The Co-op Group has reported a drop in revenue in 2025, driven by market challenges including a cyber attack, decline in demand for tobacco and changing shopping habits.
In its unaudited trading update for the year ended 03 January 2026, Co-op Group reported revenue of £7.25bn, down 2% on 2024 (excluding estimated direct cyber impact).
On the Co-op Wholesale side, revenue for 2025 was £1.3bn, down 2.2% against 2024, which was attributed to market-wide challenges, including declining demand for tobacco. Excluding tobacco sales, wholesale revenue grew 1.3%.
The wholesale division reported a “marked performance improvement towards the end of 2025, demonstrating growth in the final quarter across value and volume, and outperforming the wider market for Christmas trade”. There was also an underlying operating loss of £14m driven in part by investment in shifting the retailer proposition from Nisa to Co-op Wholesale.
Other highlights for the wholesale division included securing and renewing agreements in the year with partners such as Roadchef and Costcutter.
Overall, Co-op’s retail business was particularly affected by the cyber attack, with the business highlighting both the immediate impact of restricting systems, and a tail of changed buying behaviour as transitory convenience shopping habits were disrupted.
Commenting on the results, chair of Co-op Group, Debbie White, said: “2025 was a challenging year, but those challenges have helped us reshape Co-op for the future. Despite a cyber attack and tough market conditions, our colleagues have shown incredible resilience, keeping communities served and essential services running.
To get back on track, we have adjusted our commercial strategy and strengthened our partner offer while substantially growing active membership. Now, we’re looking ahead with a strong focus on customers, while continuing to prioritise the people who own our business, targeting ten million active members by 2030.”
Chief executive, Shirine Khoury-Haq, added: “Trading conditions remain difficult and the current geopolitical landscape is adding further instability, but we have reasons for optimism. Including our own estate and partners, we supply close to 8,000 stores; our new Commercial and Logistics business is turning this strength as a supplier into a path to growth.
“Looking at our portfolio as a whole, our Life Services area – insurance, funerals, legal services – grew in 2025 despite disruption. We fundamentally reset our wholesale business for partners, launching a fantastic new proposition, establishing significant relationships and building our future pipeline. The retail industry is still under pressure from rising costs and cautious consumers, but we’re adapting: growing our online convenience.”
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