Co-op to open or refurbish dozens of stores amid cyber attack recovery
The Co-op has said it is pushing forward with a number of new stores and major refurbishments as it bounces back from a damaging cyber attack.
The retailer said 50 stores will be opened or re-opened by Christmas as it urged the Government to reform business rates ahead of the autumn Budget.
It said reforms will be “vital” to encourage further high street investment as it continues with its own expansion ambitions.
The latest slew of openings will take the Co-op’s store openings and refurbishments to more than 200 sites for the latest financial year.
It added that the programme will have seen the business invest more than £200 million across the store estate.
The Co-op will open 14 new stores, which include it becoming the first permanent retailer at the new Brent Cross Town development in London, five new micro-format ‘on the go’ stores and a new franchise store at Lancaster University.
The remainder of the 50 stores will consist of sites which have been closed for a lengthy period to undergo an extensive refurbishment and will re-open with a new look and updated product range.
Growth efforts come as the group, which has around 6.9 million member-owners, continues to recover from a major cyber attack.
It said in September that the hack, which took place in April, will knock its annual earnings by around £120 million.
Meanwhile, it said the cyber attack, which left it with bare shelves and saw data stolen for all its members, impacted on sales by about £206 million.
The group said the hackers impersonated workers to trick employees into giving them access to their accounts.
They created a copy of one of the firm’s files but were unable to attack its platforms further and install ransomware.
On Monday, the group, which runs more than 2,300 food stores, made renewed calls for property tax reform and increased certainty from the Government ahead of the autumn Budget.
Shirine Khoury-Haq, Co-op Group chief executive, said: “We’re investing in stores and communities right across the UK because we believe in the future of the high street.
“But sustained growth needs certainty. Business rates reform is vital if retailers – especially the 99% who run small stores – are to plan with confidence, protect jobs and keep local economies thriving.
“Co-op is showing what’s possible when businesses commit to communities.
“The Government now has an opportunity in the autumn Budget to do its part by delivering the reform that’s long been promised – giving every retailer, from small to large, the stability to invest and grow.”
By Henry Saker-Clark, PA Deputy Business Editor