The Co-op has announced its ambition to make it the largest convenience retailer in the UK with growth plans built on a large-scale network of franchise stores.
The group said it aims to more than treble the number of franchise stores within three years, from 43 to over 130. It also plans to grow its ecommerce business by building on its successful tie-ups with Uber Eats, Deliveroo and Amazon to support its own direct to consumer online business shop.coop.co.uk.
The announcement was part of the retailer’s new-look food strategy, which also included a commitment to offer greater value, led by a major £37m investment to slash the price of over a hundred products.
Lowering prices, in response to the cost-of-living crisis, is the first-phase of Co-op’s food strategy. More than 120 Co-op own-brand products have been reduced in price by as much as 36% and savings average over 13%. A weekly top up shop could now save shoppers over £100 across the year. Everyday favourites, from pizza, pasta and burgers to fruit and vegetables, have been lowered in price and ‘locked in’ into 2023 as Co-op responds to help its members, customers and communities who face rising household bills.
Shirine Khoury-Haq, Co-op CEO, said: “Convenience is one of the fastest growing channels within the grocery market and our refreshed strategy aims to capitalise on the experience we’ve gained in the market over the last decade. We’ve grown our own business to operate more than 2,500 Co-op operated stores, have built a nationwide franchise platform and serve almost 5,000 independent convenience stores through our wholesale-arm.
“As we face into a cost-of-living crisis we are determined to make life fairer for our members, customers and communities in these extraordinary times and lowering prices for shoppers is the first-step in our strategy.”
Matt Hood, MD Co-op Food, said: “We are one of the most frequently visited food retailers, with over 16 million shoppers each week. This inflation-beating multi-million pound investment will reduce prices on everyday items at a time when consumers face even higher household bills and kickstarts our new-look food strategy to extend our scale and reach through capital light opportunities, focusing on launching new stores with great franchise partners.”
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