Scotmid sales boosted by summer heatwave
Scotmid Co-operative’s half year profit has increased by 16% to £2.3 million after its food business delivered strong sales over the summer.
In addition, its trading turnover rose by £3 million to £184 million in the 26-week period to 28 July.
John Brodie, chief executive of Scotmid Co-operative, said: “Scotmid delivered a good half-year performance – even though the Society was facing into a challenging landscape of continued uncertainty and ongoing cost pressures.
“These challenges included the trading environment, cost increases, ongoing Brexit uncertainty and the sluggish retail market, but the biggest factor impacting on the Society’s results during the first half of the year was extreme weather – snow with the Beast from the East followed by the hottest summer for 40 years.”
However, Scotmid said its food business benefited from the heatwave as people looked to shop more locally.
Brodie added: “When the sun came out, our food business took full advantage of people changing their shopping habits and that upturn in our food retail business drove the overall Society result for the first half of the year.”
Scotmid said trading conditions for its Semichem pharmacy business continue to be “challenging”, although its trading result had improved half way through the period due to cost cutting actions.
During the period Semichem also trialled new store concepts including the launch of two stores with a greater focus on health and beauty.
Looking ahead, Scotmid said the summer heatwave had been good for its food business but that the return of normal weather would make the second half more challenging.
Brodie added: ““So we will continue to focus on innovation, effective investment and tight control of costs to continue to make progress in this unforgiving retail market.”
