Co-op staff told to boost promotion of vapes after costly cyber-attack, document shows | Co-operative Group

The co-op has quietly told staff to increase its promotion of vaping in a bid to win back customers and sales following a devastating cyber attack.

The ethical retailer is making e-cigarettes more prominent in stores through new displays and additional advertising, according to an internal document seen by the Guardian. It also stocks a wider range of e-cigarettes and nicotine pouches.

The action plan is to overcome the massive sales slump following the April hack that left gaps on shelves.

The document, called Powering Up: Focus Sprint: Cigs, Tobacco and Vape, says: “Sales have not improved compared to pre-cyber.” “Why do we need to focus on this category?” In the section titled, it is stated that there are “£1 million less sales a week” and 100,000 fewer transactions.

He says: “We know that at least 40% of this is a new habit from customers who shop elsewhere because they can’t go without cigarettes, tobacco or vapes. This also means we’re losing out on sales that might have been in their carts.”

The Co-op’s approach to selling e-cigarette products in more than 2,000 convenience stores complies with UK law and government guidance, but staff have raised concerns about whether this goes against its stance as an “ethical” retailer.

The cooperative states on its website that it “puts principles before profits.” “Not only do we have clear financial and operational goals and employ 54,000 people, we are also a recognized leader in terms of our social goals and community-led programs,” he says.

The event took place at a time when concerns about youth e-cigarette use were increasing. evidence showing In recent years, there has been an increase in the number of young people under the age of 18 who have tried or used e-cigarettes. Brightly colored packaging and flavors like gum or candy floss are a big part of its appeal.

England’s chief medical officer, Prof Chris Whitty, expressed concern about the marketing of e-cigarettes, saying: “If you smoke, vaping is much safer; if you’re a non-smoker, don’t vape.”

A source told the Guardian that staff were not explicitly told to sell more e-cigarettes, but while their presence in the store had previously been spartan, there were now strategically placed advertisements in high-traffic areas and eye-catching display units.

“Before [the hack] “Even though I didn’t always enjoy the business, I respected the Co-op,” said the source. “They offer the good idea of ​​ethical shopping; You may pay a little more but they do things right. “This strategy goes against everything we have ever done.”

They said the cooperative is known for its ethical business model, which sets it apart from other companies. “This latest decision to exploit and profit from a known health issue is contrary to the values ​​on which the Co-operative was built and represents.”

The government’s tobacco and electronic cigarette bill, which is passing through parliament, will ban the advertising and sponsorship of electronic cigarettes. It will also restrict the flavours, packaging and display of e-cigarettes and other nicotine products.

A Co-op spokesperson said: “As a member-owned organisation, our long-standing commitment to ethics and responsible retailing remains steadfast and is at the heart of how we do business.

“The sophisticated cyber attack we have experienced means we are now even more focused on strengthening all aspects of our stores to meet the needs of shoppers.”

They added: “It is important to be clear that the sale of vaping products in our stores is fully compliant with all UK legislation and government guidance in terms of their recognized role as a successful way to quit smoking.”

Co-operative managers are trying to repair their finances after a cyber incident that forced them to shut down parts of their IT systems. In a recent business update, the retailer said this pushed it into the red for the first six months of the financial year.

The cyberattack caused gaps in grocery store shelves, while more than 800 funeral parlors were forced to revert to running some services through paper-based systems because they did not have access to digital services.

The turmoil has caused a cut in sales of more than £200 million and the group predicts the final bill will result in a £120 million hit to full year profits.

The document, seen by the Guardian, concerns the store-wide “Power Up” program covering all product categories.