The funeral business is also included
The Co-op Group has made an announcement that affects the future of hundreds of stores. It is set to acquire Southern Co-op in a move that would see hundreds of food stores and funeral parlours added to the retail behemoth’s portfolio.
The two societies have unveiled proposals requiring member approval before proceeding. The arrangement would see Southern Co-op’s 300,000 members join the Co-op Group’s seven million-strong membership base, alongside approximately 300 food outlets, funeral branches and Starbucks coffee shops.
The Co-op Group would also acquire three crematoria through the transaction, allowing it to re-enter the expanding cremation market to complement its existing funeral operations.
Neither organisation disclosed the financial terms of the prospective deal.
Southern Co-op, which has its headquarters in Portsmouth, predominantly operates throughout southern England, including London, trading under the Co-op Food and Welcome brands.
The organisation was established in Portsmouth as a co-operative society in 1873. Co-operatives are enterprises owned and governed by their members, who have a voice in the business’s operations.
Members of Southern Co-op will be balloted on the proposals, which, subject to member and regulatory approval, are anticipated to be completed in the fourth quarter of 2026.
The combination would be executed through a mechanism known as “transfer of engagements”, which permits two societies to unite.
Ben Stimson, chief executive of Southern Co-op, stated the transaction would safeguard the organisation’s future, having recently faced declining profitability and rising operational expenses.
He said: “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.”
Kate Allum, Co-op Group’s interim chief executive, said: “Joining forces across Co-op Group and Southern Co-op will create new opportunities for members to have access to a greater range of benefits across a wider society, with more trading opportunities, and in turn more benefits for them and their communities.”
