Co-op to take over 200 more UK supermarkets – rescue deal | UK | News
The Co-op is set to take over hundreds more supermarkets across the UK as part of a rescue deal aimed at saving a struggling regional retailer from potential collapse.
Southern Co-op members voted overwhelmingly in favor of a merger with the national Co-op Group, paving the way for almost 200 convenience stores to change hands in one of the biggest shakeups in the industry in recent years. The proposal received support from 97.07% of the members at the Special General Assembly meeting held on Tuesday, with a total of 13,361 votes cast.
A spokesman for Southern Co-op confirmed the result, saying members had voted to transfer the association’s operations to a subsidiary of the Co-op Group.
If the deal is approved in a second vote later this month, more than 300 businesses currently operated by Southern Co-op, including food stores, funeral homes and cafes, will become part of the national chain.
The combined business will generate annual sales of around £11.5bn and operate close to 2,500 stores across the country.
Ben Stimson, chief executive of Southern Co-op, has previously warned that rejecting the merger could have serious consequences for the retailer, including branch closures and possible administration.
The regional cooperative has faced increasing financial pressures in recent years due to rising operating costs, falling profits and difficult trading conditions.
Mr Stimson said the merger would help secure the long-term future of the business while strengthening the wider co-operative movement.
He said: “By coming together, we can secure Southern Co-op’s co-operative future as part of a stronger united Co-operative Group, while also creating an even stronger voice nationally and internationally to advance the co-operative cause.”
He added that joining forces with the larger group would create a more resilient organization that can support customers, staff and communities across Britain.
A second Special General Meeting will now be held on May 21, at which members will be asked to vote again in accordance with the legal requirements governing the transfer.
Southern Co-op said continued member engagement will be crucial to closing the deal.
A spokesman said: “Whilst the outcome of the first vote is encouraging, the second deciding vote is equally critical and we welcome the continued support and involvement of our members.”
The proposed merger marks a significant period for the convenience retail industry and could reshape the presence of Co-op stores on high streets across the country.
