A strong performance from the food division helped the Co-operative Group to lift gross sales above £10bn ($15bn) for the first time last year.

It was the first full year of results following the merger of the Co-operative Group and United Co-operatives in mid-2007. So far, 700 of the 2,200 food stores have been refurbished and rebranded and another 700 will receive similar treatment this year. The group is also expected to benefit from the net gain of 650 stores following the acquisition of Somerfield, completed in February.