The Co-Operative is set to either open or refurbish 50 stores as part of a major supermarket overhaul despite the financial damage resulting from the company’s security breach.
Earlier this year, hackers infiltrated the retailer systems in April, which caused substantial operational disruption. The incident resulted in approximately £120million being wiped from the group’s yearly profits.
This expansion forms part of a broader investment strategy that has seen the cooperative pour more than £200million into upgrading its property portfolio.
As part of this latest move, the retailer’s expansion encompasses fourteen brand-new locations, including a pioneering presence as the inaugural permanent shop at London’s Brent Cross Town development.
The Co-Op is expanding its number of stores
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PA
Five compact convenience outlets designed for quick purchases will also join the estate, alongside a franchised outlet at Lancaster University.
The remaining thirty-six locations represent existing shops that have undergone comprehensive renovations during extended closures.
These sites will welcome customers back with contemporary designs and refreshed merchandise selections.
This latest wave of openings brings the cooperative’s total refurbishments and new launches to beyond two hundred properties during the current financial period.
High streets have been hit by a wave of closures since the pandemic | PAThe security incident inflicted approximately £206million in lost revenue, with criminals successfully impersonating staff members to deceive employees into surrendering their login credentials.
It was found that perpetrators managed to duplicate a company database but were prevented from launching more destructive ransomware attacks or penetrating deeper into the organisation’s infrastructure.
Furthermore, the breach left shops with depleted stock levels and resulted in the theft of information belonging to the cooperative’s entire membership base of roughly 6.9 million individuals.
On top of this, the Co-Operative is urging the Labour Government to ease the tax burden on businesses following the decisions made in last year’s Budget.
Last November, Chancellor Rachel Reeves raised the rate paid by employers in National Insurance contributions to 15 per cent, raising costs on the private sector.
Furthermore, the consumer price index (CPI) rate of inflation has risen to nearly double the Bank of England’s target in the past year, however analysts predict this will begin to fall.
Shirine Khoury-Haq, the group’s chief executive, emphasised that sustained expansion requires stability: “We’re investing in stores and communities right across the UK because we believe in the future of the high street.”
She stressed that property tax restructuring remains essential for retailers to maintain confidence in their planning, safeguard employment and support local economic vitality.
The Chancellor raised £40billion following her Budget last year, with her hike on National Insurance Contributions for employers increasing revenues £25billion | PA“The Government now has an opportunity in the Autumn Budget to do its part by delivering the reform that’s long been promised,” Ms Khoury-Haq stated.
Jim Moore, employee relations expert at HR consultants Hamilton Nash, added: “Not only has the rate of employer National Insurance contributions risen, the threshold at which these contributions are payable has fallen from £9,100 to £5,000.
“This is a double-whammy for employers already grappling with wage pressures, higher borrowing costs and energy bills. These increases add further strain to already wafer-thin margins in some sectors, especially hospitality.
“The risk is that this will not just make it harder for employers to create jobs, it could also lead to redundancies. The increase in the government’s Employment Allowance may help the smallest of employers, but larger employers face a steep increase in their employment costs.”
