Pictured: Debbie Robinson (Central CEO); Irene Kirkman (Midcounties president); Elaine Dean (Central president); Phil Ponsonby (Midcounties CEO)
The UK’s two largest independent retail co-operatives – Midcounties and Central – have announced they are in advanced discussions about a merger that would create a “society for the future”.
If approved, the combined society would unite over one million members, 13,000 colleagues and annual sales of £1.8bn, with a portfolio of specialist businesses including more than 500 food stores, 170 funeral homes, 70 travel agencies, and almost 50 nurseries, as well as more than 500 investment properties across the UK.
According to a statement, discussions have been taking place “for many months” about how they can benefit members through closer ties, greater economies of scale and operational efficiencies that would reduce costs and create a platform for sustainable growth.
The boards of both societies plan to contact their members to consider proposals as plans develop and “will be consulting them fully before any votes take place”.
“As co-operators, we know that by working together, we can achieve more for our members, colleagues and communities,” said Elaine Dean, president of Central. “By combining our strengths, we can create a co-operative society that is more influential, more resilient and more ambitious, while helping ensure that the co-operative movement continues to grow and inspire. We look forward to continuing discussions with the Midcounties board over the coming weeks.”
The two organisations have a rich heritage and shared values and “together we can lead the way in showing how co-operation can create a lasting and positive impact in the UK,” said Irene Kirkman, president of Midcounties. “One of the many values we share is the commitment to remaining independent and fully owned by our members and so it will be for our members to determine our future.”
The new society would remain rooted in local communities, the announcement said, with sites in counties across England, as well as operating throughout the UK via the digital reach of its funeral, travel, energy and telecommunications businesses.
“We have a unique opportunity to create a society for the future, something that reflects the priorities of our members and addresses the challenges of our time,” said Phil Ponsonby, chief executive of Midcounties. “This potential merger would strengthen our ability to innovate, invest and cross-market a broad family of businesses to create a strong and stable platform for future growth.”
Related: Chelmsford Star members make final approval of Central merger
Debbie Robinson, chief executive of Central, added: “While talks are ongoing, discussions to date have identified significant commercial and operational benefits that could come from merging our two societies. However, this is ultimately about more than numbers, it’s about people.
”By uniting our societies, we can increase our ability to deliver value for our members and communities; provide more rewarding careers and greater opportunities for development for our colleagues; and it means that we can combine our respective strengths to create a new Society that is built to thrive for the long term.”
The statement said the new society would emphasise purpose beyond profit and “would be committed to helping other co-ops to thrive and grow, in line with the government’s pledge to double the size of the co-operative sector”.
Both societies are planning to contact members in the coming weeks to provide further information about how they will be consulted throughout the process and how they will be able to vote on any proposals that are put forward.
“Any proposals put to members would see the new society maintain and celebrate the unique regional identities of its trading areas, following the example set by the recent successful transfer of Chelmsford Star Co-operative into Central Co-op,” the statement added.
