Co-op chief executive steps down as c-store specialist swings to a loss

The announcement was made in tandem with the Co-op reporting its trading update for the year ending January 3, 2026, which showed that the retailer swung to a £126m underlying loss before tax and group revenues dropped 2.3% to just over £11bn.

The retailer put much of this down to the impacts of last year’s cyber attack, which it said had an estimated £285m direct impact on revenues and an estimated £107m impact on profitability.

That included an £86m margin impact and £21m of incremental, non-recurring costs. In the period, net debt excluding leases ballooned to £317m.

Excluding the impacts of the cyber-attack, the Co-op said that revenue for the period was broadly flat.

Despite this, the Co-op said its “strong liquidity at the start of 2025 allowed” it to manage these challenges and that it expects net debt figures to “improve in the first half of 2026 as a working capital impact unwinds”.

In terms of outlook, the Co-op said its immediate priority is on “resuming its 2024 trajectory, where results demonstrated a 35% increase in underlying profit”.

It also said work was underway to remove £200m of annual operating costs in 2026.

Allum to replace Khoury-Haq

Khoury-Haq will step down as chief executive on March 29 and will be replaced by Kate Allum, who has been appointed interim group chief executive to give the retailer time to find a permanent successor.

Allum is currently a member-nominated director of the Co-op group board, and the Co-op said she brings “extensive board-level and executive leadership experience, with a strong track record of leading complex organisations through periods of change and transformation”.

Khoury-Haq joined the Co-op in 2019 as group chief financial officer and was appointed group chief executive in 2021, after the departure of Steve Murrells.

The Co-op said that during her tenure, Khoury-Haq “led the business through significant transformation”, reducing debt by 95% and increasing profits by 30% between 2022 and 2024”.

The retailer said she also “led the organisation in fighting off” the cyber attack in 2025 and has since developed a “multi-year strategy for… Co-op’s recovery post cyber and then through to an ambitious phase of growth”.

She said: “It has been an honour to lead our Co-op as chief executive. 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 chief executive 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.”

Co-op group chair Debbie White said: “We thank Shirine for her leadership and for the significant contribution she has made to our Co-op, to our communities, and to the co-operative movement during her tenure. The Board is grateful for her commitment and leadership, particularly during a challenging few years, and we wish her every success in the future.”