The announcement comes after a difficult period for the UK-based mutual, which operates more than 2,300 food stores and 800 funeral homes. The company has faced financial pressure linked to higher costs, weaker consumer confidence and the impact of a cyber attack in 2025.
Retailer Reports Losses as Cost Pressures Continue
The Co-op recorded underlying pre-tax losses of £92 million for the six months to 4 July, compared with losses of £75 million during the same period a year earlier. According to the company, first-half losses reached £86 million, up from £50 million a year earlier, with results affected by weak consumer confidence and £78 million in extra costs, including higher labour taxes.
Interim chief executive Kate Allum said the cost-saving programme began this year as the business responded to financial pressures. She did not confirm the number of roles affected, saying the changes were “not just about jobs going but also being created”. The group employs around 54,000 people across its operations in the UK. The retailer said it was taking steps to manage costs while continuing to invest in parts of the business, including store improvements and promotional activity.
Food store sales rose by 2.6% compared with the same period last year. According to the Co-op, the comparison was affected by the impact of the 2025 cyber attack, which reduced first-half revenues by £206 million and profits by £80 million during that period. The company said recent sales growth was supported by initiatives including promotions and its Aldi price match scheme.
Co-op Faces Leadership Changes and Competition Review
The financial results follow a period of major changes for the Co-op. A cyber attack in April 2025 caused disruption for the business, and the retailer later faced claims from some employees about workplace culture. The company has said it has been reviewing its culture following those reports.
Leadership changes have also taken place. Former chief executive Shirine Khoury-Haq stepped down in March, followed by former chairwoman Debbie White in August. Managing director Matt Hood also left the business earlier in the summer.
Kate Allum said market conditions remained challenging but pointed to growth in areas such as online convenience shopping and funerals. According to PA, she said the group expected a stronger performance in the second half of the year, with sales growth and improvements in profitability.
The Co-op is also continuing with a planned takeover of Southern Co-op. The deal would add around 330,000 members to the Co-op’s existing seven million members and bring approximately 300 food, funeral and Starbucks coffeehouse sites into the group.
The Competition and Markets Authority is reviewing the proposed deal. According to the regulator, there are concerns that competition could be reduced in some local areas, and the companies were required to propose measures addressing those issues before a possible Phase Two investigation.
The Co-op said it remains focused on managing costs, supporting its operations and improving performance after a challenging first half of the year.
