Co-op closes all standalone On the Go stores after losses

Co-op has closed all of its standalone On the Go stores, ending the micro-store concept just over a year after it was first launched. The decision follows a review into the longer-term viability of the stores, which offered customers a range of food and drink options to take away.

Concept launched last summer

The company opened its first On the Go store in Solihull on July 31, before expanding the concept to other locations. Stores in Altrincham, Kingston upon Thames, Aylesbury and Chelmsford followed, with each stocking products to cater to different parts of the day, including breakfast meal boxes, lunchtime deli selections, and Co-op’s Irresistible pizzas, which were cooked in-store to order.

In December, Co-op also introduced elements of the On the Go concept into five existing stores across Leeds, Yorkshire and London. Those stores are still operating, but all standalone locations closed in August.

Integration into existing stores

The company found that the On the Go concept worked best when integrated into existing stores. Going forward, it will be expanding on this approach and is now looking for more stores where the concept can be incorporated.

A Co-op spokesperson told The Grocer: “Innovation in convenience is a core focus at Co-op and the programme was centred on launching and learning at pace.”

“Where we have retro-fitted the new concept into our existing stores, we see strong, successful and sustainable opportunities to further elevate and grow the new proposition, combining breakfast, lunch and dinner on the go alongside the convenience of Co-op’s broader grocery range in existing high-footfall locations.”

Financial struggles and job risks

The move comes at a time of financial struggles for the retailer, after reporting losses worth millions of pounds in the first half of this year. Co-op recently announced that hundreds of jobs are at risk as it attempts to save £200 million.

Interim chief executive Kate Allum refused to say how many jobs are being cut across the company’s 54,000-strong workforce, but blamed the Government’s increase in employer National Insurance contributions for its rising costs. Allum said: “That is the reality check of the cost of employment going up over the last three years for all of the retail industry.”