Co-op builds momentum with focused investment and continued transformation

23 September 2026

  • Navigated challenging markets with growth in sales, convenience market share and membership.
  • Made strategic investments to drive trade and future growth, impacting short-term profitability.
  • Strong summer trading supports confidence in full-year progress across sales and profitability measures.
  • Active membership increased 11% to 7.5m, with member voting up 52% at Co-op’s AGM.
  • Financial resilience maintained with £1.2bn of liquidity, including new £350m sustainability bond.
  • Southern Co-op’s 170 stores, 70 funeral homes and 3 crematoria transferred to a wholly owned subsidiary of Co-op in July 2026, operating independently pending CMA approval.

Financial results

Interims financial results table 2026

  • 2.4% sales growth against the comparative period, where the Group handled a criminal cyber attack. This growth was achieved in soft markets with continued weak consumer confidence. Trading improved through the second quarter and into the second half.
  • Underlying operating loss broadly flat year-on-year with £11m of the variance reflecting accounting treatment.
  • Driving the trading improvements, Co-op made investments in margin, including in promotions and proposition, with an impact on underlying operating profitability for the first half.
  • Focus on cost management, with the increase in Co-op’s total cost base held to 2%, despite £78m in additional headwinds, including annualised material National Insurance increases.
  • Strong balance sheet, including:
    • Improved net debt excluding leases, from £317m at 2025 year-end to £239m, driven by strengthened working capital.
    • A new £350m sustainability bond, linked to Co-op’s spend with environmental and social benefits, 3.3x oversubscribed.

Interim Chief Executive, Kate Allum, said:

“2026 is looking like a year of two halves for our Co-op. The first half was characterised by difficult markets and low consumer confidence, especially for Food Retail. Against those conditions, we made decisions to drive trade – investing in promotions and investing in our stores – while also mitigating rising costs. These things have had a short-term impact on profitability.

“Speaking now in the second half, we’re seeing bigger baskets and more transactions. Conditions remain challenging, but we see reasons for confidence across our portfolio, having delivered strong growth in areas such as online convenience shopping and funerals. We expect to see a stronger performance in the second half than the first, with sales growth and improvements in profitability.

“Our immediate goal is to establish the firm foundations we need to realise greater growth in the years ahead – something we’re gearing up for as we progress our plans to join forces with Southern Co-op.”

Outlook

Against continued economic uncertainty and price pressure, Co-op expects to deliver a stronger second half, with progress across both sales and profitability metrics.

The Group is also advancing plans to create a co-operative society with even greater scale and impact for the people who own it. On 26 July 2026, Co-op welcomed over 300,000 Southern Co-op members as members of Co-op Group, with 97% of Southern Co-op members who voted backing the proposal to join forces. Southern Co-op’s businesses, including 170 stores and a significant funeral estate, have now been transferred to a subsidiary of Co-op Group: Siena Co-operative Limited.

Activity to bring together the operations of Southern Co-op and Co-op Group will commence subject to the outcome of the ongoing review by the Competition and Markets Authority (CMA).

Performance by business area

Co-op has eight routes to market across several categories:

Food Retail - Revenue: £3.7bn (+2.6%), UOL: £18m

  • Increased convenience market share to 13.0%, outperforming the wider market.
  • 24% sales growth in quick commerce online convenience shopping, expanded to 90% of stores.
  • Invested c.1% of margin in driving trade and footfall in food stores through deals, discounts and 135 essentials price-matched to Aldi for members. As a result, transactions have returned to levels seen before the 2025 cyber attack.
  • Continued to innovate in estate and format with 42 store openings in the half – including new sites, refurbishments, franchise stores and ‘sustainability showcase’ stores with solar panels and recycling services.
  • Launched the ‘Pop to Co-op’ campaign, emphasising Co-op’s strength in convenience and top-up missions, with growth ahead of the wider market in core categories such as protein and produce.
  • Showcasing the best of Co-op with pop up stores at UK festivals such as Latitude and Download, with a five-year extension now agreed to continue this presence.

Wholesale and Franchise - Revenue: £683m (+0%), UOL: £13m

  • Co-op’s wholesale operation delivered on its plans as part of a long-term reset, with updated Nisa branding rolled out to 25 stores with 100 planned for the year.
  • Opened 164 new stores and secured new business agreements worth an additional £142m of total contract value year-to-date – with a pipeline of £280m to year-end.
  • Continued strong growth of 26% in the Group’s franchising business with 11 openings.

Co-op Partners - Revenue: £1bn (+1.9%)

  • Sales to other co-operatives increased by 1.9%.

The Group’s three other businesses support customers and members across key life moments, seeing a 17% increase in underlying operating profit (H1 2025: £24m).

Life Services: - Revenue: £227m (+8.1%), UOP: £28m

  • 8% revenue growth for Funeralcare, despite a smaller market due to a lower UK death rate. Co-op has seen 6% growth in at-need funerals, 27% growth in funeral plan sales, and the highest at-need market share since 2020, when the Group had more funeral homes.
  • 15% revenue growth for Legal Services, celebrating its 20th year in business with case openings up 29%.
  • 20% growth in underlying operating profit for Insurance, seeing notable 20% growth in life insurance sales as Co-op has reset the operating model.

Delivering as a member-owned business

  • 7.5m active members, with 11% growth compared to the first half of 2025.
  • 52% more members voted at the 2026 AGM than in 2025, with 12 local events and a 65% rise in attendees.
  • Supported 38 Co-op Academies, with two additional schools joining the Trust in September.
  • Raised £7.5 million for Barnardo’s since 2023, supporting one million young people across the UK.
  • Co-op has now extended this partnership, with a new target of £2m to support belonging and inclusion initiatives.

To read the update in full, click here.

ENDS

Media Enquiries

Co-op

Russ Brady, 07880 784442, russ.brady@coop.co.uk

Cat Turner, 07834 090783, catherine.turner@coop.co.uk

Citigate Dewe Rogerson

Angharad Couch, 07507 643004, angharad.couch@cdrconsultancy.com

Sabine Pirone, 07903 847557, sabine.pirone@cdrconsultancy.com

  1. Variances should be understood in the context of the cyber attack Co-op experienced in 2025, with an estimated £206m impact to revenue and an estimated £80m impact to profitability: £60m in margin and £20m in incremental, non-recurring costs.