Co-op is edging closer to its goal of achieving 30% of the UK quick convenience market as it strengthens its partnerships with rapid grocery delivery firms.
Co-op Food managing director Matt Hood told Grocery Gazette that while he’d like the convenience retailer’s goal to be even higher than the current 30% target, it is “definitely on track” to reach it.
The business partners with Uber Eats, Deliveroo and Just Eat, and now has coverage of nearly 83% of the UK that has access to one of its quick commerce channels.
“We are over 20% of that market and as we now sit here with a much more solid balance sheet, we’re starting to look at just how big that quick commerce market could be for us because customers continue to love it. They continue to find it an even more convenient way of shopping.
“I would hope that the 23% growth that we’re seeing in this space will continue and enable us to hit those targets,” Hood added.
This comes as Co-op has reported a £44m increase in underlying operating profit, driven by its £101m cost saving efforts in 2022 and further savings in the first half of 2023.
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While Co-op expects “volatile external environment and turbulent economic headwinds” to continue, it is “more financially stable” and “more ready to invest and grow” as the board remains “confident” in the current strategy.
However, Co-op CEO Shirine Khoury-Haq said it continues to battle rising levels of retail crime as its food business lost £33m in the first six months of 2023 to cases of shoplifting.
She said “the real cost is to the physical and mental safety of our store colleagues where they have to face these issues every single day. It should not be part of their job.”
Co-op has been calling on police to target repeat offenders and through a Freedom of Information request, it found that 71% of serious crimes had not been responded to by police.
“We could have told you the number was extremely high just from the feedback that we were getting from our colleagues. But that confirmed it,” Khoury-Haq explained.
“Now without a change of police response, the fabric and confidence of communities will continue to be undermined and it’s critical that they that they improve the response rate.”
Hood added: “We’ve invested over £200m over the last few years in initiatives such as body cameras, CCTV, covert and non-covert guarding, and increasingly new and innovative solutions such as AI cameras to try and keep our colleagues and our stores safe.
“That’s why I’m increasingly frustrated by how our efforts are not matched by those who have the power to enforce consequences.”
