Coop Sweden Sees Increase In Sales, But Profits Take A Hit
Coop Sweden has posted net sales of SEK 32.18 billion in 2017, representing growth of 2%, compared to the previous year.
However, the Swedish retailer saw operating profit for the year fall from SEK 172 million to SEK 35 million, citing a weak start to 2017 with a declining sales trend, as well as increased investment.
In spite of this decline, Coop pointed out that this is the third year in a row that it has generated profit, and that the group's new business model will enable long-term, stable profitability for its wholesale and retail operations in Sweden.
"It is gratifying that we have delivered a profit for the third consecutive year," said Magnus Johansson, CEO of Coop Sweden.
"The goal for 2018, which has been launched strongly, is to break down the negative trend and increase sales," Johansson continued.
Coop Sweden says that it is continuing to roll out its new-format stores, and last year, 74 outlets were refurbished, following an investment of SEK 564 million.
The group now has 237 stores across Sweden, including 114 Coop supermarkets, 15 Lilla Coop, 30 Stora Coop, 34 Coop Nära, 28 Coop Konsum, five Coop Extra and ten Coop Forum, as well as its online retail business.
Johansson added that the group's best stores have started to gain market share, and that the retail business as a whole is set to increase its share in Sweden this year.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.