Co-op Group set to merge with Southern Co-op

Southern Co-op is headquartered in Portsmouth and operates over 300 food, funeral and Starbucks coffee branches across the south of England, including London.

The merger would add to the Co-op Group’s network, headquartered in Manchester, which operates 2,300 food stores, 800 funeral homes, a wholesale arm, as well as legal and insurance businesses.

The Co-op Group, which currently has 7 million members, already works with Southern Co-op as the lead operator of the Federal Retail Trading Society, the central buying group of co-operative retail societies in the country. 

A two-thirds majority is required from Southern Co-op members for the vote, set for May 6, 2026, to approve the merger. If that passes, a second vote will be held on May 21, 2026, where a simple majority is required. 

Any merger would be expected to take place between July and September this year, but the plan is for the businesses to be run independently for some time until approval is granted from the Competition and Markets Authority. 

“The co-operative model is more important than ever for the health and success of communities across the UK, and a combined co-operative, bringing together over 300 years of co-operative experience, will provide new and strengthened opportunities for members, customers, colleagues and suppliers of both of our co-operatives,” said Co-op Group chair Debbie White.

The Co-op Group is under new leadership after the resignation of former chief executive Shirine Khoury-Haq last month. The announcement was made alongside the retailer’s latest trading update, which showed that it posted a £126m loss in the year ending January 3, 2026. It attributed much of this to the impact of last year’s cyber attack, saying that this had a £107m impact on profitability.

Kate Allum was hired as interim replacement for Khoury-Haq, with the search for a permanent successor underway.

“Joining forces across Co-op Group and Southern Co-op will create new opportunities for members to have access to a greater range of benefits across a wider society, with more trading opportunities, and in turn more benefits for them and their communities,” said Allum in a statement released about the potential merger.

“The Co-operative Group shares our values and our commitment to democratic membership, ethical sourcing and fair reward, as well as our dedication to supporting local communities. By coming together, we can secure the co-operative future of Southern Co-op as part of a stronger combined Co-op Group, whilst creating an even stronger voice nationally and internationally to advance the co-operative cause,” said Southern Co-op chief executive Ben Stimson.