The Co-op Group has announced its results for the six months to 4 July, with underlying losses rising to £45m, from £32m in the first half of 2025.
The retail society, which had a turbulent 2025 in the wake after a serious cyber attack forced a shutdown of its distribution network, is currently working through a merger with Southern Co-op, currently facing a possible regulatory investigation.
It has responded to its recent losses with a £200m efficiency plan, with interim CEO Kate Allum confirming job losses to the press but adding this is “not just about jobs going but also being created”.
The Group struck a confident note in its interim report, saying that it “navigated challenging markets with growth in sales, convenience market share and membership”.
It also noted strategic investments to drive trade and future growth, impacting short-term profitability, adding that a strong summer performance pointed to a better full-year performance.
Active membership rose 11% to 7.5 million, with member voting up 52% at Co-op’s AGM.
Financial resilience was maintained with £1.2bn of liquidity, the Group added, including a new £350m sustainability bond.
Sales grew 2.4%, “achieved in soft markets with continued weak consumer confidence”, the report said. Trading improved through the second quarter and into the second half.
Related: UK retail co-ops face up to the rising cyber-crime threat
“2026 is looking like a year of two halves for our Co-op,” said Allum. “The first half was characterised by difficult markets and low consumer confidence, especially for food retail. Against those conditions, we made decisions to drive trade – investing in promotions and investing in our stores – while also mitigating rising costs. These things have had a short-term impact on profitability.
“Speaking now in the second half, we’re seeing bigger baskets and more transactions. Conditions remain challenging, but we see reasons for confidence across our portfolio, having delivered strong growth in areas such as online convenience shopping and funerals. We expect to see a stronger performance in the second half than the first, with sales growth and improvements in profitability.
“Our immediate goal is to establish the firm foundations we need to realise greater growth in the years ahead – something we’re gearing up for as we progress our plans to join forces with Southern Co-op.”
The report also points to an Increased convenience market share to 13.0%, outperforming the wider market; and a 24% sales growth in quick commerce online convenience shopping, expanded to 90% of stores.
Around 1% of margin was in driving trade and footfall through deals, discounts and price-matching, the report adds, and “as a result, transactions have returned to levels seen before the 2025 cyber attack”.
The Group says it also “continued to innovate in estate and format with 42 store openings in the half – including new sites, refurbishments, franchise stores and ‘sustainability showcase’ stores with solar panels and recycling services.”
