The Co-operative Group is planning a significant expansion after proposing a takeover of a struggling southern supermarket – which will save 300 stores and nearly 5,000 employees
The Co-op has shared a proposal to help a struggling supermarket chain as 300 stores are at risk of closing.
An annoucment to the London Stock Exchange said the retailer wants to support Southern Co-op, that currently employs 4,500 members of staff.
Some Southern Co-op stores were forced to close in a bid to cut costs, and after long-running conversations, is now hoping to be saved with the help of the Co-op to “strengthen opportunities”.
However it will need to be approved by members to go ahead. Southern Co-op members will be given a vote on the proposals, which, if approved by members and regulators, are expected to go ahead in the final quarter of 2026.
The Southern Co-op was founded in 1873 in Portsmouth, and operates with around 300 stores, funeral branches and Starbucks franchises across the south, while The Co-operative Group is based in Manchester, with over 2,300 food stores, funeral homes across the UK and runs legal and insurance services too.
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The merger would happen through a process called “transfer of engagements”, which allows two societies to come together. Historically, Southern Co-op is an independent regional co-operative, while The Co-operative group (The Co-op) is the UK’s largest national co-operative.
But the landmark proposal of the merge of to help alleviate financial pressures the Southern Co-op is facing. Debbie White, Chair of The Co-operative Group explained how the move will “bring together over 300 years of co-operative experience” and provide “new and strengthened opportunities for members, customers, colleagues and suppliers of both of our co-operatives.”
While Ben Stimson, CEO of Southern Co-op, noted: “The Co-operative Group shares our values and our commitment to democratic membership, ethical sourcing and fair reward, as well as our dedication to supporting local communities. By coming together, we can secure the co-operative future of Southern Co-op as part of a stronger combined Co-op Group, whilst creating an even stronger voice nationally and internationally to advance the co-operative cause.”
For many people, it may be hard to differentiate the Southern Co-op stores, because they use the national “Co-op” branding but you will find the stores in:
- Central South: Hampshire (their home base in Portsmouth), Isle of Wight, West Sussex, East Sussex, and Berkshire.
- South West: Devon, Cornwall, Somerset, Dorset, Bristol, and Wiltshire
- South East: Surrey, Kent, and Buckinghamshire.
- London: Several convenience stores are located within Greater London.
It comes after the Co-op has revealed it is still battling thousands of attempted cyber attacks a week, as it warned a previous hack could wipe £120million off profits. The food-to-funerals group fell victim in April, but says it largely nipped the attack in the bud. Despite that, the fall-out still saw it lose more than £200million worth of sales in the six months to July, with the impact potentially still being felt into next year, when this cost could reach £300million.
It has already knocked £80million off profits, with the figure estimated to be £120million over the whole year because some of its systems are still back up to normal.
Rob Elsey, Co-op’s chief digital and information officer, told the Mirror: “We successfully prevent thousands of attacks on a weekly basis. As we build higher walls, the attackers are building higher ladders.
“What we saw here was a sophisticated, a persistent and a multi-staged cyber attack. It was very orchestrated and very well planned and meticulously executed. But we invest continuously in our cyber defences and we do that in a layered way because no organisation is impenetrable, so how you detect and you respond is incredibly important.”
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