Board of Channel Islands Coop proposes 2% customer dividend following 'challenging trading period'

The Coop is one of the Channel Islands major supermarkets. Credit: ITV Channel

The Board of Channel Islands Coop has proposed to half its customer dividend for 2023 after announcing a net loss of £1.8 million.

Shoppers were warned in February that the payment could be scrapped entirely, a move described by Chief Executive Officer Mark Cox at the time as "unprecedented".

It caused outrage among members with queues at some stores' customer service desks and hundreds of critical comments on social media.

There were queues at some customer service desks as shoppers raised questions about their dividend payments. Credit: ITV Channel

In an email to members on Friday 3 May, Mr Cox says: "Like many businesses, CI Coop faced substantial hurdles due to unprecedented levels of inflation, interest rate hikes and cost of living increases placing a significant pressure on our operations.

"Earlier this year, I warned of the possibility of no dividend or a reduced dividend. I'm now pleased to announce that at the upcoming Annual Members Meeting in May, the Board will propose a 2% dividend relating to our 2023 trading year, on which you will be invited to vote."

He adds that the Coop's turnover for this period was £208.5 million and they remain in a "solid financial position".

Mr Cox also reiterates that dividends or funds held in members' A and B share accounts are unaffected by the 2023 dividend discussions and will continue to gain interest as normal.

Members will be asked to vote on the proposed dividend payment at the organisation's Annual Members Meeting which will take place on consecutive evenings across Guernsey and Jersey:

  • Tuesday 21 May: Guernsey's St Pierre Park Hotel, 6:30pm

  • Wednesday 22 May: Jersey's Radisson Blu Waterfront Hotel, 6:30pm

If the 2% offer is rejected, a better deal will not necessarily be made.

Although the CI Coop is owned by its members, the board makes the final decision on what the organisation can afford to pay.

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