Co-op to open or refurbish 50 stores as it recovers from £120m cyber attack hit

The Co-op has announced plans to open or refurbish 50 stores before Christmas, marking a major investment drive as it continues to recover from the fallout of a devastating cyber attack earlier this year.

The retailer said the latest openings would bring its total store launches and refurbishments to more than 200 this financial year, representing over £200 million in investment across its estate.

The group, which has 6.9 million member-owners and operates more than 2,300 food stores nationwide, said the programme underscores its “confidence in the future of the high street” — but warned that long-promised business rates reform is urgently needed to sustain investment.

“We’re investing in stores and communities right across the UK because we believe in the future of the high street,” said Shirine Khoury-Haq, Co-op Group chief executive.

“But sustained growth needs certainty. Business rates reform is vital if retailers — especially the 99% who run small stores — are to plan with confidence, protect jobs and keep local economies thriving.”

New stores and refurbishments

The Co-op confirmed that its latest rollout includes:
• 14 brand new stores, including one at the Brent Cross Town development in London — where it will become the site’s first permanent retailer.
• Five micro-format ‘on the go’ stores designed for busy urban locations.
• A new franchise store opening at Lancaster University.
• The remaining outlets will be re-openings of previously closed sites following major refurbishments featuring updated designs and expanded product ranges.

The push comes as the Co-op works to recover from a large-scale cyber attack in April, which it said would reduce annual earnings by around £120 million and cause £206 million in lost sales.

Hackers reportedly impersonated employees to gain access to internal systems, stealing data for all members. While the attackers were able to copy a company file, they failed to install ransomware or inflict deeper damage on the retailer’s digital infrastructure.

The incident temporarily left some stores with bare shelves and disrupted supply chains, prompting the group to accelerate investment in digital resilience and security.

Ahead of the autumn Budget, the Co-op has joined a chorus of major UK retailers urging the Chancellor Rachel Reeves to deliver property tax reform.

Business rates — based on commercial property values — have long been criticised by high street chains and small shops as outdated and unfairly weighted against bricks-and-mortar businesses.

Khoury-Haq said the government had “an opportunity to do its part” by modernising the system to make investment in high street stores viable.

“Co-op is showing what’s possible when businesses commit to communities,” she said. “The government now has an opportunity in the autumn Budget to do its part by delivering reform that’s long been promised — giving every retailer, from small to large, the stability to invest and grow.”

The Co-op’s expansion drive offers a rare boost of optimism for the UK’s embattled retail sector, which continues to grapple with rising operating costs, inflation, and weakened consumer confidence.

Analysts say the retailer’s move demonstrates the resilience of community-focused convenience models and highlights the continuing relevance of physical retail spaces, even as online competition intensifies.

If successful, the programme could help the Co-op regain lost ground and reinforce its reputation as one of the UK’s most community-oriented retailers — proving that even in a challenging environment, the high street still has room to grow.

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Co-op to open or refurbish 50 stores as it recovers from £120m cyber attack hit