Profits at the Co-operative Group have fallen by a third after its food stores suffered amid "fierce" competition from supermarkets and its banking arm was hit by the recession.
The group, which last year admitted it was battling the toughest conditions for 40 years, said its 3,000-strong food store division was also hurt by the wet weather as people drove to supermarkets rather than walk to local shops.
The Co-operative Group has previously admitted it is battling the toughest conditions for 40 years Credit: David Cheskin/PA Wire Underlying sales in the division fell 1.2% in the 26 weeks to June 30, whileoperating profits dropped 16% to £119 million.
Its banking division, which has agreed to buy 632 branches from Lloyds, also felt the pain, with operating profits down 67.9% to £36.9 million as it bore the brunt of the UK's double-dip recession.
With its two biggest divisions suffering, overall group profits fell 34% to £174 million.
