Convenience retail chain follows Budget announcement by outlining extensive plan for coming year
The Co-op has unveiled a £1 billion plan to ’Back Britain’ with a major round of price reductions and ongoing commitment to farming suppliers, among other announcements.
Following the Autumn Budget, Co-op said its spend over the coming 12 months would support Britain’s consumers, businesses and high streets, with a focus on lowering prices for both members and customers, while backing British sourcing, community-focused retailing and skills development.
It comes as new insight from Co-op’s latest membership research shows that 58 per cent of people now rank the cost of living as one of their top-three concerns, up from 51 per cent in late 2024. Concern is even higher among younger members, with 72 per cent of those aged 18 to 34 placing cost of living in their top-three worries.
Shirine Khoury-Haq, Co-op Group CEO, said: “Today’s Budget provides the clarity and certainty that small shops and local communities have been waiting for. The government’s decision on business rates is a welcome and important step that will help protect jobs, strengthen local economies and support high streets across the country.
“Co-op is stepping up alongside this commitment, facilitating over £1bn of spend into the UK economy over the next year. This includes our biggest-ever number of price reductions to help with the cost of living, continued investment in British farmers and suppliers, and a focus on keeping high streets vibrant and safe.”
Substantial price reductions
The Co-op said it is preparing one of its largest ruonds of price reductions next year, with a plan to significantly invest in lowering prices on over 1,000 products across its ranges in 2,300 stores and online. The investment will be focused on categories that support British farming, produce, protein and dairy.
Additionally, the investment will extend lower prices beyond just Co-op members, which it said will support the 15 million weekly transactions that occur in Co-op shops and to help families manage weekly budgets.
The retailer emphasised that it will continue to spend over £700 million per year with British farmers and agriculture suppliers, maintaining its 100 per cent British fresh and frozen meat commitment across all own-brand ranges and when used as an ingredient.
That is alongside 100 per cent British eggs and milk and continuing to source British-grown produce, including a 100 per cent British potatoes and carrots all-year-round commitment. The group also called on the government to ensure that UK farmers are properly supported to ensure that they can play their crucial role both in feeding the nation and tackling the climate and nature crises.
Store investment
The Co-op is also planning to continue investing in approximately 100 stores across the UK over the next 12 months, including new openings, redevelopments, relocations and refits.
The 2026 store programme includes launches of Co-op’s new sustainable showcase stores, which are designed to minimise environmental impact through innovative practices. Earlier this month, Co-op confirmed 50 new and refurbished stores will open before Christmas as part of its ongoing investment in local retail and jobs.
Over the past five years, Co-op has shared £63mn through its Local Community Fund, supporting 22,500 local causes across the UK, from food banks and youth projects to mental wellbeing initiatives, and it said new funding will help it reach thousands more.
It has also has set a target of creating 7,000 matched apprenticeships by 2030 through its Levy Share service, which has already transferred £40mn of unspent apprenticeship levy from larger employers to smaller businesses and community organisations since 2021. Over the next 12 months, a further £6mn is expected to be shared, contributing to a projected £70mn total by 2030.
