Co-op Plans 50 New Stores Before Christmas Amid Recovery Efforts

The Co-op Group has unveiled an ambitious plan to open or refurbish 50 stores before Christmas as part of its recovery strategy following a significant cyber attack earlier this year. This initiative is expected to contribute to the company’s goal of revitalizing the high street while advocating for essential reforms in business rates ahead of the upcoming autumn Budget.

The retailer aims to launch or reopen these locations by December 2023, bringing its total store openings and refurbishments for the current financial year to over 200. The Co-op is investing more than £200 million across its store estate as it seeks to enhance its market presence. Among the new locations are the first permanent retail outlet at the Brent Cross Town development in London, five micro-format ‘on the go’ stores, and a franchise store at Lancaster University.

The Co-op’s expansion efforts come in the wake of a cyber attack that occurred in April 2023, which is projected to impact the company’s annual earnings by approximately £120 million. In addition to this financial setback, the attack resulted in significant disruptions, including empty shelves and data theft affecting around 6.9 million member-owners. Sales were negatively impacted by about £206 million as reported in September 2023.

According to reports, hackers managed to impersonate Co-op staff, leading to unauthorized access to internal systems. They created a duplicate of a company file but were ultimately blocked from deploying ransomware and launching further attacks.

In light of these challenges, the Co-op Group’s Chief Executive, Shirine Khoury-Haq, emphasized the importance of government support for business rates reform. 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 is urging the government to act on promised reforms in the autumn Budget, which could provide the stability needed for retailers of all sizes to invest and grow. This call for action underscores the retailer’s commitment to its communities and its belief in the potential for a thriving high street economy.

As the Co-op moves forward with its plans, it continues to navigate the challenges posed by the cyber attack while focusing on revitalizing its store network and supporting local economies through strategic investments.