The Co-operative Group has announced a significant expansion programme with 14 new stores opening across the UK, demonstrating resilience as it recovers from a major cyber attack that impacted earnings by approximately £120 million.
Strategic Expansion Amid Challenges
Despite facing substantial challenges from April's cyber incident, the member-owned retailer is pushing forward with ambitious growth plans. The expansion includes becoming the first permanent retailer at the new Brent Cross Town development in North-West London, alongside five micro-format 'on the go' stores and a new franchise location at Lancaster University.
By Christmas, the company plans to have opened or re-opened 50 stores, contributing to more than 200 site openings and refurbishments during the current financial year. This represents an investment exceeding £200 million across their store estate, with remaining locations undergoing extensive refurbishments before reopening with updated product ranges.
Cyber Attack Impact and Recovery
The expansion comes as the group, which boasts around 6.9 million member-owners, continues to navigate the aftermath of a damaging cyber attack. The breach, which occurred in April, involved hackers impersonating employees to gain access to systems.
While the attackers created copies of company files, they were prevented from installing ransomware or causing further platform damage. Nevertheless, the incident had significant financial consequences, reducing sales by approximately £206 million and leaving many stores with bare shelves during the disruption.
Call for Business Rates Reform
Co-op Chief Executive Shirine Khoury-Haq has made renewed calls for property tax reform ahead of the autumn Budget, emphasising that business rates reform is "vital" for encouraging continued high street investment.
"We're investing in stores and communities right across the UK because we believe in the future of the high street," stated Khoury-Haq. "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."
The retailer urged the Government to deliver long-promised reforms that would provide stability for businesses of all sizes to invest and grow, highlighting that their current expansion demonstrates what's possible when companies commit to local communities.
