Co-op UK Posts Weaker Full-Year Results, CEO Steps Down

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Co-op UK Posts Weaker Full-Year Results, CEO Steps Down

Co-op UK has reported an underlying operating loss and a decline in revenue in its 2025 financial year, and said chief executive Shirine Khoury-Haq will step down after four years in the role.

Khoury-Haq has spent seven years at Co-op UK and has steered the business through significant transformation, including a 95% reduction in debt and a 30% increase in profit between 2022 and 2024.

She also led the company through a major cyber-attack in 2025 and was instrumental in developing a multi-year strategy to help Co-op's recovery.

Khoury-Haq stated, “Following last year’s cyber attack, the organisation is now ready to deliver on an ambitious strategy of stabilisation and transformation.

“This extends beyond the timeframe I had planned for my CEO tenure, and now is the right moment to hand over to leadership that can commit to seeing the strategy through.”

Kate Allum

Kate Allum will step in as interim chief executive after Khoury-Haq steps down from the role on 29 March.

Allum currently serves as a member-nominated director on the board of Co-op UK and brings extensive board-level and executive leadership experience.

She has led complex organisations through periods of change and transformation, in addition to 20 years of experience within the food industry.

She served as the chief executive of UK-owned dairy co-operative Cedo Limited and First Milk Limited.

Debbie White, group chair, commented, “Her appointment reflects the Board’s confidence in her ability to lead with clarity, stability and purpose, while continuing to champion the interests of our members, customers and colleagues.”

Full-Year Results

Co-op UK saw a 2.3% decline in full-year revenue as it was impacted by a cyber attack, a decline in the convenience market and changing consumer behaviour.

The group noted that revenue was broadly flat year-on-year, excluding the impact of the cyberattack.

Its life services and food retail businesses demonstrated growth, offsetting the decline in its wholesale unit.

Underlying operating loss for the year amounted to £35 million, including an estimated direct cyber impact of £86 million and additional circa £150 million in cost headwinds, which was partly offset by improvements in other segments.

White added, “2025 was a challenging year, but those challenges have helped us reshape Co-op for the future. Despite a cyber attack and tough market conditions, our colleagues have shown incredible resilience, keeping communities served and essential services running.

“To get back on track, we have adjusted our commercial strategy and strengthened our partner offer while substantially growing active membership. Now, we’re looking ahead with a strong focus on customers, while continuing to prioritise the people who own our business, targeting ten million active members by 2030.”

Outlook

Co-op aims to focus on resuming its 2024 trajectory, where its performance demonstrated a 35% increase in underlying operating profit.

It is, however, cautious of external pressures, including volatility and weak consumer confidence.

Co-op plans to cut £200 million in annual operating costs in 2026.

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