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Co-op has reported a £75m underlying pre-tax loss for the six months to 5 July 2025, after a cyber attack disrupted its trading . The result compares with a £3m profit in the same period last year.
The attack also contributed to a 2.1% decline in revenues to £5.48bn, with the group estimating a £206m impact on sales.
Co-op said the first half of the year was also affected by higher operating costs, including increases to the Real Living Wage and National Insurance, as well as new Extended Producer Responsibility charges.
Additionally, it stated that cost pressures had been most acute in the opening six months but noted that longer-term savings measures were being put in place.
The business worked with the National Crime Agency, the National Cyber Security Centre and regulators during the cyber incident, and issued a £10 discount on a £40 shop to members in recognition of the disruption.
Looking ahead, Co-op warned of continued cost pressures, global volatility and strong competition. Despite this, it said the level of cyber-related disruption was reducing in the second half of the year.
The group outlined plans to open 30 new food stores and franchise formats in the coming months, alongside operational changes including leadership moves and the creation of a new commercial and logistics division.
Co-op invested £131m in the first half of the year and said that further spending was planned across all business areas. The retailer also intends to expand its Life Services division and pursue new business partnerships, while refining its convenience food offer.
New ranges include ready-to-cook meals and health products through a partnership with Holland and Barrett, as well as the rollout of smaller ‘On The Go’ outlets offering deli and hot food options.
Shirine Khoury-Haq, CEO of Co-op, said: “Over the past three years, we’ve built a stronger and more resilient Co-op – one that’s better able to navigate the headwinds that all businesses are facing.
“When we experienced a significant cyber attack, that financial strength allowed us to respond as a member-owned organisation. I’m very proud of how we reacted: we kept trading, prioritised colleagues and vulnerable communities, and launched a partnership with The Hacking Games to tackle youth disenfranchisement – the root of many cyber threats.”
She added: “The cyber attack highlighted many of our strengths. But more importantly, it also highlighted areas we need to focus on – particularly in our Food business. We’ve already started on this journey, refining our member and customer proposition, making structural changes to our business, and setting our Co-op up for long-term success.”
