Scotmid reports slump in operating profits

Scotmid store Scotmid described its last financial year as "challenging"

Related Stories

Scottish retailer Scotmid has warned it does not anticipate "a meaningful retail upturn" this year after reporting a slump in operating profits.

The Edinburgh-based co-operative society said operating profit before exceptional items fell by 25% to £4.5m in the year to 25 January.

It attributed a "challenging year" to consumer confidence remaining low in its core markets.

Scotmid's key markets are Scotland, the north of England and Northern Ireland.

The society said like-for-like retail sales were "ahead of the Scottish market", adding that revenues benefited from its merger with Penrith Co-operative last year.

The merger is estimated to have lifted total sales by £3m to £381m.

'Extremely challenging'

According to Scotmid, its Semichem stores outperformed the market with "the benefit of the introduction of tobacco".

But it added that the high street non-food retail sector, particularly in Northern Ireland, had proved "extremely challenging".

In January, Scotmid announced plans to close seven Semichem outlets and all six of its Fragrance House stores, with the loss of about 90 jobs.

Start Quote

At this time last year I predicted a challenging year with a static marketplace and this has been the case”

End Quote John Brodie Scotmid chief executive

In its annual report, Scotmid reported that its non-retail businesses continued to make progress, with its property division showing good growth.

It funerals arm also expanded with the opening of another three funeral homes.

Scotmid chief executive John Brodie said: "At this time last year I predicted a challenging year with a static marketplace and this has been the case.

"Consumer confidence in our core markets remains low and this is borne out by the Scottish Retail Consortium recording a like-for-like sales decline for the 2013/14 year."

He added: "The reported economic recovery appears to be specific to certain locations and sectors and is still not evident in our retail markets (Scotland, Northern Ireland and Northern England).

"There would normally be a time lag before any recovery filters down to consumers and so I do not anticipate a meaningful retail upturn in 2014."

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Scotland business stories



  • OrangemanPunctured pride?

    How would N Ireland's Orangemen feel if Scotland left the union?

  • MarchionessThames tragedy

    Survivors and victims' families remember Marchioness disaster

  • Sheep on Achill IslandMass exodus

    Why hundreds of thousands of people have left Ireland

  • A teenaged mother in the Zaatari campUntold misery

    The plight of Syria's refugee child brides

  • Michael MosleyMeat feast?

    Which is the best eco option - eating beef, chicken or mussels?

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.