The Co-operative Group has announced that chief executive Shirine Khoury-Haq will step down at the end of March, capping a turbulent year in which the mutual swung to a loss and grappled with mounting operational and economic pressures.
Ms Khoury-Haq, who has led the group since 2022, will be replaced on an interim basis by Kate Allum as the board looks to steer the business through a reset phase. Her departure comes alongside a trading update in which the Co-op said it had been “navigating headwinds” but was moving forward with “confidence, clarity and focus.”
The group reported a sharp deterioration in performance, posting an underlying operating loss after the previous year’s profit, as revenues slipped amid weaker consumer demand and disruption to trading. A significant cyber attack compounded the pressure, causing product shortages and payment issues that weighed heavily on sales and profitability.
Rising costs have added to the strain. The Co-op flagged substantial increases linked to wages, regulatory changes and environmental measures, alongside persistent inflation and geopolitical uncertainty that have dented shopper confidence. Management warned that these pressures are likely to persist into 2026, leaving the business operating in what it described as a highly volatile environment.
In response, the company is pushing ahead with cost-saving measures and plans to strip out hundreds of millions of pounds from its operating base, while doubling down on its core food retail and life services businesses. It is also seeking growth through wholesale, franchise and B2B channels as part of a broader effort to rebuild margins and resilience.
Ms Khoury-Haq said the group had made progress despite the backdrop, adding that “it 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’s 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.”
Her exit marks a pivotal moment for the Co-op as it looks to stabilise performance and restore profitability under new leadership.
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