Coop Sweden has turned all minus to plus and reports a profit for 2015 – a historic achievement according to the company.
“It shows that the strategic comprehensive approach we have taken on all our operations provide powerful performance and we are even ahead of schedule in many areas,” says Sonat Burman-Olsson, President and CEO of Coop Sweden.
Coop Sweden’s annual report is filled with positive vibes this year, as the turnaround has come earlier than announced.
Operating income before items affecting comparability amounted to 158 million SEK (-104 million pro forma 2014), an improvement of 262 million. Operating profit amounted to 140 million SEK (-306 million), an improvement of 446 million.
This year’s total profit amounted to 167 million SEK (-49 million)
In addition, Coop writes that it has created values for more than 400 million SEK to the independent consumer unions by including efficiency in purchasing, logistics and category.
Coop Sverige’s retail sales amounted to SEK 17 265m (17 876, pf), a decrease of 3.4 percent. The decline in sales is largely a consequence of the closed stores, price reduction, conversion of reference stores and decisions to reduce the range within the Nonfood and settlement construction
Totally Coop Sweden sold 79 stores to independent consumer associations. 8 stores were closed and two shops reopened.
“Our improved performance is a result of all the initiatives implemented to date within the framework of our plan and strategy for the years 2015-2017. We have a clear plan with an overall objective to ensure the profitability of the Group by the end of 2017. The work is done with high speed and it is with great pleasure that I note that we are already in the first year in our journey of change can show a positive result. “, comments Sonat Burman-Olsson, which before the Coop CEO-assignment was the CFO of ICA.
She emphasizes that the result is only generated by Coop Sweden AB’s wholly owned stores (243 of Coop’s total of 659 stores) and the effectiveness of the central system, while revenues are covered by both company-owned stores, and wholesale trade against the independent consumer associations stores.
“We have implemented a number of price initiatives, including the largest price fall in Coop’s history. To enhance our store operations and give us the best operation we have initiated a comprehensive store efficiency programs. We have professionalized the way we work with our categories and business partners and we have set a new range model that creates inspiration and at the same time efficiency. We already know that we have a great need to upgrade our network of stores. Parallel to this, we are investing in our new format strategy – Big Coop, Coop and Little Coop. In 2015, we opened 14 stores reference in any of these formats and within a few years, all our stores will be converted to the new format.
She also mentions a new marketing platform, major efficiency in logistics and a new organization, management and governance structure.
“We have shown that Coop can be a viable business and to create simplicity, love of good food and value for money, we put our customers in mind.”