The Co-operative … good with festive sales figures

THE Co-operative Group's like-for-like sales rose 5 per cent after it launched a price-cutting salvo to compete with supermarket rivals at Christmas, writes Peter Ranscombe.

The UK's fifth-biggest food retailer – it has 3,000 stores after buying Somerfield last year – unveiled a 200 million package of cuts and promotions over the festive period, including its first triple dividend.

It said the recent overhaul of its brand and an increase in seasonal advertising had also helped it to attract more customers to both its convenience and larger store formats.

Like-for-like sales increased by 4.8 per cent in the 12 weeks to 2 January, with sales 5 per cent higher in the final three weeks. Total sales were up by 66 per cent after the Somerfield acquisition. Chief executive Peter Marks described trading conditions as "competitive", but said the presence of Co-op stores within local communities had given the chain an edge at a time of rising fuel prices and extreme weather.

Marks said the chain expected the current economic pressures to continue until the end of this year or the first half of 2011.

Despite the recession, the Co-op said its customers had been determined to make the most of Christmas. Sales of champagne were up by 83 per cent, with demand strongest for its Veuve Monnier Brut Champagne, priced at 12.

There were also strong performances in meat and poultry, chilled foods, beers and confectionery, the Co-op said.