CI Coop customers queue for cash after dividend alert

Coop members queue at the St Helier store following the dividend announcement

Customers of the Channel Islands Co-operative Society (CI Coop) queued to withdraw funds from the Jersey store following the firm's warning of a possible 2023 dividend suspension.

The retailer said board members would vote in May on whether to suspend or reduce dividends after a "challenging year".

It said all savings, and dividends accumulated before 2023, were safe.

Stevie Ocean was among customers queuing, share books in hand.

Mr Ocean, who said he would withdraw his dividend from previous years, branded the situation "unfair".

He said: "I thought if this is going to happen I'm not leaving it in there because they might take it.

"I'm not going to give them the opportunity to turn round and say well you haven't taken it out so you're not going to get it."

Julie Destro said it was a sad situation

Julie Destro, 63, a civil servant, said: "I think it will have quite a large impact on the elderly people.

"As a local company I think it's quite sad that they might have to stop their dividends."

Carl Walker said customers were queuing 'with share books in hand'

Carl Walker, chairman of Jersey's Consumer Council, said: "I've been speaking to Coop customers this morning, who are queuing up with their share books in their hands withdrawing their money which they've saved up in there over the years because they are angry at the decision that the Coop surprised everyone with."

He added: "They're angry that the announcement hasn't come sooner or that the announcement isn't warning them that maybe next year's dividend would be withheld."

He said it was "unfair and immoral" to take a dividend from people "consciously building it up" but conceded the retailer would not be taking action "if it didn't need to".

Customers queued at the Coop on Wednesday following the retailer's announcement

Members were due to vote on the issue in May, the CI Coop said.

It cited "significant ongoing strain" of global supply chains, raw ingredient prices, energy costs and rising inflation had hit last year's profits.

Analysis by BBC Guernsey's John Fernandez

For the people I've spoken to today, "divvy" is often the reason they shop at the Coop.

Some see it as a small savings account that they can use for Christmas presents at the end of the year or a treat at birthdays.

Many specifically choose the shop as they see it as a discount which pays out later in the year.

And while a lot of people are understanding about why the Coop may be about to do what they expect, there's certainly a portion of people I've spoken to who say they feel let down after being "promised" in their words, a payout, no matter how small.

Mark Cox, Coop chief executive, said: "I absolutely recognise that this is really hard.

"No decision has been made at the moment. We wanted to be as honest and transparent as we could to members.

"There may be a need for us to review the dividend."

He added members needed to "hold on" as the financial accounts are worked through, but said he understood it was "a difficult message".

Mr Cox said members' money in their savings account was safe and baby vouchers would still be available.