Last year’s cyber attack on the Manchester based Co-op had a £285m direct impact on revenue and an estimated £107m impact to profitability as the group shared a trading update for 2025
In what it described as an atypical year it reported changed shopper behaviour following the disruption, with transactions affected throughout the year in food stores, evolving
Evolving market dynamics, including health-led consumer behaviour shifts and layered
cost headwinds of circa £150m, including increases in regulatory and colleague costs.
Revenue was down 2.3% year-on-year, reflecting the estimated direct cyber impact, lost trading momentum as the Group focused on recovery, a contracting convenience market and changing consumer behaviour.
Excluding the estimated cyber impact, revenue was broadly flat year-on-year, with Life Services and Food Retail businesses demonstrating growth, offsetting Wholesale decline as Co-op continues to reset the proposition.
Underlying operating loss of £35m includes estimated direct cyber impact of £86m, as well as an additional circa £150m in cost headwinds. These headwinds include regulatory costs of £47m, made up of National Insurance increases and new Extended Producer Responsibility charges, as well as investments in colleague pay
Debbie White, Chair of Co-op Group, said:
“2025 was a challenging year, but those challenges have helped us reshape Co-op for the future. Despite a cyber attack and tough market conditions, our colleagues have shown incredible resilience, keeping communities served and essential services running.
To get back on track, we have adjusted our commercial strategy and strengthened our partner offer while substantially growing active membership. Now, we’re looking ahead with a strong focus on customers, while continuing to prioritise the people who own our business, targeting ten million active members by 2030.”
