. The Society helped hundreds of local community groups and larger charities to alleviate hardship through a Covid Community Fund. A free home delivery service to those shielding was made available with our charity partner, Chest Heart & Stroke Scotland, and a range of larger projects were supported with a focus on areas such as homelessness, food banks and mental health.”

“Last year, I highlighted the importance of our continuous improvement philosophy to help guide the Society through the considerable challenges faced from global events, particularly COVID-19.

“In response to the pandemic, the Society has harnessed innovative ideas to rise to this unprecedented challenge and continue to serve our communities effectively. I am very proud and thankful to the colleagues across all parts of the business that have gone above and beyond during the crisis. They have clearly demonstrated our core purpose in such difficult circumstances.”

“Financially, it was a tougher second half to the year with the cost burden increasing but with the benefit of our diverse set of businesses, backed up by government support, we have successfully co-operated together across all levels in the Society to deliver a strong year-end result.”

“Looking forward, we still face considerable planning uncertainty surrounding the timing of the end of the crisis and the likely post-pandemic impact. Therefore, with our continuous improvement mind-set, we will continue to adopt a flexible approach and focus on matters under our control to deliver our core purpose of serving our communities and improving people’s everyday lives.