Five things we learned at the IGD Co-op Trade Briefing 2025

Thursday 18 September saw the senior team for Co-op Food take to the stage again at Co-op Live in Manchester in front of a packed audience of suppliers. Fielding an extensive line-up of speakers, the business provided an update on its strategic position and set out its current and future priorities that will shape the agenda for its evolving trading relationships for 2026 and beyond.

Over the course of the day my five key takeaways were:

1. The newly created Commercial and Logistics function will bring enhanced scale opportunities to suppliers

Led by Matt Hood, as Chief Officer, the new Commercial & Logistics function specifically aims to better represent Co-op’s role as a B2B channel for the independent co-operative societies in FRTS (the Federal Retail Trading Services) group as well as the independent retailers serviced through Co-op Wholesale (Nisa). Making up 70% of all stores supplied by Co-op the new organisation aims to service the needs of these more successfully and unlock the fuller value that they represent structured around three operational pillars. The first is a new independent buying group led by Sinead Bell which will operate on behalf of all the stakeholders including Co-op company owned stores, the independent societies and Co-op Wholesale. The second will be a parallel procurement operation for goods not for resale to supply all these stakeholders. Then finally the third pillar of this new structure will be a group-wide logistics function under Derek Furnival, offering best-in-class small store and high street distribution services.

2. Growing membership numbers and participation are an expanding platform for shopper engagement

Co-op is well on its way to achieving its membership target of eight million. In 2025 member numbers have topped 6.6 million and the data offered by rising participation is giving the business unique levels of insight into its shoppers. This membership participation is rising especially fast with those in the 16-24 age bracket, where the growth in member transactions has risen by 61% to 17.3 million. The data also shows increasingly the enhanced value of shoppers who spend both online and in store, where members who do both are worth 75% more than the average shopper. At the same time the number of these omni-channel shoppers has increased by 24%.  As well as gathering transaction data Membership is also a platform for gathering information on changing lifestyles. For example, survey shows that some 9% of responding Co-op members are now using GLP-1 weight loss drugs, providing a significant target for products relevant to supporting the dietary needs of these customers. However, across the entire Co-op store estate the highest level of membership penetration is found in local, rural sites where 60% of transactions are member transactions, showing how important these traditional types of catchments still are Co-op.

3. The Co-op Food proposition strategy is stated as: ‘Shopping Conveniently Without Compromise’

The strategy is focused around an optimal balance of three criteria: access, value and quality, by which Co-op aims to drive three key shopper perceptions:

• I can get what I want, when I want, where I want

• Co-op is good value, and as a member I save even more

• I trust Co-op brand to always be delicious and responsibly sourced

‘Access’ is a well-established strength through Co-op’s store reach, but this is now boosted by Q comm with over 80% of the UK population being within reach of delivery in 20 minutes. But access also means that shoppers have access to products which support the key missions and the specific access needs of the diverse communities Co-op serves.

In terms of ‘Value’ Co-op is not seeking to win on price but the strategy is to neutralise any negative shopper perception, so that customers feel confident of good value. To this end Aldi Price Match is a powerful tool that helps shift customer opinion and underpins Co-op’s value credentials. Meanwhile reducing the number of promotions is important to clarify the message at shelf-edge. From a ‘Quality’ perspective, Co-op has done extensive work to build the Co-op brand and continues to elevate and shine a light on its product range, making it more accessible and in addition prioritising specific, relevant trends and delivering on the ‘meals’ mission above all.

4. Co-op’s supplier partnerships are moving into a new era

Co-op wants to work closer with suppliers on customer-focused solutions that drive sustainable mutual growth and not just transactional, short-term wins. To this end it is seeking to build fewer, deeper, more strategic relationships with its supply base and progress towards this is now being reflected in the improving scores seen in the GCA and Advantage Surveys.

Central to this process is the changing way Co-op will complete trading terms for the future. The focus for the change is simplification. Co-op wants to remove complexity, risk, and inefficiency from these relationships. While recognizing that such change can be difficult and requires trust, Co-op guarantees that suppliers making the shift to align with the new direction will benefit.

Perhaps the biggest single change required is the focus on shifting central investment income into cost price. This is critical to the Co-op mission to delivering value, all of the time. Co-op sees reliance on central income as a value barrier that needs to be removed so it can deal once and for all with ‘unattractive prices’ and an excess of promotions that only offer value some of the time. As well as strengthening its existing relationships Co-op believes its new priorities will create opportunities with new partners and customers, enabling all to scale effectively and deliver real customer value.

5. Co-op is committed to new platforms for growth

As the leader in the UK Q-comm market UK Co-op has seen its sales in the channel surpass £500 million and continue to grow rapidly in 2025. While the cyber-attack temporarily interrupted that growth trajectory now Co-op has recovered, Q-comm sales have regained their prior level and have even exceeded that. Now Co-op aspires to double its Q-comm sales by 2030 against the background of a sector that is evolving fast as more international delivery players get involved such as Door Dash through its acquisition of Deliveroo, one of Co-op’s biggest partners.

In its drive to reach £1 billion Co-op’s next big boost to Q-comm sales will be the major expansion of its partnership with Amazon. This will add a fifth plank to its capability and reach alongside its partnerships with Deliveroo, Just East and Uber Eats in addition to Co-op’s own in-house platform. Co-op and Amazon have had a low-key partnership for some years but now this is to be extended to some 1,000 stores giving it a national presence. This partnership will allow shoppers to order from these stores through Amazon and then the delivery will be provided by Co-op’s own new Peckish service launched in February this year.

Co-op is also actively innovating in its store operations with the launch of the unique new format, Co-op On The Go. The first of these new micro stores opened in Solihull in July and seeks to leverage Co-op’s capability in the food-for-now space, offering additional ranging in hot food with the whole offer underpinned with its market-leading value proposition including the lowest priced lunch time meal deal at £3.50 (Member Price).