Coop Denmark reported a loss of DKK 628 million (€84.2 million) across its operations in its financial year 2022, which it described as 'the worst year ever' for the group and its independent co-operative associations.
However, revenue for the period amounted to DKK 46.9 billion (€6.3 billion) excluding VAT, registering growth of 2% year-on-year.
The company stated that 'large investments' in developing the business, and a decline in consumer confidence affected its performance.
"It is an unsatisfactory result, which comes after a number of good years. But 2022 was also the year when we accelerated the investments in our strategy, Fremtidens Coop, which will transform Coop and ensure a simple, efficient and winning Coop with fewer but stronger chains," board chairman Lasse Bolander said.
In 2022, Coop Denmark invested DKK 750 million (€100.6 million) in price, conversion and roll-out costs for 250 new 365discount stores and the subsequent closure of Fakta, which reported a loss of DKK 651 million (€87.3 million) during the financial year.
The company also invested $1 billion (€910 million) in a new SAP platform, Coop One, which the company says will provide 'significant gains' in the coming years.
The business was affected by changes in shopping habits as customers bought fewer items and opted for cheaper options.
Moreover, its profit margin was impacted as it did not pass on the multiple price increases from suppliers in full to consumers.
‘The Coop of the Future’
In February of this year, Coop Denmark announced the launch of a new strategy, titled ‘The Coop of the Future’, which will see the establishment of the country’s largest supermarket chain trading under the Coop banner.
The company hopes 2023 to be better than 2022, but has warned of low consumer confidence.
Coop Denmark CEO, Kræn Østergård Nielsen said, "With large investments in the three chains, with a state-of-the-art IT platform rolled out for all product areas and stores, the strongest own brands and an aggressive focus on responsibility, we will in the coming years become even more attractive to customers, and thus once again grow and win market shares."
As of the end of 2022, the group had 1,977,986 members. Coop and the independent co-operative associations welcomed 42,174 new members during the year.