Half Year Update & Childcare Industry Awards

Earlier in the week I wrote to you all about our performance at the Half Year and our new partnership with Octopus Energy. You can read our Half Year report by clicking here.

From the outset, I insisted that we be as open and transparent as possible about our losses as that is the Co-op Midcounties way. So, I wanted to thank all of you who have given feedback on our performance via Colleagues Connect.

This week I attended the first of our Half Year Meetings in Swindon, Gloucester and Shrewsbury. At the meetings, I put our performance in the wider context of the current political and economic landscape, and I wanted to share this with all of you. We are now beginning to see the very real impacts of the continuing uncertainty around Brexit with UK retail sales falling for the first time amid the strong prospect of a no-deal Brexit. I with other retail Chief Executives have been talking to the CBI about this and the Executive continues to meet every week to mitigate the impacts on our business.

In the High Street John Lewis has posted a £26m loss, Boots has announced it will close around 200 stores, Mike Ashley is rumoured to be planning to shut down the majority of House of Fraser stores after Christmas, Thomas Cook has gone out of business and  probably most significantly,  given of our decision on the Energy business , British Gas has posted a half-billion pound loss. In the same half-year period last year, it reported a nearly half-billion pound profit.

So, we need to view our financial performance in the context of the wider markets in which we trade, in the light of a stuttering UK economy and rapidly declining consumer confidence. Entering into a strategic partnership with Octopus Energy and writing off our Energy business as a ‘discontinued operation’ was an extremely important but difficult decision for our Board, but it was something we had to do for the sake of the wider Society and I’m glad to say that we are now on a much more secure financial footing as a result.

I’m also pleased to say that through our partnership with Octopus we will continue to champion community energy schemes, promoting solar and wind power, without the risk of further losses. At the Half Year meetings, I attended this week, the Executive and I got some thoughtful questions on our Energy business and other trading groups and as a democratically owned Society, it is absolutely right that Members get the chance to question us on what is happening to their business.

I finished the meetings by saying that I was proud to announce that nearly all our CSR Steering Wheel measures from trade with members, to saving energy are on or above target. 

 

Member Claude Mickleson, 96, who won the Gloucester Fairtrade Hamper

Afterwards, I got the chance to meet some of our charity partners from the Big Breakfast in Swindon who help feed the homeless, to the Aston project who are members of the police inspiring young people in Gloucestershire. At the Gloucester meeting, I was particularly pleased that one of our oldest members Claude Mickleson won the Fairtrade hamper - he's 96 years old and has been a member for over 20 years! Meeting our charity partners and listening to Members feedback always makes me feel proud to be your Chief Executive. We are a great business. We have made some big and difficult decisions but as a result, we can look to the future with renewed confidence. l will be attending all the remaining Half Year meetings and look forward to reporting back on them in my next blog.

 

Co-op Childcare nominated in industry awards

The NMT Nursery Awards is an annual event organised by Nursery Management Today, the leading business publication in the nursery sector. The Awards are designed to reward excellence in childcare and celebrate the very best people in the Nursery Sector.

I am delighted to announce that Co-op Childcare are to be finalists for 2 of the awards; ‘Nursery Group of the Year Award’ and ‘Nursery Team of the Year Award’. Burton nursery is a finalist for the Nursery Team award having impressed the judges with their inclusive provision and inspiring team – with the award recognising chains in the sector that have shown excellence in their practices.

I am also proud that Co-op Childcare showcased their dedication to child safety by becoming the first large chain to be ‘Millie’s Mark’ accredited for ensuring that every colleague is trained in paediatric first aid. The team is also pioneering a group-wide intergenerational programme to create meaningful links with the older generation in the community and are championing environmental issues with the group-wide Eco-Schools accreditation. I know that Childcare are over the moon to have been recognised for their commitment to improving the outcomes for children and building successful links with the wider community, and I wish them the very best for the Awards.

The winners will be announced on 30^th November at the NMT Nursery Awards event in London – so watch out for news in my blog next month.

 

Welcome to Rupert Newman

Finally, I am delighted that Rupert Newman has now joined us in the newly created role of Chief Food Retail Officer. Rupert has spent almost two decades in grocery retailing with Sainsbury’s and Asda, including regional managing director and operations roles. He joined us from the pharmaceutical giant, McKesson UK (previously Celesio), where he had responsibility for its £2.3bn UK sales operation, and he has previously led retail projects for Alliance Boots.

In the new role, Rupert has responsibility for the overall performance of the Food Retail Group and will develop strategic objectives which are consistent with, and aligned to, the Board’s Imagined Future and the Group’s wider strategic objectives.

He has the operational and leadership track record to build on our recent successes and continue the growth of our food business for the benefit of colleagues, customers and members.

I’m sure you’ll join with me in making Rupert feel welcome at the Society.

 

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