The Co-op is poised to take over nearly 200 supermarkets as part of a major rescue deal with its smaller regional counterpart, Southern Co-op. The merger, which would see over 300 food stores, funeral homes, and coffee branches become part of the national group, has received overwhelming support from Southern Co-op members.
Decisive First Vote
In a Special General Meeting held on May 6, more than 97.7% of Southern Co-op members voted in favor of joining forces with the Co-op Group. The move is seen as a way to secure the future of the regional chain and create a stronger combined entity.
A second meeting is scheduled for May 21 to officially confirm the transfer. A Southern Co-op spokesperson told The Grocer: "This is the first step in the proposal to join forces with The Co-op Group and create a co-operative society with greater scale, resilience, and impact for members, customers, colleagues and communities across the UK."
Leadership Perspectives
Ben Stimson, Southern Co-op's chief executive, previously stated that the deal would safeguard the business's future. 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, interim chief executive of the Co-op Group, added: "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."
Recent Challenges
The merger comes after a difficult period for the Co-op. Former chief executive Shirine Khoury-Haq stepped down on March 29 following a challenging year that saw the company report a £125 million loss after a cyber-security attack impacted sales. The Co-op, which has branches in Birmingham, has also faced allegations of a "toxic" workplace culture.
Kate Allum, a board member and former boss of dairy group First Milk, has stepped in as interim chief executive. The merger is expected to strengthen the Co-op's position and help it navigate future challenges.
