After almost seven years at the Co-op Group, including four years as CEO, Shirine Khoury-Haq is stepping down. The move was announced as the organisation posted an unaudited 2025 loss of \u00a3126m (2024: \u00a345m loss), with debt increasing from \u00a355m to \u00a3317m.<\/p>\n
It follows a year of challenges for the organisation, including a far-reaching cyber attack<\/a> which affected the wider UK co-operative retail sector, and ongoing claims of \u2018toxic leadership\u2019<\/a> within some areas of the business. Current member-nominated director, Kate Allum, has been appointed Interim Group CEO, from 29 March.<\/p>\n The organisation believes the cyber attack had an estimated \u00a3285m direct impact on revenue and an estimated \u00a3107m impact on profitability \u2013 and that the event continues to have an ongoing impact on shopper behaviour. It added that evolving market dynamics and increased operating, regulatory and colleague costs also impacted the figures.\u00a0<\/p>\n Debbie White, chair of the Co-op Group, said: \u201c2025 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.\u201d<\/p>\n White said that to get back on track, the organisation has adjusted its commercial strategy and strengthened its partner offer while growing active membership. \u201cNow, we\u2019re looking ahead with a strong focus on customers, while continuing to prioritise the people who own our business, targeting 10 million active members by 2030.\u201d<\/p>\n Actions by the retailer include growing its quick commerce business by 15%, growing its Life Services division (up by 4% last year) and resetting its wholesale proposition as a multi-fascia provider. It has also invested \u00a3318m to support member and customer experience, including in technology and stores.<\/p>\n Revenue was down 2.3% year-on-year \u2013 but the Group stated that excluding the estimated cyber impact, revenue was broadly flat year-on-year, with Life Services and Food Retail businesses demonstrating growth. This led to an underlying operating loss of \u00a335m, which includes the estimated direct cyber impact of \u00a386m, as well as an additional circa \u00a3150m in cost headwinds. These headwinds include regulatory costs of \u00a347m, made up of National Insurance increases and new Extended Producer Responsibility charges, as well as investments in colleague pay.<\/p>\n Khoury-Haq said: \u201cTrading conditions remain difficult and the current geopolitical landscape is adding further instability, but we have reasons for optimism. Including our own estate and partners, we supply close to 8,000 stores; our new Commercial and Logistics business is turning this strength as a supplier into a path to growth.\u201d<\/p>\n She acknowledged that the retail industry is still under pressure from rising costs and cautious consumers, \u201cbut we\u2019re adapting: growing our online convenience business, offering more to health-conscious shoppers and investing in stores. We\u2019re confident in the road ahead.\u201d<\/p>\n On her decision to step down, she added: \u00a0\u201cIt has been an honour to lead our Co-op as CEO. It is not only a commercial enterprise, but also deeply embedded in communities, doing right by them and our members every day. Following last year\u2019s 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.<\/p>\n \u201cI want to thank all of our Co-op colleagues and members for their support over the years. I wish this wonderful organisation success in the future and, when the transition period is over, I look forward to continuing my relationship with our Co-op as a member owner.\u201d\u00a0\u00a0<\/p>\n Kate Allum said: \u201cIt is a privilege to step into the role of interim group CEO at such an important time for our Co-op. Ours is a business with a clear purpose, a compelling business strategy and a values-led approach to making a positive difference within the communities we serve across the UK. I look forward to working even more closely with our incredible colleagues, our members and the board and National Members Council as we continue to strengthen our Co-op for the long-term.\u201d<\/p>\n The organisation\u2019s current strategic ambitions are based on \u201cwhat consumers come to Co-op for,\u201d said a statement, including accessibility, value, and its ethical difference. Looking forward, it will prioritise business-to-business partnerships, developing its wholesale and FRTS services, franchising and food retail, and delivering as a democratic business.\u00a0<\/p>\n \u201cCo-op is owned by its members and has continued to drive their participation in the business,\u201d said the statement. As well as extending AGM voting rights to 1.5m additional members, it continues to adapt its hanging sourcing policies based on member priorities.<\/p>\n