Co-op to open at least 120 more grocery shops after profits rise five-fold

Mutual reports increase from 28m to 161m, but says ministers layering costs' on retailers could hit high streets

The Co-operative Group plans to open at least a further 120 grocery shops this year after profits rose more than fivefold, but told the government that layering costs" on retailers could hit high streets and communities.

The mutual, which owns more than 800 funeral parlours and an insurance and legal advisory business as well as operating more than 2,000 convenience shops, said changes to employers' national insurance contributions (NICs) and packaging regulations were expected to add 80m to its costs this year. It also lost 80m to shoplifters last year despite spending millions on new security measures.