Co-op expects fall in profits amid ‘turbulent economic headwinds’

Sales for the Co-operative Group increased 3% to £11.5bn, including a 1.3% rise at its grocery business. Photograph: Paula Solloway/Alamy

The Co-operative Group has warned its profits are likely to fall in the year ahead as the food to funerals group expects “turbulent economic headwinds, including inflationary pressures” to continue.

While that “volatile external environment” contributed to an 11% fall in profits at the 160-year-old mutual’s grocery arm, which has more than 2,000 stores, the group said underlying operating profits across the business had remained steady at £100m.