Co-op posts sales recovery in H1 2026

Following 2025 trading that was badly impacted by the disruption from a malicious cyber-attack, Co-op has announced group sales up 2.4% in the first half of 2026 reaching £5.6bn as the business benefitted from successfully stabilised operating systems and some positive early summer market conditions. However, the costs of recovery continued to be felt as it suffered a loss in underlying operating profit of £45m.

Food Retail regaining momentum

The recovery was solidly underpinned by Co-op’s largest operating division, Food Retail, which saw sales up 2.6% to £3.7bn against the background of a UK convenience market that saw sales fall overall in the period. The recovery was boosted by significant investment in improvements in both the store estate and the in-store offer. The investment of 1% margin in discounts and deals, including the extension of the Aldi Price Match range to 135 lines, helped drive footfall and has seen transactions return to their pre-cyber-attack level. A new campaign ‘Pop to Co-op’ now seeks to emphasise its strength as a destination for top-up missions.

Qcomm continued to grow well-ahead of the wider Food Retail business up 24% over the six-months and Co-op’s delivery options are now accessible through 90% of its store estate.

The business ended the period with 2,330 stores down eight on 2025, while six stores were either refurbished or relocated during the six months.

Partner co-op sales sharing in recovery

Co-op’s role as the key buying and distribution function for the other regional co-operative societies through the Federal Retail Trading Services (FRTS) group also showed a positive rebound after the disruption of 2025. The total value of goods supplied by Co-op to the other affiliated co-operatives was up by 1.9% to £989m in the half. The regional co-operatives have been impacted by the tough trading conditions affecting the wider UK convenience market, leading to a number of store closures which have reduced the total retail footprint operated by these businesses by 2%.

Wholesaling still facing headwinds

The Co-op’s wholesaling business, comprising the Co-op Wholesale (formerly Nisa) delivery business and its network of independently operated franchise stores, experienced flat sales overall on £683m. Co-op Wholesale continues to suffer from the impact of declining tobacco sales which is significantly affecting its independent retail customer base, but has successfully offset this downside with the recruitment of 164 new customer stores securing £142m of additional annual contract value in the year-to-date.

The network of Co-op branded franchise stores grew by 11 stores to reach a total of 76, boosting sales to the network by 26%.

Integration of Southern Co-op pending CMA findings

Southern Co-op (with 170 grocery stores as well as other retail assets) is now wholly owned by Co-op following the approval given by its membership earlier this year. However, currently that society is being maintained as a separate operational entity as the Competition and Markets Authority undertakes its investigation into the likely competitive impact of bringing the two businesses together. Once the CMA findings are completed the process of integration will then be subject to any conditions (such as store disposals) that may be required.

Having stabilised the business and regained momentum in the first half of 2026 Co-op indicates that H2 is delivering a further improvement in performance, boosted by both a good summer trading season and the continued investment in ensuring an increasingly competitive store estate and consumer offer.

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