The acquisition would involve bringing Southern Co-op's 300,000 members into the Co-op Group, which has seven million members. The deal includes Southern Co-op's approximately 300 food, funeral, and Starbucks coffee branches, as well as its three crematoria. Southern Co-op is headquartered in Portsmouth and operates predominantly across the south of England, including London, trading under the Co-op Food and Welcome brands.
It was established in Portsmouth as a co-operative in 1873 but has recently struggled with declining profits and rising costs, according to its chief executive Ben Stimson. Southern Co-op members will be given a vote on the proposals, and the merger would take place through a process known as 'transfer of engagements'. If backed by members and regulators, the deal is expected to be completed in the final quarter of 2026.
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.
According to Stimson, the deal would safeguard the future of Southern Co-op, and he described it as securing the co-operative future as part of a stronger combined group. Kate Allum, the Co-op Group's interim chief executive, said joining forces will create new opportunities for members to have access to a greater range of benefits across a wider society. The firms declined to reveal the price of the potential transaction, and it remains unclear what specific regulatory approvals are required or how integration might affect existing employees.