The Co-operative Group has proposed a takeover of Southern Co-op, according to multiple reports. This proposal would save approximately 300 stores from closure and nearly 5,000 employees, as reported by major media. Southern Co-op currently employs 4,500 staff, and the merger would add its approximately 300 food, funeral, and Starbucks coffee branches to The Co-operative Group's portfolio. Under the agreement, The Co-operative Group would acquire Southern Co-op's three crematoria. The merger would also bring Southern Co-op's 300,000 members into The Co-operative Group, which has seven million members, significantly expanding its membership base.
Southern Co-op members will vote on the proposals, and the merger requires approval from members and regulators, according to multiple reports. If approved, the merger is expected to be completed in the final quarter of 2026. The merger would occur through a process called 'transfer of engagements', as reported by major media, which is a standard method for combining co-operative societies.
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.
Southern Co-op was founded in 1873 in Portsmouth, according to multiple reports. It operates in central south, south west, south east, and London regions of England, and trades under the Co-op Food and Welcome brands, as reported by major media. According to Ben Stimson, Southern Co-op's chief executive, the company has recently struggled with declining profits and rising costs, highlighting the financial pressures facing the organization.
The Co-operative Group is the UK's largest national co-operative, with over 2,300 food stores, funeral homes, and runs legal and insurance services across the UK, as reported by major media. This extensive network positions it as a dominant player in the co-operative sector. The firms declined to reveal the price of the potential transaction, as reported by major media, keeping financial specifics confidential during negotiations.