This year’s Co-op Retail Conference, organised by Co-operatives UK, was opened by apex CEO Rose Marley set the scene marked by a “relentless run of challenges for co-op retailers over the last decade” – with Covid, the cost-of-living crisis, rising operating costs, intense competition from supermarkets and the constant presence of cyber risks.
The event, running from 19-21 March in Glasgow, is this year sponsored by Lobyco (“which empowers co-operatives globally to do cool stuff with the membership that normally would have a much bigger price point”.
Local councillor Malcolm Mitchell welcomed delegates to the event and highlighted how Glasgow is a resilient city. “In times of trouble, Glasgow and Glaswegians come together – we have a sense of solidarity and collective ownership over our city, in the same way that co-operatives do.”
Introducing the event, Marley added: “It is in challenging, turbulent times when solidarity matters most.
“This is where our co-operative values and principles come in, because they do work when you turn to them in times of need. They’re not slogans. They are a point of navigation.”
Co-operatives are resilient, she said. “We are here for the long term, and the world desperately needs businesses that are here for the long term.”
An in-depth report from the Institute of Grocery Distribution (IGD) is a regular feature at the conference, and this year it was presented by commercial manager Graham McLean, who highlighted how IGD‘s purpose is to “unite and inspire everyone to deliver a thriving food system” by fostering collaboration and providing evidence-based insights, research, and strategic foresight.
Related: European retail co-op leaders meet with MEPs to discuss food policy
The retail sector is still feeling the long-term repercussions of the 2008 financial crisis and Covid, while turmoil in the Middle East is likely to renew inflationary pressures, he said. Staffing costs are also high – although, he added, this is not a bad thing. “Workforces are properly supported, protected and engaged and recompensed,” he said, “which resonates with co-operatives”.
Shopper behaviour is also changing. “You can almost directly correlate food and drink inflation against shoppers’ confidence from now on and in the future. So confidence is dragged up or by the cost of what’s in their basket.
“By the end of 2026, food and drink prices will be 40% higher than in 2019: and that really is hard, hard, because wages are not up 40% … IGD research shows a third of shoppers they believe they will be worse off this year than last, and of them, over 9 in 10 cite food costs as the key reason.”
Savvy shopping tactics have turned into habits, McLean said. “Planning meals, shopping promotions and buying retail brands were learned behaviours that shoppers have stuck with. Do your stores reflect this? Can you action this within your proposition? There are probably 20 value levers that shoppers pull as they think about what to put in their basket – and value can be many things, a combination of elevation and reward, time and money, and whether the product and store do good?”
Shopper segments are changing too, and retailers need to meet the needs of single households, capture evolving catchment and community (“flex your promotions to meet the changing and adapting ethnicities of your communities”) and serve both an ageing population that values loyalty and humanity and younger generations that are digitally native, super curious, and sustainable by default.
MacLean also highlighted the potential impact of the increase in GLP-1 weight-loss drugs. “The changing diet of the nation may start to impact the basket,” he said. This could mean reduced snacking and fewer meals, but also more fruit and veg, protein, and supplements.
Another potential impact future store layout is the upcoming change in HFSS regulation, which restricts the promotions and locations of products high in fat, sugar or salt. Meanwhile, the Deposit Return Scheme (DRS) initiative launching in the UK in October 2027 to recycle cans and PET bottles to boost recycling rates to 90% and reduce litter could be an opportunity for footfall – and increasing footfall remains the starting point for sales growth.
“There has been a shift towards an at-home environment,” said MacLean, “but the UK grocery retail markets still stand at £297bn, and supermarkets will remain the largest channel, but online is the fastest growing channel.
”And data remains vital, he said. “But not all data is good data. Good data is good data. So find the data that makes sense to you and your co-operatives.”
Find all our coverage of the 2026 Co-op Retail Conference here.
