Chief executive of the Co-operative Group Richard Pennycook has requested a “substantial” pay cut as his company reported a slump in pre-tax profits for 2015. In the year, food like-for-like sales grew by 1.6%, with like-for-like volumes up 5%. The core convenience business also grew ahead of market after investment in price and products, with like-for-like sales up 3.8%.

However, profit before tax dropped to £23 million from £124 million the year before. In a statement, Mr Pennycook said: "This has been a year of further progress at the Co-op as we have invested to drive the growth of our businesses. Underlying profits have increased but our priority this year has been on putting the building blocks in place for the long-term. Whether it's our investment in lowering prices, rewarding colleagues or campaigning on key issues, we are taking the right steps and the performance of our businesses and the feedback from our members shows us we are on the right track.

"We are, however, only one year into our Rebuild and whether it is driving further growth in our businesses, improving member engagement or getting back to our campaigning roots, there is still much to achieve.

"We are championing a better way of doing business for our customers and communities and working with our colleagues and members we're confident that we have a strong plan to achieve our goals."