ive Group has had an ignominious past few years, yet under the stewardship of Steve Murrells, their fortunes have changed significantly."It could be one of the biggest and best turnarounds in corporate history," Murrells said, as he contemplated the Co-operative Group's renaissance following controversy and financial mismanagement.
It seems quite likely now that he might be as instrumental in the Co-op's reconstruction as Paul Flowers was in its downfall. The turnaround in the company's sales has primarily been in food, which accounts for 80 per cent of its business.
Murrells has both improved results, and slowly reinstated the integrity of the company. "The brand was a sleeping giant that had lost its way," he said of his decision to join the Co-op, departing from Danish bacon co-operative Tulip. "To be part of a turnaround team that could reconnect with a nation was a challenge I found compelling."
He is positive about the improved ethical reputation of the Co-op:
"Stores don't have to be a profit centre," Murrells suggested as one avenue the grocer could go down. "You could put everything back into a community and create a virtuous cycle."
When Murrells, a former Sainsbury's and Tesco executive, joined in the summer of 2012, trading was highly disappointing, with like-for-like sales down 5 per cent. The scenario is much healthier today with the chain seeing growth of 1 per cent in the year to date and the convenience business at underlying growth of 4 per cent. "That feels like the start of the turnaround," Murrells declared.
