Scotmid warns of ‘uncertainty’ ahead after ‘Covid-impacted’ results

Scotmid Barton exterior

Scotmid has seen profit and turnover drop in its latest financial results for the year ending 29 January 2022, impacted by the Covid pandemic.

Overall, the company saw trading profit for the 52 weeks ended 29 January 2022 fall by 11% year-on-year to  £5.7m, while the total turnover for 52 weeks was £403m, down £6m on the 53 weeks last year.

Food convenience saw a reduction in trade compared to the lockdown period in early 2020, driven by the later lift in restrictions in Scotland, as well as major disruptions in the UK supply chain in 2021, including a severe shortage of HGV drivers, staff shortages, and Brexit-related disruption.

“This worsened during the Omicron spike with very high levels of sickness and self-isolation due to the transmissibility of the virus. There were also some specific issues relating to the co-op supply chain as it invested for the future,” the report reads.

However, the retailer said it has “successfully” delivered the programme of investment in the store estate, with several major refits having been complete, along with investment in environmentally friendly fridges and a new store in Perth.

“The successful development of our food-to-go offer continued, supported by investment in new counters, ovens, dishwashers, and digital screens. Other food-to-go development work included the opening of the ‘Kitchen’ in our Uddingston store,” the retailer added.

Other investments in technology included the rollout of electronic shelf-edged labels to 40 stores, along with a new food-to-go allergen labelling solution to ensure compliance with Natasha’s Law, which came into force during the year.

What’s more, the Snappy Shopper home delivery service has been expanded to more stores, following rise in demand through the peak of the crisis.