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27 July 2026

Co-op Group and Southern Co-op reach major transaction milestone

The Co-operative Group today announces the completion of the transfer of engagements of Southern Co-op into The Co-operative Group. This is a key milestone with Southern Co-op now transferred to a wholly owned subsidiary of the Group, ‘Siena Co-operative Limited’, but continuing to trade as Southern Co-op.

This follows the approval by Southern Co-op members in May.

The transaction remains subject to Competition and Markets Authority (CMA) approval. For now, both co-operatives will continue to operate separately, with the outcome of the review expected later in 2026. Subject to approval, integration plans will then progress.

This transfer marks the start of an exciting new chapter of co-operation, creating the opportunity for a co-operative society with greater scale, resilience and impact for members, customers, colleagues and communities across the UK, helping to grow co-operation and provide even greater member value through a broader offering.

Southern Co-op currently has:
• 173 food stores
• 83 Starbucks Coffeehouses
• 69 Funeral homes
• 3 Crematoria
• 4 Burial grounds
• 77 Welcome franchise stores
• Circa 330,000 members

Complementing the Co-op Group’s:
• 2,300 Food stores
• 800 Funeral homes
• Wholesale business supplying around 8,000 outlets
• Leading legal services and insurance business
• 7 million members

Under Siena Co-operative Limited, Southern Co-op’s food, funeral and Starbucks businesses will continue to operate as normal and separately to the Co-op Group with no immediate changes for members, colleagues, suppliers or communities.

Kate Allum, Interim CEO of The Co-operative Group comments:

“Today marks a historic milestone for both societies and the wider co-operative movement. By combining over 300 years of co-operative heritage, we are building a stronger future for members, customers and communities. Together, we can create more opportunities, deliver greater value, and drive the growth of co-operation across the UK for generations to come.”

Ben Stimson, CEO of Southern Co-op said:

“Today marks an important milestone for Southern Co-op. I’d like to thank our colleagues for everything they continue to do to support our members, customers and communities as we reach this point.

“As we take this next step, we’re doing so alongside an organisation that shares our co-operative values and our commitment to making a positive difference in the communities we serve. Our organisations have worked together successfully for many years, including through the Federal Retail Trading Society (FRTS) buying and supply group and the wider co-operative movement, and today’s announcement reflects the strength of that longstanding relationship.”

It builds on an already proven history of successful co-operation for both organisations, including through the Federal Retail Trading Society (FRTS) buying and supply group and wider collaboration within the co-operative movement over many decades.

    4 June 2026

The Competition and Markets Authority (CMA) has today opened the public comment phase of its review into the proposed merger between Southern Co-op and Co-op Group.

This is a standard part of the CMA process and allows interested parties to share their views directly with the regulator.
The proposed merger follows the strong support shown by Southern Co-op members in favour of joining forces with Co-op Group earlier this year. Together, the two Societies believe the proposal would create a stronger co-operative business with greater scale and resilience for the future.

Throughout this process:
• Southern Co-op continues to operate as normal
• Members can continue using their Southern Co-op membership card as usual
• Our commitment to communities and co-operative values remains unchanged

The CMA review is independent and ongoing, and both Societies will continue to work constructively with the regulator.

Members who wish to learn more about the CMA process or provide feedback can do so via the CMA website

We will continue to keep our members informed as the process progresses.

    22 May 2026

At the Special General Meeting of Southern Co-operative Limited held on Thursday 21 May, Members voted in favour of the 2nd Resolution to join forces with The Co-operative Group.

Over 16,091 Members voted – significantly more than the first vote – demonstrating strong engagement from our Members in Southern Co-op’s future.

This represents an important milestone, giving us a clear mandate to progress our plan to join forces for the benefit of Members, colleagues and communities across the UK, while preserving the heritage and legacy of Southern Co-op and all that it stands for.

There are still some formal regulatory steps to complete before we become part of Co-op Group, which we expect to be completed at the end of July.

In the meantime, Members will still be able to use their Southern Co-op card, accessing the same benefits as usual and our stores and funeral homes will continue operating normally.

2025 Quarterly Profit & Loss

Member information pack

Financial strength of Co-op Group

Co-op Group Overview

Southern Co-op Accounts 2024 and 2025

Southern Co-op's Cumulative Cash Gap

Final Voting Results - SGM 1

Final Voting Results - SGM 2

Notice Letter to Suppliers - Transfer of Engagements

Q&A
Why does Southern Co-op need to do this?

For some time now, we’ve been navigating a very challenging trading environment.

Our operating loss (subject to audit) currently sits in excess of £20m.

Our profit has been in decline over the past three years. The malicious cyber-attack on the Co-op Group last year had a significant impact on both societies. Following the attack, Southern Co-op’s trading performance has declined further.

In our 2024 financial year (ending 26th January 2025), Southern Co-op made losses before taxation of £4.5m on sales of £543.9m. This compared to a loss of £2.6m on sales of £545.8m in the previous year.

The Board and Leadership Team have been working to stabilise the business over the last few months, but unfortunately, it’s not been enough to rectify our financial position.

As a result, and to avoid an outcome that would have a far more negative impact on colleague job security and our organisational structure the Board is proposing to join forces with Co-op Group.

And as our priority is to protect, sustain and redeploy as many colleagues, suppliers and creditors as possible, the proposal offers the most effective way to achieve this.
The Board believes that joining forces will help unlock exciting opportunities for both businesses and their members.

Why Co-op Group?

The Co-op Group shares our values and our commitment to democratic membership, ethical sourcing and fair reward, as well as our dedication to supporting local communities. Both organisations also have a proven history of successful co-operation through the Federal Retail Trading Society (FRTS) buying and supply group. Together, we can provide new and strengthened opportunities for members, customers, colleagues and suppliers. The Board is confident that Co-op Group is the only organisation which has both the shared values and financial strength to secure a positive co-operative future for Southern Co-op, and this is the right thing for both societies’ members.

What happens to my membership?

If approved, you will become an individual member of Co-op Group — one of the world’s largest consumer co-operatives, owned by over 7 million member-owners. You will still be able to exercise the unique democratic rights of being a member and owner of a co-operative, including through the ability to vote, stand for election, and shape products and policy. .

To what extent has attrition from Coop Group’s aggressive site acquisition strategy, both for retail and end-of-life, contributed to Southern Coop’s performance decline?

Retail is a highly competitive market place and there is no evidence to suggest that Co-op Group has undertaken aggressive acquisition in our operating area over and above any other competitor.

What are the implications for rationalisation between the two store portfolios and what risk to TSC colleagues’ jobs does this represent?

Co-op Group intends to keep as many stores and funeral homes open as possible within combined co-operative ownership. If the transaction is approved, we will need to discuss the transaction with the Competition and Markets Authority (CMA) to confirm whether they have any concerns about any reduction of competition in any of the communities where both societies have stores. No decisions will be taken regarding stores until we have progressed that discussion with the CMA.

Why on earth was Southern Co-op set up as a separate company in the first place? I hadn't been aware of this until I presented my Coop card for a members price (on milk?) and I couldn't get the self checkout to work. I always thought Coop was nationwide like Sainsbury.

Co-op isn’t one single nationwide company, it’s a network of independent co-operative societies that share similar values. Portsea Island Society was founded in 1873 and then grew through a series of regional amalgamations eventually becoming a standalone society (Southern Co-operative) in 1969.

Do you know how many Southern Coop members are also already members of the Coop Group?

We don’t have visibility of overlapping membership between Southern Co-op and Co-op Group.

If we were to accept the proposal of joining forces with Cooperative Group, does that mean that there would still be a head office at Lakeside in Portsmouth, or would everything be transferred to run out of Cooperative Group's head office in Manchester?, as it if was the latter then many people would be made redundant and then this would actually be a take over by Cooperative Group to run everything that has been built.

If the proposal is approved, Southern Co-op will transfer into a holding company ‘Siena Co-operative ltd’. A transition plan will then begin to move the holding company into Co-op Group operations but at this stage, we do not have details on what this will mean for roles at our Head Office.

One of the main reasons I choose to shop with Southern Co-op is its clear commitment to supporting local producers. That focus genuinely sets you apart from larger supermarkets and is something many customers, like myself, value highly. Products from local businesses - such as The Tomato Stall and New Forest Ice Cream, are not just items on a shelf; they represent communities, livelihoods, and a more sustainable way of doing business. With the proposed merger, I am concerned that this commitment to local sourcing may be reduced in favour of larger, national brands. If that were to happen, it would mean losing one of the key reasons customers choose Southern Co-op over other retailers. I would really appreciate it if you could clarify how local suppliers will be supported going forward. Will there be protections or commitments in place to ensure they continue to have a place in your stores? I hope this is something you will carefully consider, as maintaining strong relationships with local producers is not only beneficial for those businesses, but also for your customers and the communities you serve.

If the proposal is approved, Southern Co-op will transfer into a holding company ‘Siena Co-operative ltd’. A transition plan will then begin to move the holding company into Co-op Group operations but at this stage, we do not have details on what this will look like including product ranges and supply chains.

(1) How would this affect current benefits of being a Southern Co-op member,? i.e. Southern Co-op cardholders receive exclusive in-store discounts, including 15% off fresh fruit and vegetables, 50% off takeaway hot drinks, and £3.50 meal deals. Members also gain "Share of the Profits" vouchers (subject to board approval), discounts on funeral plans, and the ability to vote on company decisions. (2) How would this affect the status of the "Welcome" store at The Hard, Portsmouth, which is a franchise of Southern Co-op? e.g. Would my Southern Co-op benefits be reinstated?

Your membership benefits will be maintained for such time as the Transfer of Engagements and then we will look to merge our member packages together. As part of the transfer into Siena Co-operative Limited, we don’t envisage any changes to our operational model or the benefits you currently receive.

Was any other retail society approached, in the search for transfer of engagements, as an alternative to the Group / Would you please outline which independent Societies were approached as an alternative to the Group? What was their response? / The disadvantage with joining with the Group,is that it is very much northern centric Why has the option of joining with neighbouring retail society’s not been explored?

Given the scale of support required and the speed at which we needed to act, Co-op Group — as one of the world’s largest consumer co-operatives, with over 2,300 food stores, 800 funeral homes, and annual revenues of over £11 billion — was uniquely placed to provide the financial backing and co-operative commitment we needed. We considered all credible alternatives within the co-operative movement.

The Board is confident that no other organisation would have been able to offer the right combination of alignment of values and financial stability for Southern Co-op and its members, nor would any other organisation have been able to deliver a transaction which protected our business, colleagues and members within the timescales required to assure our lenders.

Re the Southbourne store’s proposed move to Co-Operative (Main) will the Post Office remain in-situ?

As part of transfer into Siena Co-operative Limited, there will be no changes to operations over and above what would happen under normal business operations.

The new Co-op Society has Siena in its name What is Siena? The name doesn't reflect that it is a Co-op Society. I worked for Southern Coop Society as a milkman back in the 1970's/80's for 11 years from the Drayton Depot. You kindly gave me employment after leaving the Royall Navy. The larger Co-op then was called CWS, Cooperative Wholesale Society I think. Is Siena 100% British? / The Sienna Corp. of Birkenhead was Dissolved by voluntary Strike-off in 2025. What is this company with a similar name that members are being asked to vote on a link to in this e-mail? / What has Siena to do with the British cooperative societies? Why is the "new society" called Siena? Is all or part of the British cooperative movement already Italian owned? How did this come about?

The full name of the entity is Siena Co-operative Limited. The name itself has no wider meaning or connection. It does not relate to ownership, geography, or any previous organisation, and there is no link to any external business or entity.
It is purely an administrative name chosen to support the transfer process at the time.

Once merged, will the Southern Co-op branches be guaranteed to stay open, as in the Poole area a number of regular Co-ops have closed in recent years. Secondarily, will the merger mean the ability to use the main Co-op loyalty scheme and will points be transferred?

Co-op Group have confirmed that they are keen to retain as many stores and funeral homes as possible within our combined co-operative ownership. At this stage, we do not have any further details as this will form part of a transition plan should the proposal go ahead.

If the proposals are approved, the two businesses are expected to continue to be run independently for a period of time. During this period members of each society will continue to receive the distinct member benefits currently offered by the two societies. There is therefore no direct change for members for the time being. Over time we intend to bring the two membership propositions together to create a stronger combined offer for members.

I read you members pack with interest and if possible will attend the meeting 6th May online. I understand the predicament retail is under and I am keen to help. We are lucky in Bradford on Avon we have a CO-OP and a southern CO-OP in different parts of the town. I use the Southern Co-Op as it is close to me to walk to and it is also very well used by my neighbours and local community. The other co-op in the town centre unfortunately doesn't have parking and is more difficult to get to, so not really on my local shop drive. My concern is that If the local store closes as part of this change I know my neighbourhood and myself will end up shopping at Sainsbury which is also in the town but where they have parking and it is on a direct local bus route. Please can you seriously consider the impact on local communities in your plans as it will have a serious impact on your customers and may end up pushing Co-Op customers away who really would prefer to shop with you.

If the proposal is approved, the Transfer of Engagements moves us into subsidiary company, ‘Siena Co-operative Limited’. We don’t expect there to be any changes to operations as a result of this transfer. We will then work with Co-op Group to transition Siena into Co-op Group but at this stage, we have no further detail on what that looks like.

Please can you advise if the Southern Co-op knows what will happen with your store in Portishead Marina in connection to the SGM? The Co-operative Group Limited have a store at Avon Way, Portishead - would both stores be branded in Co-op blue? I am a member of both Southern Co-op & The Co-operative Group.

If the proposal is approved, the Transfer of Engagements moves us into subsidiary company, ‘Siena Co-operative Limited’. We don’t expect there to be any changes to operations as a result of this transfer. We will then work with Co-op Group to transition Siena into Co-op Group but at this stage, we have no further detail on what that looks like.

If the merger is successful will this mean that some stores will close if there are two in the same area.

This will be dictated by the Competitions and Market Authority (CMA) post transition to Siena Co-operative Limited. Any other closures in the interim period will be related to ongoing commercial reviews that would take place in any case.

Having read the information provided on joining forces with Co-operative Group Limited I note that member approval is not required for a decision and merger. I appreciate the courtesy of being informed and maybe a vote helps the organisation to definitely decide on whether to merge or close due to financial difficulties My first question is: why a vote is requested rather than just providing information of intention? My second question is: why is a new subsidiary of Co-op Group called Siena Co-operative Limited (Siena) required?

As a member owned, democratically run society, members have a say in how we’re run. As this proposal involves changes to our operations, eligible Southern Co-op members are being asked to vote.
The transfer into a subsidiary is to allow a regulator (the Competition and Markets Authority) to review the transaction, not for any other reason.

The Southern Coop appears to stock many product options that I have not seen in other Coop stores. I am thinking of the two stores in Hamble in particular. Will this continue?

At this stage, we don’t have exact details about product ranges in individual stores should the proposal go ahead.

I am a member of the southern cooperative and I am concerned that by merging with the group coop, you will lose the good security that SWL security provide as the policy of Mitie in the group coop is not to go hands on at all for security. Where as the security in the southern cooperative do, and this is a good deterrent and feels safe for customers.

At this stage, no decisions have been made about provision of services.

Why are you recommending a merger with an organisation that lost £126m in 2024/5 and whose CEO has just resigned amid a flood of accusations that a 'toxic culture' reigns throughout the firm?

Co-op Group’s 2025 financial results were atypical, with profitability significantly impacted by a malicious criminal cyber-attack. The Group has taken significant steps to recovery following the attack, with market share returning to or surpassing pre-attack levels across all business areas. Kate Allum recently took on the role of interim CEO, with a strong focus on strengthening the performance of the Food business.

Shirine Khoury-Haq made the decision to step down as CEO earlier this year, and this was not connected to financial performance or media reports. Whilst Co-op Group does not believe the media reporting regarding culture represent the views of their broader leadership and colleagues, they acknowledge that the pace of change during the cyber-attack recovery was difficult for colleagues, and they continue to engage, listen and act on feedback from across the business.

The Questions that members of Southern Coop should ask include: 1: Will the present range and variety of products be maintained after a merger? 2: Will prices be increased across the board? 3: Is Co-op Group separate from the Cooperative Wholesale Society (National)? We normally use the Frome (Badcox) branch.

There are no planned changes to ranges and prices if the proposal is approved and we move into the holding company, Siena Co-operative Limited. CRS and CWS merged in 2000 which then became Co-op Group

What majority is needed to pass the resolution? Why are two SGMs necessary? Will joining forces have an effect on branch closure and if so are likely-to-close branches already targeted and if so is New Alresford branch targeted?

As per our Rules, the first meeting is intended for members to pass a special resolution to approve the transfer of engagements (which requires a 2/3 majority of those eligible members who vote to pass)
The second meeting is a confirmatory meeting to ratify the decision as required by section 111 of the Co-operative and Community Benefit Societies Act 2014 (2014 Act) (which requires a majority of over half of those eligible members who vote to pass).

The transfer of engagements is a statutory process and the requirement for two SGMs and for the voting majorities specified above comes from the 2014 Act.

We do not expect there to be any changes to operations as part of the move into Siena Co-operatives Limited. At this stage, we do not have any detail beyond that point.

I am a member of Southern Coop living in Hampshire, I frequently travel to Richmond North Yorkshire. Will my Coop card be accepted in that store after this ‘merger’ is completed?

The merger is still subject to approval by Southern Co-op members and regulatory approvals. Following this there would be a period of integration, during which it will be communicated how and when members can access benefits across the wider society.

Will Southern members continue to have a genuine say in any political affiliations or donations after the merger? Will there be an option for members who prefer neutrality?

The Co-op Group engage with all political parties and has a long held affiliation with the co-operative party of which it is a founding member. The decision whether to contribute financially to the co-operative party is a decision for members which is put to vote every year at its AGM. If Southern members approve the transfer and become members of Co-op Group they would be able to vote in respect of this motion alongside all other members.

There is already some geographical overlap between Southern Co-op stores and Co-op Group stores in our area. What assurances can you give that the merger will not lead to widespread store closures or job losses? Will there be a review of overlapping sites, and how will members be consulted on any changes?

The purpose of this proposed merger is to support co-operation and to ensure the right stores and funeral homes are in place to support the current and future needs of all members.  Subject to successful Southern Co-op member vote the transaction is subject to regulatory approvals including the Competition and Markets Authority (CMA), and at this point we aren’t in a position to comment on what the outcome of their review may conclude.

SGM 1 QUESTION: Are this years and the 2025 accounts going to be prepared as a separate entity, or will the next audited financial results we see be next year- as part of Group's totals.

2025 accounts will be prepared for the Southern Co-op Group and filed with the FCA by the filing deadline which is 25 August 2026. If the merger goes ahead, then 2026 results of Southern Co-op will be consolidated into the results of the Co-op Group.

SGM 1 QUESTION: Will the post office go over to group to cause I don’t know any group have a post office?

Under the rules of the Transfer of Engagement, all assets will transfer initially to Siena Co-operative Limited entity, a subsidiary of the Co-op Group. There are already a number of Post Office’s within the Group’s estate.

SGM 1 QUESTION: Will local suppliers still have the opportunity to trade with Southern Co-op directly as part of this merger or will all trading for local suppliers have to go through the Co-op group?

The merger is still subject to approval by Southern Co-op members and regulatory approvals. Following this there would be a period of integration and any decisions regarding souring will be made at this point. That said, Co-op Group has a long standing commitment to supporting local suppliers.

SGM 1 QUESTION: Please may we have an overview of the societies financials for the past year along with publication so we can better make an informed choice as to the transfer of southern to the coop group, thank you.

Please refer to members website and the SGM video which contain financial information. The formal accounts will become available once the audit completes later in the summer.

SGM 1 QUESTION: What overlap in the trading estate is there with Group. Will the CMA ask us to sell assets if there are competition issues. Have you identified now many stores will be effected.

The purpose of this proposed merger is to support co-operation and to ensure the right stores and funeral homes are in place to support the current and future needs of all members. Subject to successful Southern Co-op member vote the transaction is subject to regulatory approvals including the Competition and Markets Authority (CMA), and at this point we aren’t in a position to comment on what the outcome of their review may conclude.

SGM 1 QUESTION: How is this 'the best for us' if you can't give us any guarantees for job safety, or branch and shop closures. Where does the 'best for us' come in?

When deciding on the best option, the directors of Southern Co-op looked at what would the best option for the business as a whole, taking into account the interests of its members, employees, local communities, customers and suppliers. You can read more here: Letter-to-Southern-Co-op-Members-re-Merger-Proposal-22-4-2026.pdf

SGM 1 QUESTION: We have had a number of questions regarding membership, and the below covers all questions/queries in this regard

Your Southern membership card will continue to work for the foreseeable future as the two societies will continue to offer their respective member offers for some time. The merger is still subject to approval by Southern Co-op members and regulatory approvals. Following this there would be a period of integration, during which we will communicate how and when members can access benefits across the wider society.

I request information as to arrangements for Directors and particularly any benefits accruing to them under the terms of the transfer. Were there any other questions asked at the first meeting that have not been incorporated into the FAQs I have read?

Directors (both NEDS and Execs) will not be receiving /haven’t received any benefits as a result of the Transfer of Engagements. The Leadership Team do not have roles pre-agreed with tCG following the integration process. NED’s position on the Board is currently being reviewed and will be confirmed following the second vote
All questions received at the first SGM have been answered on our website.

How will the merger affect HQ head office staff ?

If the proposal is approved, Southern Co-op will transfer into a holding company ‘Siena Co-operative Ltd’. A transition plan will then begin to move the holding company into Co-op Group operations but at this stage, we do not have details on what this will mean for roles at our Head Office.

Did Southern Co-op have insurance against the costs of the cyber attack?

We were not insured at the time of the TCG cyber attack. We are insured now.