The Co-op Group has confirmed it will open or refurbish 50 stores before Christmas, aiming to revitalise its presence on British high streets after a costly cyber attack earlier this year. The retailer’s renewed investment push comes as it also calls for urgent reform of business rates to enable further growth across the sector.
This development follows months of operational turbulence for the food and convenience chain, which operates over 2,300 stores nationwide. With a membership base of around 6.9 million people, the Co-op has framed its recovery and expansion as a commitment to both community support and economic stability.
Retail Expansion amid Digital Recovery Efforts
The latest announcement brings the total number of Co-op store openings and refurbishments this financial year to more than 200, supported by a £200 million investment across its retail estate. According to the group, this includes 14 new stores, five of which are described as micro-format ‘on the go’ outlets targeting urban commuter areas. A notable addition is the first permanent retail presence at the Brent Cross Town development in London, as well as a new franchise store at Lancaster University.
The remaining sites will involve extensive refurbishments of existing locations that had been temporarily closed. These stores will re-open with redesigned interiors and an updated product offering.
According to Co-op, these plans reflect a long-term commitment to bricks-and-mortar retail, even as the company continues to recover from a damaging cyber incident. The attack, which occurred in April, involved hackers impersonating employees to access internal systems and steal member data. Although the breach did not result in ransomware deployment, the group reported that it led to empty shelves, disrupted operations, and had a measurable impact on performance.
In financial terms, Co-op estimates the cyber attack has reduced annual earnings by approximately £120 million and impacted sales by an estimated £206 million. A forensic investigation determined that a copy of an internal file had been extracted, though the breach was contained before more serious infiltration could occur.
Pressure Mounts for Business Rates Reform
In parallel with its recovery efforts, Co-op has renewed calls for government action on property taxation, ahead of the upcoming autumn Budget. The company argues that outdated business rates are stifling investment and deterring growth, particularly for independent and small-scale retailers.
Shirine Khoury-Haq, Chief Executive of the Co-op Group, reiterated this position in a public statement earlier this week. “We’re investing in stores and communities right across the UK because we believe in the future of the high street,” she said. “But sustained growth needs certainty. 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.”
According to Co-op, the government has an opportunity to provide the long-promised structural changes that would enable retail businesses to invest without being burdened by disproportionate property tax obligations. The group argues that doing so would not only stabilise high street commerce but also create the foundation for further employment and regional development.
