Half-year results published by Co-op today show the society suffered a major hit to its sales and profits from the cyber attack in April, which forced it to shut down parts of its IT system and led to shortages of goods in its stores.
Over the six months to 5th July 2025, the group’s total sales fell 2.1% to £5.48bn, with the hack accounting for £206m in lost revenues. Excluding the impact of the event, Co-op said sales would have risen 1.5%.
Co-op chair Debbie White said the “malicious” attack had caused “significant challenges” for business, with the trading disruption and additional costs leading to a £75m underlying pre-tax loss, compared to a £3m profit in the same period a year earlier. The group highlighted that this was compounded by other significant cost headwinds, including the minimum wage and National Insurance increases, as well as the new EPR packaging charges.
Co-op noted that the full cost of the cyber attack could be much higher, with it also expecting there to be some impact on its business in the second half of the year.
White stated that the group must now rebuild “better and stronger to meet the challenges and opportunities that lie ahead”.
Co-op’s core Food division saw its sales fall 1.6% to £3.62bn. However, excluding the cyber impact, the society said it would have grown 2.9%, with it continuing initiatives to evolve its business. These include the roll-out of its new ‘on-the-go’ concept stores and the expansion of its quick commerce proposition with partners such as Uber Eats, Deliveroo and Just Eat.
The retailer has also launched nearly 200 new own-brand products and plans to open 30 new stores in the second half, with many of these to be franchise outlets.
Co-op Chief Executive Shirine Khoury-Haq said she was proud of how the business had responded to the attack and that it highlighted its many “strengths”.
She added: “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.”
Meanwhile, Nisa retailers were today reassured that their fascia will remain at the heart of the Co-op despite the rebranding of Nisa’s wholesale operation to Co-op Wholesale earlier this year.
In the group’s results, the Co-op said it would “retain the Nisa look for stores that opt for it”, with Co-op Wholesale Managing Director Katie Secretan confirming that the Co-op was committed to the brand. She said: “The Nisa fascia is at the heart of our business – part of our heritage. Our Co-op Wholesale proposition works very well with different fascia offers and that will not be changing.”
NAM Implications:
- A cyber attack can be a wake-up call for a business.
- Albeit Co-op handled this one with decisiveness and speed…
- …limiting its impact as per above.
- And government taxes have not helped…
- That said, analysts will focus on actual rather than ‘might have been’ results.
- Meaning Co-op and supplier-partners need to put this behind them…
- …and support all the good initiatives.
