Co-op Forges Ahead with Major Store Expansion
The Co-op has announced a significant push to open and refurbish dozens of stores, demonstrating a strong recovery from a damaging cyber attack that hit the business earlier this year. The retailer confirmed that 50 stores will be opened or re-opened in time for the Christmas trading period, representing a major investment in the UK's high streets.
Investment and Expansion Details
This latest wave of openings will bring the total number of store openings and refurbishments for the current financial year to more than 200 sites. The company revealed that its extensive store programme will have involved an investment of over £200 million across its estate.
The expansion includes 14 completely new stores, featuring a landmark presence as the first permanent retailer at the new Brent Cross Town development in London. The rollout also encompasses five new micro-format 'on the go' stores and a new franchise store at Lancaster University. The remainder of the 50 locations consist of sites that have been closed for extensive refurbishment and will reopen with fresh designs and updated product ranges.
Recovery from Cyber Attack and Call for Reform
This growth initiative comes as the group, which has approximately 6.9 million member-owners, continues its recovery from a major cyber attack in April. The company disclosed in September that the hack is expected to reduce its annual earnings by around £120 million and impacted sales by approximately £206 million.
The cyber attackers used sophisticated methods, impersonating workers to trick employees into providing account access. Although the hackers created a copy of one of the firm's files, they were unable to launch further attacks or install ransomware on its platforms.
Alongside its expansion plans, the Co-op has made renewed calls for property tax reform, specifically urging the Government to deliver on business rates reform in the upcoming autumn Budget. Shirine Khoury-Haq, Co-op Group chief executive, emphasised that while the business is committed to investing in communities, sustained growth needs certainty.
She stated: "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 Government now has an opportunity in the autumn Budget to do its part by delivering the reform that’s long been promised."
