Scottish retail sector stalwart John Brodie will step down after 20 years at the helm of Scotmid with the co-operative food, funerals and property business in rude health despite another “very challenging” 12 months.

Serving up the historic group’s final set of accounts before handing over the chief executive’s baton this August, when he hits 60, Brodie said he was bowing out from a “very strong and resilient organisation”. He told The Scotsman that he would be having “a period of rest and reflection” and that if he did embark on another venture post-retirement “it won’t be anything like this”.

Brodie, one of the industry’s longest-serving bosses at a business whose trading roots stretch back more than 160 years, said: “I feel proud to have had the opportunity to lead Scotmid for the past 20 years and grateful to my colleagues for what has been achieved, having seen massive change over that period.

The Scotmid convenience stores are the most familiar face of the 165-year-old co-operative business.

“Given that we are 165 years old this year, we’ve come through many things such as world wars and the Great Depression. In my time, I can point to the financial crisis, the pandemic and the cost-of-living crisis. But this is a very strong and resilient organisation. I’ve been chief for 20 years and in many businesses that would be an extraordinary stretch but in the life of the society it’s quite a short space of time.”

The society has been at the heart of Scottish communities since 1859. These days its businesses encompass Scotmid Co-operative, operating hundreds of local convenience stores, Lakes & Dales Co-operative, Semichem, its funeral division, post offices and property investment. The group employs almost 3,500 people in Scotland, Northern Ireland and the north of England.

The results for the 52 weeks to January 27 show that Scotmid delivered a trading profit of £4.3 million. That represents a £1.3m improvement on the previous year’s result, primarily due to central cost savings. Turnover topped £425m, up by £18.5m on the year before, while the group pointed to a strong balance sheet with net assets amounting to £120.8m, down marginally on the prior 12-month period. Net debt was cut by £3.7m during the year.

Brodie said: “This is a good set of results against a very challenging backdrop. The cost-of-living crisis is not going away any time soon though. Across the industry retailers have done a great job trying to keep prices down but there are still cost pressures coming through. There is a tough balance between what can be absorbed and what has to be passed on.”

John Brodie is retiring after a total of more than 30 years’ service with the society. Picture: Phil Wilkinson/Scotmid

He added: “Our food convenience division was impacted significantly by cost challenges. Notably, there were substantial increases in energy, wage costs, credit card commissions and delivery charges. There was also a challenging balance to be struck between price, margin and volume impact given the inflationary market conditions. Despite this, the division moved ahead year-on-year.

“Semichem moved forward despite this being the first year with no legacy Covid support while many of our trading locations continued to suffer from lower footfall.”

The society reported a “solid contribution” from its property business as it benefitted from good commercial rent reviews and lower-than-expected bad debt levels. However, market conditions did negatively impact on property values. Scotmid Funerals conducted more funerals across the full year, while customers focused on “more affordable packages” amid ongoing spending pressures.

Faced with external pressures, the society introduced a new operating model during the year with a “leaner” structure recognising the investment made in technology, as well as maintaining a focus on controlling store costs and margin opportunities.

Meanwhile, the group’s membership and community team continued to deliver funding, with donations made to several national charities and good causes as well as substantial contributions via the Winter Giving project.

Scotmid announced last September that Brodie would be retiring this year, after a total of more than 30 years’ service with the society. Karen Scott - formerly chief operating officer, retail - has been appointed chief executive designate and is due to take up the top post from August.

Writing in the society’s latest annual review, president Jim Watson, who retires next month, said: “John has been instrumental in Scotmid’s growth, development and success over the last 20 years. He has led with intellect and strategic thinking through some of the most turbulent times in our history, including the financial crisis and Covid pandemic. John will be greatly missed and best wishes from all colleagues are extended.”

Brodie joined the society in 1993 as chief financial officer, was appointed acting CEO in 2004 and took the role on permanently in 2005. He has been chair of the Scottish Retail Consortium (SRC) but will step down in the middle of May, with the organisation’s director David Lonsdale stating: “John Brodie is a towering figure in Scottish retail. He has made an enormous contribution to the industry and to the Scottish Retail Consortium.”

Brodie added: “The tough trading environment which I previously highlighted unfortunately continued into 2023 with many headwinds facing the society. Inflation in the market started to come down as the year progressed, however consumer confidence remained firmly in negative territory. Scotmid showed resilience in these conditions and, backed by a strong balance sheet, the society can remain focused on our core purpose of serving our communities and improving people’s everyday lives as we move into our 165th year of trading.”

'Towering figure in Scottish retail' John Brodie announces 2024 retirement as Scotmid CEO

Scotmid chief Brodie bows out after 20 years leaving ‘strong and resilient organisation’

Comments