I wanted to follow up Steve Murrells’ message to all Co-op colleagues this morning with a specific update for colleagues in Electrical. As Steve says, we’re now proving that we’re a better and different way of doing business.
From January to the end of June we returned millions to our members and championed their communities and the issues that matter most to them. Through the 5% reward, members have received a total of £29m. And through the 1% reward £6m has been raised benefitting thousands of local causes.
In Co-op Electrical we’re now making our own contribution to creating that ‘member value’ by offering the ‘5 + 1’ Co-op rewards on selected electrical products.
The big numbers
Sales in our Electrical business were £27m (2016: £34m), reflecting delays in the launch of the new website and a very competitive market. Our decline in sales contributed to an operating loss of £2m (2016: loss of £1m).
The second half of the year is showing an improved performance as we see the results of a number of initiatives starting to come through, including: the 5+1 rewards, better marketing and improvements to the ‘customer journey’ on our web site. We’re also developing our product ranges during the second half of the year so look out for new products as we head into Christmas.
We’re continuing our review of all aspects of Co-op Electrical to improve how we reward our members and serve all of our customers. I’d like to thank you for all you’ve been doing so far this year and for your continued commitment.