Property

Co-op’s store expansion highlights urgent call for business rates reform to save UK high streets

Monday, 10 November 2025 5:04AM UTC

Co-op plans to open over 50 new stores across the UK before Christmas, while calling for urgent government action on business rates to secure the future of small shops and local economies amidst pressing economic challenges.

Co-op is set to significantly expand its retail presence across the UK with plans to open over 50 new or transformed stores before Christmas, marking a substantial investment of more than £200 million in the past year. The openings will span a wide range of store formats and locations, reflecting the diversity of communities Co-op serves. Notable among these is the new store at the Brent Cross Town development in London, where Co-op will be the first permanent retailer on site. Additionally, the retailer is expanding its micro-format Co-op On The Go stores with five new locations including Aylesbury, Kingston, and Leamington. The geographic reach of these openings stretches from Brora in the Scottish Highlands to Devon and Cornwall in the south. Co-op has also debuted a new 2,500 sq ft franchise store at Lancaster University, increasing its university campus franchise portfolio to 11. This store caters to a diverse international student body with offerings including food to go, hot meals, Costa Coffee, and an extended world foods range, alongside home delivery, member pricing, and Fairtrade goods.

This expansion comes as Co-op intensifies its call for urgent business rates reform, underscoring the need for government action to secure the future of small shops and community retail. Co-op Group CEO Shirine Khoury-Haq stated the company’s belief in the future of the high street, but emphasised that sustained growth requires certainty, particularly around business rates. The Co-op argues that reform is essential for the 99% of retailers running small stores to plan confidently, protect jobs, and maintain thriving local economies. The company sees an opportunity for the government in the upcoming autumn budget to deliver on promised reforms to provide stability that will enable retailers of all sizes to invest and grow.

Co-op’s warnings about the critical state of small businesses are echoed by research showing that without urgent business rates reform, up to 60,000 small shops and 150,000 jobs could be at risk. Surveys indicate that 69% of UK adults lack confidence in the government's commitment to provide lasting relief for small businesses. Further data reveals that 10% of small high street business owners might need to lay off staff without reforms, while one in eight fear closure. Moreover, 77% of shop owners in England see business rates reform as vital for their survival, with many suggesting that without it, they would struggle to grow, freeze pay rises, or halt hiring altogether. This paints a stark picture of the precarious position many small retailers face and the broader economic consequences for communities dependent on them.

The government's awareness of these challenges is reflected in recent statements by UK Finance Minister Rachel Reeves, who revealed that the forthcoming November 26 budget will prioritise economic growth through reforms to the business rates system. Acknowledging the outdated nature of the current system, Reeves emphasised the need for changes that alleviate financial pressure particularly on physical retail outlets and small high street businesses, creating a more supportive environment suited to modern commercial realities.

Alongside opening new stores, Co-op is accelerating its convenience store growth strategy with plans to open a total of 75 new stores this year, including both company-owned and franchise stores. The retailer also intends to refurbish around 80 existing stores to maximise their potential, highlighting a dual focus on expansion and modernisation to meet evolving consumer needs.

Independent retailers supported by Co-op Wholesale have also contributed to the chorus calling for business rates reform, sharing firsthand accounts of the human and economic strain caused by rising costs and uncertainty. These family-run shops are pivotal in maintaining local community connections and the vitality of high streets but stress that meaningful government support is crucial for their continuation.

In summary, Co-op’s significant store expansion and investment underline its commitment to the UK’s retail future, while simultaneously spotlighting the urgent need for business rates reform to sustain small businesses and local economies. The upcoming autumn budget represents a critical juncture for the government to deliver on long-awaited reforms that could shape the viability and growth prospects of thousands of small retailers nationwide.

📌 Reference Map:

^[1] The Grocer – Paragraphs 1, 2, 3, 4, 6, 7
^[2] Co-op Media Release – Paragraphs 4, 5
^[3] Food Manufacture – Paragraphs 4, 5
^[4] Grocery Gazette – Paragraphs 4, 5
^[5] Reuters – Paragraph 5
^[6] Co-op Media Release – Paragraph 6
^[7] Co-op Wholesale – Paragraph 7

Source: Noah Wire Services

More on this

https://www.thegrocer.co.uk/news/co-op-to-open-50-new-stores-before-christmas-as-it-calls-for-business-rates-reform/711638.article - Please view link - unable to able to access data
https://www.co-operative.coop/media/news-releases/co-op-warns-60-000-small-shops-and-150-000-jobs-at-risk-without-urgent - Co-op has warned that 60,000 small shops and 150,000 jobs could disappear without urgent business rates reform. Research shows 69% of UK adults lack confidence in the government's commitment to provide relief for small businesses. Without reforms, 10% of small high street business owners say they would need to lay off staff, and 1 in 8 say they would be at risk of closure. The Co-op is calling for the government to deliver maximum support to protect small businesses and communities.
https://www.foodmanufacture.co.uk/Article/2025/10/13/co-op-warns-150k-jobs-at-risk-without-urgent-business-rates-reform/ - Co-op has warned that 150,000 jobs are at risk without urgent business rates reform. The retailer is calling for the Autumn Budget to include a meaningful long-term reduction in rate bills, with 77% of small high street shop owners in England saying reform is essential for survival. The findings also show that 44% of small high street shops would struggle to grow without protections, 36% would freeze pay rises, and 26% would halt hiring.
https://www.grocerygazette.co.uk/2025/10/13/co-op-warns-that-around-60000-shops-at-risk-due-to-business-rates/ - Co-op has warned that around 60,000 small shops and 150,000 jobs are at risk if changes to the business rates reform do not take place. The research found 69% of UK adults are not confident the Government will deliver on its commitment to provide relief for small businesses, despite the plans being shared in prior budgets. Additionally, job positions are at risk, with 10% of business owners stating they would need to cut off staff and 1 in 8 claiming they would be at risk of closure.
https://www.reuters.com/world/europe/uks-reeves-targets-growth-with-business-rates-reform-small-firms-2025-11-04/ - UK Finance Minister Rachel Reeves announced that her upcoming budget, set for November 26, will prioritise economic growth through reforms to the business rates system. In a pre-budget speech, Reeves acknowledged that the existing system is outdated and not suited for the digital age. Her proposed changes aim to alleviate financial pressure on physical retail outlets and small businesses, particularly those operating on the high street. The reforms are intended to create a more supportive environment for small enterprises and adapt to modern business realities.
https://www.co-operative.coop/media/news-releases/co-op-accelerates-convenience-growth-with-75-new-stores-planned-to-open-in - Co-op has revealed its commitment to continued convenience growth with a planned 75 new Co-op stores opening this year (2025) across the UK. The new stores will be both Co-op estate stores and Co-op franchise stores, a sector the convenience retailer has actively pursued recently with strong growth. In addition to the new stores, around 80 further stores will undertake major refurbishments in 2025, transforming the stores to maximise the potential of Co-op’s existing portfolio of properties.
https://www.coopwholesale.co.uk/corporate/news-press-office/co-op-wholesale-partners-amplify-urgent-call-for-business-rates-reform/ - Independent retailers across the UK are calling on the Government to extend business rates relief in the Autumn Budget, warning that thousands of high street shops could be at risk without urgent action. Five Co-op Wholesale partners have shared their experiences as part of Co-op’s On Your Corner, In Your Corner campaign, highlighting the human and economic impact of rising costs and uncertainty. Together, their stories reveal a shared theme: that local, family-run shops are doing everything they can to keep communities connected and high streets alive, but can only continue to do so with meaningful support.

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: 10

Notes: The narrative is current, with the earliest known publication date being 10 November 2025. The Co-op's announcement on 10 November 2025 aligns with the report's publication date, indicating freshness. ([thegrocer.co.uk](https://www.thegrocer.co.uk/news/co-op-to-open-50-new-stores-before-christmas-as-it-calls-for-business-rates-reform/711638.article?utm_source=openai))

Quotes check

Score: 10

Notes: The direct quotes from Co-op Group CEO Shirine Khoury-Haq in the report are consistent with those in the Co-op's official press release dated 10 November 2025, suggesting originality. ([co-operative.coop](https://www.co-operative.coop/media/news-releases/co-op-calls-for-government-to-finish-the-job-on-business-rates-reform-as-it?utm_source=openai))

Source reliability

Score: 10

Notes: The narrative originates from The Grocer, a reputable UK trade publication, enhancing its credibility. ([thegrocer.co.uk](https://www.thegrocer.co.uk/news/co-op-to-open-50-new-stores-before-christmas-as-it-calls-for-business-rates-reform/711638.article?utm_source=openai))

Plausability check

Score: 10

Notes: The Co-op's plans to open over 50 new or transformed stores before Christmas are consistent with their previous announcements and align with their ongoing expansion strategy. ([co-operative.coop](https://www.co-operative.coop/media/news-releases/co-op-accelerates-convenience-growth-with-75-new-stores-planned-to-open-in?utm_source=openai)) The call for business rates reform is a known stance of the Co-op, reflecting their advocacy for small businesses. ([co-operative.coop](https://www.co-operative.coop/media/news-releases/co-op-calls-for-government-to-finish-the-job-on-business-rates-reform-as-it?utm_source=openai))

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary: The narrative is fresh, original, and sourced from a reputable outlet. The claims are plausible and consistent with the Co-op's known expansion plans and advocacy for business rates reform.

retail expansion
business rates reform
small businesses