Co-op to Open 50 New Stores by Christmas Amid Cyber Recovery

The Co-op has announced plans to open or refurbish a total of 50 stores by Christmas, marking a significant step in its recovery following a severe cyber attack. This initiative will enhance its presence and support local economies while addressing the challenges posed by recent disruptions.

As part of its expansion strategy, the Co-op is set to invest over £200 million across its store estate, which includes more than 14 new openings. Among these, the company will launch its first permanent retail outlet at the new Brent Cross Town development in London. Additionally, five new micro-format ‘on the go’ stores will be introduced, along with a franchise store at Lancaster University. The remaining locations will undergo extensive refurbishments, reopening with a fresh look and updated product offerings.

The Co-op’s expansion efforts come as the retailer continues to recover from a cyber attack that occurred in April 2023. The incident has had serious financial repercussions, with the company estimating a £120 million impact on its annual earnings. Sales were also affected, resulting in a loss of around £206 million as reported by City AM. The attack led to empty shelves and data theft, affecting the company’s approximately 6.9 million member-owners.

According to the Co-op, the cyber criminals impersonated staff members to gain access to sensitive accounts. While they managed to duplicate some files, they were blocked from executing further attacks or deploying ransomware.

In light of these challenges, the Co-op is advocating for reforms in business rates as part of the upcoming autumn Budget. The company argues that such changes are essential for fostering further high street investment. Shirine Khoury-Haq, Chief Executive of the Co-op Group, emphasized the need for stability in the retail sector, particularly for small businesses. She stated, “We’re investing in stores and communities right across the UK because we believe in the future of the high street. 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 Co-op operates more than 2,300 food outlets across the UK and aims to demonstrate the possibilities that arise when businesses commit to their communities. The upcoming autumn Budget presents an opportunity for the Government to fulfill its promise of business rates reform, which could provide the stability necessary for retailers of all sizes to invest in their future.

As the Co-op continues its recovery and expansion, it remains committed to adapting to the evolving retail landscape while supporting the communities it serves.