Following the Budget, the Co-op Group has announced plans to “back Britain” by putting a targeted £1bn into the economy over the next 12 months.

The investment includes the retailer’s biggest ever wave of price reductions next year, taking in more than 1,000 products  in 2,300 stores and online. This, the Group says, will be focused on categories that support British farming and food.

Additionally, the investment will extend lower prices beyond the membership, which the Group says will “support the 15 million weekly transactions in its stores and to help families manage budgets”. 

The Group adds that it will continue to spend over £700m a year with British farmers and agriculture suppliers, maintaining its 100% British fresh and frozen meat commitment across all own-brand ranges and as an ingredient. This is alongside 100% British eggs and milk and continued sourcing of British grown produce. “Supporting the next generation of UK producers, suppliers and manufacturers and building a resilient and sustainable food chain is incumbent on all grocers,” it added. 

Other commitments will see the Group spend over £580m with Goods Not for Resale businesses that operate from the UK. Additionally, through its energy-buying arm Co-op Power, it is pledging more than £6.4m of energy procurement over the next 12 months, helping organisations cut costs and emissions.

In terms of its pension investments, the Group aims to direct more of its defined-contribution fund towards UK companies, “supporting sustainable growth and responsible investment in the economy”.

The Group – which saw a record 11 store openings in a single week at the end of November – also plans to continue investing in approximately 100 stores across the UK over the next 12 months – including new sites, relocations and refits.

The 2026 programme also includes launches of Co-op’s new sustainable showcase stores, which are designed to minimise environmental impact through innovative practices. 

“We are focused on creating local stores which are more than just a shop – they are a hub locally that contribute to local life and meet the needs of communities, conveniently,” said operations director Kate McCrae. 

In terms of its high-profile campaign on retail crime, the Group said it continues to invest £38m a year in deterrent measures in its stores. 

Earlier last month, the Group announced a £70m commitment through its Levy Share scheme to create 7,000 matched apprenticeships by 2030.

It hopes the move will boost skills and social mobility across the country – and points to Office for National Statistics data which warns that apprenticeship starts have dropped 31% since the government introduced the apprentice levy in 2017, leaving nearly one million young people out of education, work, or training.

Related: Co-op Group pledges £70m for the creation of 7,000 apprenticeships

The Group also provides £1m a year to its 38 Co-op Academies, funding additional support for pupils and families in need. This includes a Co-op Premium for  those eligible for free school meals, to support targeted curriculum, enrichment activities and essentials like uniforms and equipment, alongside an annual discretionary fund of £3,000–£7,000 for each headteacher to support families.

Animal welfare

Another announcement saw the Group adopt higher welfare standards across its continental meat supply chain, to be met by the end of the year.

The retailer says it will fully meet its cage-free commitment across its Spanish, German and Italian meat offer, with products such as Prosciutto, Parma Ham, Salami, Mortadella and Chorizo sourced from pigs raised without confinement.

Farrowing crates and sow stalls will now be banned across the retailer’s continental meat range, and follows a ban made in 2018 across its fresh pork, bacon, sausage, gammon and ham ranges.

Senior agriculture manager Joseph Keating said: “Meeting our 100% cage-free commitment across our continental meat range is a significant step forward for Co-op and reflects our unwavering dedication to lead the way in improving animal welfare standards across our supply chains. Our long-term partnership with the Compleat Food Group has been instrumental in delivering these improvements, and together we’re proud to set a new benchmark for the industry.”

Dr Tracey Jones, global director of food business, Compassion in World Farming, said: “We’re delighted the Co-op will meet its pledge to end the use of farrowing crates and sow stalls in its continental meat supply by year-end, fulfilling its 2025 commitment under Compassion’s Cage Free Award. Combined with its UK outdoor-bred pig production, and free-range eggs and own-brand egg products, the Co-op is demonstrating leadership in advancing the cage-free agenda.”

The Group’s longstanding supplier partner, Compleat Food Group, was intrinsic to the move, sharing a stated joint goal to improve animal welfare standards across Europe.

Credit rating

The Group’s announcements come not just at a challenging time for the UK, but after a diffiult year of its own after the cyber attack in spring, which disrupted stores supplies and hit trade.

As a result, business analyst S&P Global has lowered its long-term issuer credit rating on the Group to BB- from BB.

It has noted a 2.1% fall in revenue for the first half of 2025. “However, we note that Co-op’s market share in the third quarter to date in the food and wholesale markets is on track to recover,” it said.

With “ongoing membership expansion and more targeted assortment and pricing investments, in addition to the continued growth in e-commerce and quick commerce,” S&P expects “profitability will mostly recover in 12-18 months.”

S&P said the Group continues to face tight margins, wage pressures and  competition, but enjoys adequate liquidity. It expects the society to  recover from the cyber disruption by the end of 2025, “and over the next 12 months largely restore its profitability and credit metrics”.

A spokesperson for the Group said: “Following the impact of the cyber attack earlier this year, we acted swiftly to protect our systems and have since been focused on rebuilding momentum. Our underlying financial position remains strong, with maturities covered out to 2030.”