Co-op pushes £200 million cost cuts amid leadership turnover and Southern Co-op takeover

The Co-op has undergone a turbulent start to 2026, marked by the departure of chief executive Shirine Khoury-Haq in March, former chair Debbie White in August, and managing director Matt Hood earlier in the summer. Facing a £126 million underlying pre-tax loss for the year to 3 January and the lingering effects of a major cyber attack, the retailer announced a £200 million cost-saving programme aimed at stabilising its balance sheet.

Simultaneously, it is pursuing a takeover of Southern Co-op, which would bring roughly 330,000 new members and about 300 food, funeral and Starbucks locations into its network. The Competition and Markets Authority has opened an inquiry, focusing on nearly 20 convenience stores and two funeral sites where competition could be substantially reduced, and has set a September 22 deadline for remedial measures. Industry expert Jonathan De Mello notes that the forthcoming half-year results will be a key indicator of the Co-op’s recovery under its new leadership. The group has not yet disclosed how the savings plan will affect employment across its 2,300 food stores and 800 funeral homes.