How organised crime and illicit goods are shaping Britain’s high streets

16 September 2026

Since our foundation in 1844, Co-op has existed to serve our members where they live, work and need us most. This is especially true today on the thousands of high streets, shopping parades and local precincts where our stores, colleagues and communities come together every day.

Whilst high streets face a range of economic challenges, there’s another issue that often receives less attention: the growing influence of organised crime and illicit trade.

That's why we've commissioned a new White Paper, The Legitimate High Street Framework, written by leading criminologist Professor Emmeline Taylor. The report explores how criminal networks are increasingly exploiting seemingly legitimate businesses to sell illegal and illicit goods, creating a shadow economy that undermines honest businesses and damages community confidence.

One of the clearest examples is the illicit tobacco market, which includes sales of illegal imported cigarettes, counterfeit products that contain fake tobacco, and stolen goods.

There’s an estimated two to ten billion illicit cigarettes on sale in the UK, equating to £1.4 billion a year in lost tax revenue. Tobacco is a high value commodity which organised crime gangs use to exploit consumer demand through price differentials, thus expanding the shadow economy.

__What the research found __

New YouGov research commissioned by Co-op found that more than a third (36%) of UK smokers have bought illicit cigarettes, with the figure rising to almost half among some age groups. Almost half of those purchasing illicit cigarettes say they buy them from shops that appear to be legitimate local businesses.

Alongside this, Freedom of Information requests submitted by Co-op revealed significant variations in enforcement activity across England. Where inspections and raids do take place, illegal cigarettes are found in around 43% of cases, with an average of 8,000 cigarettes seized each time.

The findings reinforce an important point from Professor Taylor's research: crime is not simply a consequence of high street decline. In many cases, it has become one of its drivers.

When criminal enterprises establish themselves in local communities, they distort competition, undermine responsible businesses, erode public confidence and contribute to environments that feel less safe for colleagues, customers and residents alike.

__We’re calling for stronger action __

For Co-op, this matters because we see the impact every day. We've been a leading voice on tackling retail crime and the abuse, violence and theft experienced by retail workers. But organised crime extends beyond any single retailer. It affects entire communities and the businesses that serve them.

The report also shows that this isn’t an impossible problem to solve. The evidence suggests that when enforcement agencies take action, results follow. Professor Taylor's recommendations set out practical measures that could help disrupt organised crime networks, strengthen enforcement activity and support the long-term regeneration of local high streets.

We welcome the Government's focus on high street renewal and believe tackling organised crime must be recognised as a fundamental part of that agenda. Safe, successful and thriving high streets cannot exist alongside flourishing illicit economies.

As a business with deep roots in communities, Co-op is committed to supporting efforts that help high streets become the beating hearts of communities once again.

As we have done for more than 180 years, we'll continue to stand alongside our members in the places they call home.

On their corner and in their corner.

Read more about The Legitimate High Street Framework here.