The Co-op has revealed ambitious plans to open and refurbish dozens of stores across the UK while issuing a stark warning that business rates reform remains crucial for retail sector survival.
Major Store Expansion Programme
Britain's member-owned retailer confirmed 50 shops will either launch or relaunch before Christmas, representing a significant acceleration of its physical store strategy. This latest wave of openings means the Co-op has now renovated or opened more than 200 sites during the current financial year, with total investment exceeding £200 million across its shop portfolio.
The expansion includes 14 completely new outlets, featuring their debut as the first permanent retailer at London's Brent Cross Town development, five compact 'on the go' format stores, and a new franchise location at Lancaster University. The remaining stores involve extensive refurbishments of existing locations that had been temporarily closed, with these sites returning with refreshed layouts and updated product ranges.
Recovery from Cyber Attack Continues
The expansion initiative comes as the mutual continues its recovery from a significant cyber attack in April that substantially impacted its operations. The Co-op disclosed in September that the security breach would reduce its annual earnings by approximately £120 million, with affected sales estimated at £206 million.
The attack saw criminals impersonate staff members to gain access to employee accounts, resulting in empty shelves across stores and stolen data. Fortunately, the hackers were prevented from escalating their attack further and installing ransomware after creating a copy of one company file.
Urgent Call for Business Rates Reform
Ahead of the autumn Budget, the retailer has intensified its campaign for property tax changes, arguing that reform is essential for sustained high street investment. Co-op Group chief executive Shirine Khoury-Haq emphasised that while the mutual continues to invest in communities nationwide, the government must provide the certainty needed for long-term planning.
"Business rates reform is vital if retailers – especially the 99% who run small stores – are to plan with confidence, protect jobs and keep local economies thriving," Khoury-Haq stated. "The Government now has an opportunity in the autumn Budget to do its part by delivering the reform that's long been promised."
The Co-op, which operates over 2,300 food stores and counts approximately 6.9 million members, positions itself as demonstrating what businesses can achieve when committed to local communities, while urging ministers to match this commitment with supportive policy measures.
