Co-op is in a strong growth phase, with ambitious plans to expand its company-owned estate. Alongside corporate expansion, the retailer is making significant investments in growing its franchise network, presenting valuable opportunities for suppliers and retail partners alike.
Through its franchise model, Co-op has established a diverse range of partnerships to drive growth across various location types, including petrol forecourts, university campuses, hospitals, Ministry of Defence (MoD) bases, and traditional convenience stores. This model allows Co-op to enter markets that may not be accessible through conventional corporate lease agreements, such as NHS sites and university facilities.
With a robust nationwide support system, Co-op is actively seeking retail partners across the UK. The company aims to double sales from its franchise stores from £100m to £200m within the next year, with much of this growth driven by new franchise openings. In 2025, Co-op plans to launch 75 new stores, 50 of which will be franchise-operated.
Co-op franchise operates as a full-service, closed-loop, “hard franchise model”. For customers, franchise stores are indistinguishable from Co-op’s corporate outlets, benefiting from the retailer’s cutting-edge technology, operational processes, and full brand experience. Franchisees receive comprehensive training and ongoing support to ensure seamless operations.
The success of this model is exemplified by a franchisee operating seven Co-op stores who had no prior experience in convenience retail before joining the network. After five years in operation, the franchise programme has matured into a proven and scalable model.
As the business evolves, Co-op has intensified its focus on establishing large-scale partnerships. Collaborations with some of the top 5 leading forecourt operators, such as SGN and EGOTM, have been pivotal. Additionally, the partnership with Compass Group has facilitated the launch of hospital-based franchise stores, including a recent opening at Royal Bournemouth Hospital. The franchise model has also been successfully introduced to the MoD sector with a store at HMS Collingwood.
Universities represent a significant growth opportunity, with eight campus stores already operating across six university locations. Looking ahead, Co-op anticipates substantial expansion in the university sector throughout 2025 and beyond, capitalising on the opportunity to engage with younger demographics and future Co-op members.
While traditional convenience store expansion remains a priority, Co-op maintains a selective approach, ensuring that each new location aligns with its strategic vision and is operated by the right franchise partner. This disciplined expansion strategy underscores Co-op’s commitment to sustainable growth and delivering value to its suppliers, franchisees, Members and customers alike.
Franchise operators are highly invested in the success of their stores, often driving stronger performance compared to company-owned units. Their commitment to the brand fosters strong customer loyalty and membership recruitment.
In a competitive market, where prime retail locations are increasingly scarce, Co-op’s franchise model provides a capital-efficient way to secure desirable sites ahead of competitors.
In addition to franchise stores, Co-op also operate an expanding vending business delivered in partnership with Brodericks. Termed “retail on demand”, it supports further growth into new markets. Currently made up of over 500 Co-op branded vending machines, Co-op Ever Ground coffee machines and Micro-markets across university, NHS and business locations, further cementing Co-op’s ability to provide a complete solution in these environments.
While franchise stores operate similarly to corporate locations, along with retail on demand, they also present unique opportunities for suppliers. Key franchise markets, such as universities, petrol stations, and NHS sites, have particularly high food-to-go sales. Notably, eight of Co-op’s top 15 food-to-go stores are located in university and NHS franchise sites.
University stores offer an unparalleled opportunity to engage with young consumers. Each year, 25-30% of the student population is refreshed with new individuals, creating a continuously evolving audience eager to explore new brands and experiences. Health and wellness trends coexist with indulgence and convenience, offering suppliers a prime platform for innovation and brand growth.
As Co-op accelerates its franchise expansion, suppliers stand to benefit from increased market access, new consumer engagement opportunities, and high-performing retail environments. By aligning with Co-op’s growth strategy, suppliers can tap into a thriving ecosystem that blends innovation, convenience, and strategic partnerships for long-term success.
Jerome Saint-Marc, Managing Director B2B and Growth, said: “Franchising presents an exciting opportunity for Co-op and our suppliers alike. By expanding through trusted retail partners, we’re extending our brand reach, increasing product availability, and driving incremental growth in new and existing markets.
“With universities, healthcare, forecourts and multi-site operators leading the charge, our franchise stores offer a high-performing, capital-light model that benefits everyone – especially our supplier partners. We look forward to sharing more at the Co-op Trade Briefing in September on how this expansion will create new opportunities for collaboration and growth.”
Join the Co-op leadership team at the Co-op Trade Briefing from IGD on 18th September in Manchester to hear their plans to scale business-to-business operations at pace, with a focus on how suppliers can play an enhanced role within these ambitious growth plans…book your place
