After almost seven years at the Co-op Group, including four years as CEO, Shirine Khoury-Haq is stepping down. The move was announced as the organisation posted an unaudited 2025 loss of £126m (2024: £45m loss), with debt increasing from £55m to £317m.
It follows a year of challenges for the organisation, including a far-reaching cyber attack which affected the wider UK co-operative retail sector, and ongoing claims of ‘toxic leadership’ within some areas of the business. Current member-nominated director, Kate Allum, has been appointed Interim Group CEO, from 29 March.
The organisation believes the cyber attack had an estimated £285m direct impact on revenue and an estimated £107m impact on profitability – and that the event continues to have an ongoing impact on shopper behaviour. It added that evolving market dynamics and increased operating, regulatory and colleague costs also impacted the figures.
Debbie White, chair of the Co-op Group, said: “2025 was a challenging year, but those challenges have helped us reshape Co-op for the future. Despite a cyber attack and tough market conditions, our colleagues have shown incredible resilience, keeping communities served and essential services running.”
White said that to get back on track, the organisation has adjusted its commercial strategy and strengthened its partner offer while growing active membership. “Now, we’re looking ahead with a strong focus on customers, while continuing to prioritise the people who own our business, targeting 10 million active members by 2030.”
Actions by the retailer include growing its quick commerce business by 15%, growing its Life Services division (up by 4% last year) and resetting its wholesale proposition as a multi-fascia provider. It has also invested £318m to support member and customer experience, including in technology and stores.
Revenue was down 2.3% year-on-year – but the Group stated that excluding the estimated cyber impact, revenue was broadly flat year-on-year, with Life Services and Food Retail businesses demonstrating growth. This led to an underlying operating loss of £35m, which includes the estimated direct cyber impact of £86m, as well as an additional circa £150m in cost headwinds. These headwinds include regulatory costs of £47m, made up of National Insurance increases and new Extended Producer Responsibility charges, as well as investments in colleague pay.
Khoury-Haq said: “Trading conditions remain difficult and the current geopolitical landscape is adding further instability, but we have reasons for optimism. Including our own estate and partners, we supply close to 8,000 stores; our new Commercial and Logistics business is turning this strength as a supplier into a path to growth.”
She acknowledged that the retail industry is still under pressure from rising costs and cautious consumers, “but we’re adapting: growing our online convenience business, offering more to health-conscious shoppers and investing in stores. We’re confident in the road ahead.”
On her decision to step down, she added: “It has been an honour to lead our Co-op as CEO. It is not only a commercial enterprise, but also deeply embedded in communities, doing right by them and our members every day. Following last year’s cyber attack, the organisation is now ready to deliver on an ambitious strategy of stabilisation and transformation. This extends beyond the timeframe I had planned for my CEO tenure, and now is the right moment to hand over to leadership that can commit to seeing the strategy through.
“I want to thank all of our Co-op colleagues and members for their support over the years. I wish this wonderful organisation success in the future and, when the transition period is over, I look forward to continuing my relationship with our Co-op as a member owner.”
Kate Allum said: “It is a privilege to step into the role of interim group CEO at such an important time for our Co-op. Ours is a business with a clear purpose, a compelling business strategy and a values-led approach to making a positive difference within the communities we serve across the UK. I look forward to working even more closely with our incredible colleagues, our members and the board and National Members Council as we continue to strengthen our Co-op for the long-term.”
The organisation’s current strategic ambitions are based on “what consumers come to Co-op for,” said a statement, including accessibility, value, and its ethical difference. Looking forward, it will prioritise business-to-business partnerships, developing its wholesale and FRTS services, franchising and food retail, and delivering as a democratic business.
“Co-op is owned by its members and has continued to drive their participation in the business,” said the statement. As well as extending AGM voting rights to 1.5m additional members, it continues to adapt its hanging sourcing policies based on member priorities.
In 2025, it stopped sourcing from countries where the international community has identified serious risks of community-wide human rights violations and violations of international law, while also ‘Backing Britain’ through increased spending with UK farmers and agriculture suppliers, and directly sharing over £760,000 through a new fund encouraging sustainable agricultural practices. 100% of fresh and frozen own-brand meat is sourced from British farmers, including when used as an ingredient.
The organisation continues to partner with Barnardo’s through colleague, member, customer and supplier fundraising; supporting the Co-op Academies Trust, which operated 38 schools in 2025 with plans to expand in 2026; matching over 3,000 apprenticeships through Co-op Levy Share, and supporting 135 causes and individuals through the Co-op Foundation, creating opportunities for young people.
Audited full-year results and Annual Report will be available ahead of the Group’s AGM on 16 May 2026.
