Food-to-funerals co-operative Scotmid notched up a 35% rise in profits during the 26 weeks to July 29, chief executive John Brodie revealed today.
Mr Brodie said a tight rein on costs helped Scotland’s largest independent co-operative grow trading profits to £1.5 million, compared with £1.1m a year ago.
“Leaner, more agile and technology-enabled ways of working” and innovation also helped the buiness overcome multiple challenges from the cost-of-living crisis, increasing interest rates, high inflation and low consumer confidence, he added.
Turnover was up by £12m at £212m despite the difficult trading climate, he said.
Scotmid launches search for next CEO
Mr Brodie also announced he will retire next August after 20 years at the helm.
The hunt for his successor has already begun.
Scotmid operates 187 food stores, 63 Semichems, 16 funeral homes and a substantial property portfolio. Its footprint spans Scotland, the north of England and Northern Ireland, with the component businesses employing more than 3,500 people in total.
The group has food stores in many locations across the north and north-east, often in places where there are no larger supermarkets.
Mr Brodie said the shops tend to do well when the weather is nice and people come in for food-to-go. As such, spring and early summer 2023 delivered good sales but July and August, when the sun struggled to get the upperhand, were not so rewarding, he added.
Scotmid’s CEO revealed family links, through his wife, to Brora in Sutherland.
He has been with Scotmid for more than 30 years in total. A chartered accountant by profession, he joined Scotmid in 1993 as chief financial officer. He was appointed acting chief executive in 2004 and CEO in February 2005.
‘Very much business as usual’
“It’s certainly not goodbye just yet as there is still a great deal of work to be done between now and next August, so it’s very much business as usual.
“However, making my announcement early will help ensure a smooth transition, enabling the society to continue as normal.
“I can say, however, that the past 30 years have been full of a huge number of positives and a number of challenges.”
Mr Brodie, 59, is also chairman of trade body the Scottish Retail Consortium.
Scotmid president Jim Watson said, “On behalf of myself, the board of directors, staff, and members, I would like to thank John for the way he has guided the society through some of the most difficult times that businesses have ever faced, from the credit crunch, Brexit and Covid through to the continuing cost-of-living crisis.
“When he retires next August, he will hand over a strong and successful society that delivers our core purpose of ‘serving our communities and improving people’s everyday lives’.”
Semichem has seen footfall, or the number of shoppers coming though its doors, improve.
But it is still below pre-pandemic levels as the marketplace “adjusts to the new norm”, the Edinburgh-based group said.
It added: “Supply chain cost pressure and weaker consumer confidence had an impact, but the division moved forward in the period.”
Scotmid Funerals saw an increase in ceremonies and plans sold.
Meanwhile, the property business continued to grow, which Scotmid said was thanks to positive rent reviews and strategic investment decisions over many years.
Summing up, Mr Brodie said: “With the current market and economic challenges, it was expected that our profit levels may not be maintained in the first half of the year.
“However, innovation and cost control by the team, as well as the head office restructuring earlier in the year, has allowed us to deliver a solid performance.”
He added: “I am proud of Scotmid’s members, colleagues and customers who have helped to raise a fantastic total £295,000 for our charity partner, Guide Dogs.”
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