The Co-op Group is set to significantly expand its retail and funeral services through a proposed takeover of Southern Co-op, a move that would add hundreds of stores to its portfolio. The deal, subject to member approval, would integrate Southern Co-op's 300,000 members into the Group's existing seven million-strong membership.
The acquisition encompasses approximately 300 food, funeral, and Starbucks outlets, as well as three crematoria. This marks the Co-op Group's re-entry into the crematoria market, complementing its existing funeral services. Financial terms have not been disclosed.
Southern Co-op, founded in Portsmouth in 1873, operates across the south of England, including London, under the Co-op Food and Welcome brands. The merger would proceed via a 'transfer of engagements', allowing the two societies to combine.
Ben Stimson, Southern Co-op's chief executive, said the deal would secure the business's future amid falling profits and higher costs. Kate Allum, Co-op Group's interim chief executive, highlighted that joining forces would create new opportunities for members and communities.
Members of both societies will vote on the proposals, with the merger expected to be completed in the final quarter of 2026, pending regulatory approval.
