Co-op has posted a £45 million underlying operating ​loss for the six ​months ⁠ending 04 July, compared with a £32 million loss ⁠a ​year earlier.

The convenience retailer, which runs more than 2,500 food stores and provides funeral, insurance ​and legal ​services, did see a 2.4 per cent jump in sales growth.

It stressed it achieved this despite a criminal cyber attack; soft markets; and continued weak consumer confidence. Trading improved through the second quarter and into the second half.

Co-op’s Interim Chief Executive, Kate Allum, said: “2026 is looking like a year of two halves for our Co-op. The first half was characterised by difficult markets and low consumer confidence, especially for Food Retail.

“Against those conditions, we made decisions to drive trade – investing in promotions and investing in our stores – while also mitigating rising costs. These things have had a short-term impact on profitability.

“Speaking now in the second half, we’re seeing bigger baskets and more transactions. Conditions remain challenging, but we see reasons for confidence across our portfolio, having delivered strong growth in areas such as online convenience shopping and funerals. We expect to see a stronger performance in the second half than the first, with sales growth and improvements in profitability.”

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The group stressed it would now focus on cost management, with the increase in Co-op’s total cost base held to 2 per cent, despite £78m in additional headwinds, including annualised material National Insurance increases.

Its active membership increased 11 per cent to 7.5m, with member voting up 52 per cent at Co-op’s AGM.

In July, Co-op welcomed over 300,000 Southern Co-op members as members of Co-op Group, with 97 per cent of Southern Co-op members who voted backing the proposal to join forces.

Southern Co-op’s businesses, including 170 stores and a significant funeral estate, have now been transferred to a subsidiary of Co-op Group: Siena Co-operative Limited.

“Our immediate goal is to establish the firm foundations we need to realise greater growth in the years ahead – something we’re gearing up for as we progress our plans to join forces with Southern Co-op,” added Allum.