UK: The Co-op Group suffers 50% profits drop

British retailer Co-operative Group has seen its profits more than halved to £17m in the first half of 2016, as it suffers the effects of new business strategy.

The Co-op Group has said that the loss in profit was expected after the mutual decided to increase its investment in the grocery business, raise wages a further write-down in the value of its bank stake.

A consumer shift from big supermarkets to local convenience stores has benefited the British retailing group, which has seen its food business expand faster than most of its competitors, reports the Telegraph.

The Co-op has around 2,600 convenience stores across the United Kingdom, after adding 30 new sites in the first six months of 100 that were planned for 2016.

Workers in food stores have been given an 8.5% pay increase to take them ahead of the National Living Wage threshold.