Boss focuses on the long term amid economic crisis
BOSS John Brodie remains confident about Scotmid Co-op’s long-term future despite a dip in profits.
Trading profits for the year ending 28 January were £3million – £2.7m down on the previous year.
But turnover was up £3m at £406m and a significant £21.9m investment in capital projects meant the society’s net assets increased by nearly £10m to an all-time high of £122.5m.
The chief exec said: “Looking forward, I remain cautious in the short-term. But our balance sheet is stronger than it has been throughout the society’s 163-year history.
“So, guided by our core purpose of serving our communities and improving people’s everyday lives, this provides the capability to seek out longer-term opportunities and navigate carefully through the cost-of-living crisis.”
Brodie said Scotmid had predicted and planned for the tough trading conditions, especially for the society’s 186 food convenience stores, which had faced significant headwinds.
He said: “There were a number of factors that impacted performance, including energy costs, food price inflation, pay-rate growth and low consumer confidence from the cost-of-living crisis.”
Nonetheless, there was significant investment for the longer-term benefit of the store estate, including the rollout of electronic shelf edge labels.
Refit work included the introduction of more environmentally friendly fridges, digital screens and other equipment to support the company’s food-to-go offer.
Scotmid had also helped hard-pressed customers through an Everyday Value Campaign and its prices had risen more slowly than the general rate of food inflation, said Brodie.
He was also pleased to report that the society had continued to provide funding and support for numerous good causes, whether local, national or international.
Brodie concluded: “Overall, this was a solid underlying financial performance by the society.”
