Co-op Group and Southern Co-op announce merger plans

The Co-op Group and Southern Co-op have announced plans to merge.

Subject to approval by Southern Co-op members and mandatory regulatory approvals, if it goes ahead, the merger would result in 300,000 Southern Co-op members joining the 7 million Co-op Group members as members of an enlarged Co-op Group.

According to both parties, it would create a co-operative society with greater scale, resilience and impact for members, customers, colleagues and communities across the UK.

Southern Co-op currently operates more than 300 food, funeral and Starbucks coffee branches across the south of England, with the Co-op Group operating over 2,300 food stores, 800 funeral homes and a wholesale business supplying around 8,000 outlets, as well as a leading legal services and insurance business.

The transfer of engagements is expected to take place in Q3 2026, at which point Southern Co-op members would become members of an enlarged Co-op Group. However, both businesses are expected to continue to be run independently for a period of time after that point, as they seek CMA approval. During this period members of each society will continue to receive the separate member benefits currently offered by the two societies when trading.

Commenting on the proposals, chair of The Co-operative Group Debbie White, said:

“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.”

Interim CEO of The Co-operative Group Kate Allum added: “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.”

CEO of Southern Co-op Ben Stimson said it would secure the future of Southern Co-op. “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.”