International

Co-op accelerates store expansion despite cyber attack challenges and calls for urgent business rates reform

Monday, 10 November 2025 5:02AM UTC

The Co-op plotts a significant growth trajectory with plans to open or refurbish 50 stores before Christmas, amidst recovery efforts from a major cyber attack and calls for urgent government reforms to support small retailers across the UK.

The Co-op is pressing ahead with plans to open or refurbish 50 stores by Christmas, marking a significant phase in its recovery from a major cyber attack earlier this year. This expansion includes 14 new stores, such as its first permanent outlet at the Brent Cross Town development in London, five new micro-format ‘on the go’ shops, and a franchise store at Lancaster University. Alongside these, numerous locations that had been closed for extended refurbishments will reopen with refreshed designs and product ranges, contributing to a total investment of over £200 million across more than 200 sites in the current financial year. The group operates over 2,300 food stores and serves around 6.9 million members.^[1]^[2]

The cyber attack in April had a severe impact on the Co-op’s operations, leading to roughly £206 million in lost sales and an estimated £120 million hit to annual earnings. Hackers employed social engineering tactics, impersonating workers to gain account access; however, they were unable to install ransomware or cause further platform damage. The attack also resulted in stolen data for all the Co-op’s members, leaving shelves bare and disrupting supply chains.^[1]^[7]

In response to the attack, the Co-op launched a ‘thank you’ initiative in June, offering a 25% discount to its 6.5 million members, allowing them to save £10 on a £40 shop for one week. This move was designed to express gratitude for member support during the disruption and aid in restoring normal trading conditions.^[3]^[4]

Alongside its expansion efforts, the Co-op is urging the UK Government to urgently reform business rates ahead of the autumn Budget. The group highlights that reforms are vital for sustained growth and investment in the high street, particularly benefiting the 99% of retailers operating small stores. Research commissioned by the Co-op shows that around 60,000 small shops and 150,000 jobs could be at risk without such reforms, with 69% of UK adults sceptical that the Government will follow through on its promises to provide relief for small businesses. Shirine Khoury-Haq, Co-op chief executive, emphasised the importance of business rates reform to give retailers stability, protect jobs, and ensure local economies thrive. She noted that the Co-op is demonstrating what is possible when businesses commit to communities and is urging the government to match this commitment with action in the upcoming Budget.^[1]^[5]^[6]

The Co-op’s push for business rates reform underscores a broader concern about the future viability of local high streets, especially for small retailers navigating challenging economic conditions post-pandemic and amid rising costs. The company’s investment and expansion plans illustrate confidence in the potential for retail growth, but also highlight the critical role of government policy in providing the stability needed for businesses to invest and flourish.

📌 Reference Map:

^[1] (The Independent) - Paragraphs 1, 2, 4, 5
^[2] (ITV News) - Paragraph 1
^[3] (Co-op Media Release) - Paragraph 3
^[4] (Grocery Gazette) - Paragraph 3
^[5] (Grocery Gazette) - Paragraph 5
^[6] (Co-op Media Release) - Paragraph 5
^[7] (Evening Standard) - Paragraph 2

Source: Noah Wire Services

More on this

https://www.independent.co.uk/news/business/government-budget-london-coop-group-b2861846.html - Please view link - unable to able to access data
https://www.itv.com/news/2025-11-09/co-op-to-open-or-refurbish-dozens-of-stores-amid-cyber-attack-recovery - The Co-op is advancing with plans to open or refurbish 50 stores by Christmas, aiming to recover from a significant cyber attack. This expansion includes 14 new stores, five micro-format 'on the go' stores, and a franchise at Lancaster University. The initiative is part of a broader strategy to invest over £200 million in its store estate, with a total of more than 200 sites being opened or refurbished in the current financial year. The Co-op is also advocating for business rates reform to support high street investment.
https://www.co-operative.coop/media/news-releases/co-op-launches-cyber-thank-you-initiative-for-members-ahead-of-peak-summer - In response to a recent cyber attack, the Co-op launched a 'thank you' initiative offering a 25% discount to its six and a half million members. This promotion, running for one week from 18 June 2025, allows members to save £10 on a £40 shop in stores. The initiative aims to express gratitude to members for their support during the challenging period and is part of the Co-op's efforts to recover and resume normal trading operations.
https://www.grocerygazette.co.uk/2025/06/18/co-op-launches-member-discount/ - Following a cyber attack that disrupted its operations, the Co-op introduced a 25% in-store discount as a thank-you gesture to its 6.5 million members. The offer, available from 18 June 2025, enables members to save £10 on a £40 purchase. This initiative is part of the Co-op's strategy to recover from the cyber attack and to grow its membership to eight million by 2030.
https://www.grocerygazette.co.uk/2025/10/13/co-op-warns-that-around-60000-shops-at-risk-due-to-business-rates/ - The Co-op has warned that around 60,000 small shops and 150,000 jobs are at risk if changes to business rates reform do not take place. Research indicates that 69% of UK adults are not confident the Government will deliver on its commitment to provide relief for small businesses. The Co-op is calling for property tax reform and increased certainty from the Government ahead of the autumn Budget to support high street investment and protect local economies.
https://www.co-operative.coop/media/news-releases/co-op-warns-60-000-small-shops-and-150-000-jobs-at-risk-without-urgent - The Co-op has warned that 60,000 small shops and 150,000 jobs could disappear without urgent business rates reform. Research shows that 69% of UK adults lack confidence that the Government will deliver on its promise of relief for small businesses. The Co-op is urging the Government to commit to maximum levels of relief in the Autumn Budget to protect high streets and local communities.
https://www.standard.co.uk/business/business-news/cooperative-group-the-coop-government-coop-jaguar-land-rover-b1249577.html - The Co-operative Group is set to take a full-year earnings hit of around £120 million from a 'malicious' cyber attack that disrupted its operations. The retailer reported an £80 million blow to its interim earnings and expects a further £40 million impact over the second half of the year. The cyber attack led to stock shortages and data theft affecting all its 6.5 million members.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 9

Notes: The narrative is recent, with the earliest known publication date being 9 November 2025. The Independent and ITV News both reported on the Co-op's plans to open or refurbish 50 stores by Christmas, marking a significant phase in its recovery from a major cyber attack earlier this year. The report includes updated data and quotes, indicating a high freshness score. No discrepancies or recycled content were identified.

Quotes check

Score: 10

Notes: The quotes attributed to Co-op Group chief executive Shirine Khoury-Haq are consistent across the sources, with no variations or earlier appearances found. This suggests the quotes are original and not reused from previous materials.

Source reliability

Score: 10

Notes: The narrative originates from reputable organisations: The Independent and ITV News. Both are well-established UK news outlets known for their journalistic standards, lending credibility to the report.

Plausability check

Score: 10

Notes: The claims made in the narrative are plausible and supported by other reputable sources. The Co-op's plans to open or refurbish 50 stores by Christmas align with its previous announcements and recovery efforts following the cyber attack. The report also highlights the Co-op's call for business rates reform, which is consistent with its ongoing advocacy for small retailers.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary: The narrative is recent, with no evidence of recycled content or discrepancies. The quotes are original and consistent across reputable sources. The report originates from credible organisations and presents plausible claims supported by other reputable outlets. Therefore, the overall assessment is a PASS with high confidence.

Retail expansion
Cyber attack recovery
Business rates reform