Southern Co-op members have voted in favour of the merger with the Co-op Group.
Voting at a second Special General Meeting saw members approve the merger, with 16, 091 votes cast.
The proposed merger, announced in April, will now see 300,000 Southern Co-op members joining the seven million Co-op Group members as members of an enlarged Co-op Group.
A spokesperson for Southern Co-op said: “Our Members have voted to join forces with Co-op Group. Over 16,091 Members voted – significantly more than the first vote – demonstrating strong engagement from our Members in Southern Co-op’s future.
“This represents an important milestone, giving us a clear mandate to progress our plan to join forces for the benefit of Members, colleagues and communities across the UK, while preserving the heritage and legacy of Southern Co-op and all that it stands for.”
The spokesperson outlined the next steps in the process.
“The next step is to register the transfer with the Financial Conduct Authority (FCA). Once registered, all Southern Co-op assets, liabilities and employees will transfer to a subsidiary of Co-op Group with colleagues transferring under TUPE regulations, meaning existing terms and conditions of employment will be protected. This is currently expected to happen at the end of July 2026.
“Alongside this, the Competition and Markets Authority (CMA) will review the transaction, although this review won’t affect completion of the merger.
“While the CMA process continues, Southern Co-op will operate as a standalone subsidiary within Co-op Group. We do not expect any immediate operational changes. Members will still be able to use their Southern Co-op card and access the same benefits as usual and our stores and funeral homes will continue operating normally.”
A spokesperson for Co-op added: “We’re delighted that Southern Co-op Members have now voted to join forces with The Co-operative Group. We believe this will create a co-operative society with greater scale, resilience and impact for members, customers, colleagues and communities across the UK.
“We anticipate the transfer of engagements will take place in Q3 2026, however the businesses will continue to be run independently until we have regulatory approvals.”
CEO Ben Stimson and Chair Janet Paraskeva had warned members that if the merger does not take place, the future of Southern Co-op was at risk.
In a letter to members in April, they said: “Southern Co-op has made losses for the past three years. Over the last year, trading has become more difficult, and we have relied on ongoing support from our banks and suppliers to continue operating. That support cannot now be increased within the time available. To continue trading without a merger, we would need a significant level of financial support and we have not received any offers of funding at that level.
“If the merger does not go ahead, the most likely outcome is that Southern Co-op will enter insolvency through administration. This would put jobs at risk, lead to the loss of stores and negatively impact our suppliers.”
Southern Co-op had been approached by OurCoop, made up of the former Central, Midcounties and Chelmsford co-operative, suggesting that there was “real potential for our Societies to build on our existing relationship – on membership, on campaigning, on community programmes – in ways that would benefit the members of both our Societies and the communities we serve alongside one another”.
OurCoop CEO Debbie Robinson and Society President Elaine Dean added that they “would warmly welcome continued dialogue between our Societies about the future of the co-operative movement”.
However, Stimson and Paraskeva said there is “no solvent alternative available to us now which we could deliver in the time frame and without exposing the business to a much greater risk”.
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