HEART OF ENGLAND CO-OPERATIVE SOCIETY ENJOYS TRADING SUCCESS DESPITE CONTINUING DOWNTURN

In a year which saw endless profit warnings and companies going into administration, the Heart of England Co-operative Society has announced record trading surplus and increase in sales.
 
The Society achieved a trading surplus of £4.7 million, reflecting an increase of 10.8 per cent on the year before. Also, the trading surplus equated to 6.1 per cent of turnover – a milestone achieved by very few retail Co-operative societies.
 
The news comes on the back of one of the toughest years in living history for the retail industry. Even with the government pumping some £200 billion into the economy and the Bank of England announcing the lowest interest rates in 316 years a lot of long-established, well-known chains were lost.
 
Such a performance allows the Heart of England Co-operative Society to re-affirm itself as one of the top performing retail Co-operatives in the UK. Its trading surplus level stands the Society in good stead against many of the country’s biggest retailers.
 
Food sales rose by 4.7 per cent like-for-like, while non-food increased by 7.2 per cent. The Funeral Division maintained its market share and recorded a modest increase in like-for-like sales.
 
Ali Kurji, Chief Executive of the Society, said: “There is no question that this country is still in economic turmoil, with government borrowing at its highest and the country in record levels of debt. And the effects of this will be felt for many years to come.
 
“Here at the Society we are pleased to announce we have continued to operate with no borrowings. Not only this but we have continued to invest in our ongoing renewal programme, spending more than £16.7 million between 2005 and 2010.
 
“Our renewal and rebranding programme will continue in 2010 and beyond. The Board of Directors has already approved a number of upcoming projects.”
 
Over the past 12 months the Society has relocated its Cedar Road Lateshop into a brand new shopping complex in Camp Hill, Nuneaton. Since the relocation sales in the new store have shown a significant increase. The Earlsdon and Southam stores were the first two to be re-branded as Co-operatives. As with all refurbishments throughout the Society both Earlsdon and Southam are equipped with energy efficient lighting and refrigeration. Customer feedback to both stores has been very positive and both stores have shown double digit sales increases.
 
The Non-Food Division reported a 12.6 per cent increase in electrical sales alone. Overall the Division reported a sales increase of 7.2 per cent, supported by successful members’ events and discounts.
 
The funeral market in general appears to be in decline. But the Society’s Funeral Division is pleased to report it has retained its market share. The performance of the Asian Funeral Home in Foleshill, Coventry, exceeded all expectations and the new Funeral Home in High Street, Daventry, has also been very well received. Investments over the past 12 months include three new Jaguar hearses and three limousines, collectively worth £540,000. The Society also purchased two new Mercedes Benz ambulances worth a further £55,000.
 
As a reward for their hard work throughout the year the Society will reward
staff with a little extra in their ‘paypackets’ as part of its annual profit-related bonus scheme.
 
This will be the 13th year running that, thanks to the hard work and dedication of our 1,000-strong staff, the Society has achieved its profit target decided by its Board of Directors.
 
As a reward all employees who have been with the Society for a year or more will receive 125% of their wage in half price vouchers to spend within the Society as they please. Those who have been with the Society for six months to a year will receive the equivalent of half a week’s salary. Employees will also receive up to a maximum of £330 in Society full price vouchers.
 
The vouchers, paid to all staff, whether Saturday assistants or management, are redeemable in Food, Non Food and Travel and can even be used in conjunction with the Members Calendar discounts, leading to massive savings on large items such as furniture and electrical goods.
 
Mr Kurji added: “As a Society we are only as good as our staff and once again I would like to issue a personal thank you to every single member of our team and hope the vouchers go some way to demonstrating our gratitude.
 
“Together we are helping to steer this Society through some very rough times but if we all pull together we can continue to succeed, as we have been doing.”