Co-op emerges as one of the major festive winners

The group, which also announced the purchase of Scottish retailer David Sands yesterday, said like-for-like food sales rose 3.1 per cent in the four weeks to the end of December, including a 16.1 per cent surge in the week before Christmas.

The Co-op said its Christmas performance benefited from a 25 per cent increase in sales of its British higher welfare Elmwood turkeys, while white wine rose 21 per cent boosted by exclusive ranges and mince pie sales rose 12 per cent.

Despite the recent improvement at its food stores, like-for-like sales in the 13 weeks to the end of December fell 0.2 per cent.

This reflects quiet trading in October and November as customers saved their money for Christmas instead of starting the festive season early.

The group said the performance represents an improving trend on the first half when it reported the toughest trading conditions for 40 years.

Its online electricals business enjoyed its best ever Christmas, with sales up 18.4 per cent in the four weeks with flat screen TVs, laptops and iPods selling well.

The group, which is also the UK’s largest mutual retailer, said all its trading arms, including its funerals and pharmacy businesses, saw their performance improve in the month, with overall group sales up 3.1 per cent.

Car sales benefited from strong demand for Land Rovers.

Peter Marks, the Bradford-born Co-op chief executive, said: “These results represent an encouragingly good performance in the very competitive markets in which we operate and in continuing difficult economic times.

“Against the backdrop of financial pressures on household budgets, our focus on quality and value and the fact that our food stores are located in communities struck a chord with customers.”

In a separate announcement, the Co-op unveiled the purchase of its latest acquisition David Sands, a 200-year-old family-owned Scottish store chain.

David Sands, which employs 700 people at 28 convenience store outlets in Fife, Kinross and Perthshire, was bought for an undisclosed sum.

The acquisition of David Sands will end two centuries of tradition as an independent trader. The business was founded in the early nineteenth century by Joseph Hardie, a prominent local businessman and has remained in his family ever since.

The acquisition is part of the Co-op’s ambitious plans to expand its food store network by 300 sites over the next three years, taking on some 7,000 extra staff.

The group, which grew significantly after it bought the Somerfield supermarket chain, currently has 370 food stores in Scotland, making it the fourth largest retailer in the country.