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

Warning for year ahead comes as profits fell 11% at grocery arm but remained steady across rest of group

The Co-operative Group has warned its profits are likely to fall in the year ahead as the food to funerals group expects the 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.