The Co-op warns of future challenges as sales flatline and profits slashed

manchestereveningnews.co.uk:

The Co-op has warned it will continue to face challenges in the future after revealed its profits were cut by £37m during the first half of its financial year.

The Manchester-headquartered group has reported pre-tax profits of £7m for the six months to July 2, 2022, compared to the £44m it achieved during the same time in 2021.

It also confirmed that its revenue had stalled at £5.6bn. The results come after the Co-op announced in July plans to cut 400 jobs, with the majority based at its head office in Manchester. READ MORE: Click here to sign up to the BusinessLive North West newsletter The group blamed a 'tough trading environment' for the move as well as the rise in inflation.

It also said will bring forward planned cuts as well as reduce roles by not filling vacancies. In a statement, the Co-op said that 'decisive management action' had been taken to reduce operational costs, improve operational performance and prioritise capital expenditure.