The Co-op Group is planning a significant expansion of its retail and funeral services through a proposed acquisition of Southern Co-op.
The deal, if approved by members, would add hundreds of new grocery stores and funeral homes, as well as Starbucks branches, to the retail giant's portfolio.
The proposals involve integrating Southern Co-op's 300,000 members into the Co-op Group's existing seven million members.
The acquisition would encompass approximately 300 of Southern Co-op's food, funeral and Starbucks stores, as well as its three crematoriums.
This move would mark the Co-op Group's re-entry into the growing crematorium market, complementing its existing funeral services.
While financial terms of the potential transaction have not been disclosed, Southern Co-op, founded in Portsmouth in 1873, operates primarily in the south of England, including London, under the Co-op Food and Welcome brands.
The societies are awaiting approval from members to proceed with the merger.
Cooperatives refer to businesses that are owned and controlled by their members, who have a say in how the business is run.
Southern Co-op members will vote on the proposals which, if approved by members and regulators, are expected to go ahead in the final quarter of 2026.
The merger would occur through a process called “transfer of commitments,” which allows two companies to join together.
Ben Stimson, chief executive of Southern Co-op, said the deal would secure the future of the business, which has recently grappled with falling profits and higher costs.
He said: “By coming together, we can secure Southern Co-op’s co-operative future as part of a stronger combined Co-operative Group, whilst creating an even stronger voice nationally and internationally to promote the co-operative cause.”
Kate Allum, acting chief executive of the Co-op Group, said: “Joining forces between the Co-op Group and Southern Co-op will create new opportunities for members to access a greater range of benefits across a wider partnership, with more business opportunities and in turn, more benefits for themselves and their communities.”
