The Co-operative Group saw pre-tax profits jump 48.3 per cent to £545.7 million in what turned out to be a record-breaking 2010 for the company.

Group sales totalled £13.7 billion, up 9.1 per cent on the previous year.

The integration of the Somerfield business in its food division and Britannia in its financial services arm is on track, the company said. In fact, it expects all stores to be operating under the Co-operative brand by April and said it will be adding 350 more outlets by 2013, creating around 7,000 jobs.

The group has been carrying out in-store electrical retailing trials with “pods” offering the full internet range of electrical goods in its food stores.

Despite a strong performance in 2010, group chief executive Peter Marks warned: “We had hoped to see signs of economic recovery by the start of 2011, but the downturn is clearly biting deeper than we had expected.

“We now anticipate challenging trading conditions through to the end of this year and into 2012.”

Mr Marks also revealed that the group planned to launch “a one stop shop” through which the group can advise those who want to set up a co-operative.

Mr Marks said he welcomed the interest shown in the co-operative business model by mainstream political parties last year but noted that there had been little in the way of action.

“What is now needed, to take Big Society thinking from mere rhetoric to something tangible.”

He said the Co-operative Group was committed to spending £11m to support the growth and development of co-operative businesses and schools in the UK.