If you’ve popped into your local Co-op lately and noticed things feeling a little different, there’s a reason for that. Earlier this year, the high street favourite was hit by a problem most of us never expect to see when we’re just trying to grab some milk and a meal deal: a full-on cyber attack.
Back in April, hackers managed to break into the retailer’s systems, leaving shops across the UK struggling. Shelves were left bare, and the disruption didn’t stop there. What made the situation even worse was that data from all 6.5 million members of the Co-op was stolen.
It was one of the most serious attacks to hit a UK supermarket in years, and customers up and down the country felt the impact. Now, the true scale of the damage has finally been revealed, and it makes for jaw-dropping reading.
The Co-op has admitted that the hack has already cost it £206 million in lost revenue for just the first six months of the year. On top of that, profits were hit by £80 million, with £20 million in direct costs and a further £60 million in lost margin.
That’s left the group, which includes food stores, funeral homes and financial services, with a £75 million loss for the first half of 2025. To put it into perspective, this time last year it had made a £3 million profit.
Sales have also slipped by 2.1% to £5.48 billion, with food sales down 1.6% at £3.62 billion. Co-op runs around 2,300 stores nationwide, so those numbers show just how widely the attack was felt.
As for the problems the Co-op already had, the organisation has also had to absorb higher staff wages, increased National Insurance contributions and costs from the new packaging tax. Altogether, it’s a cocktail of challenges that has made this year one of the toughest in recent memory for the retailer.
Despite the chaos, Co-op’s chair Debbie White tried to strike an optimistic note: “The first half of 2025 brought significant challenges, most notably from a malicious cyber attack. Our balance sheet strength and the magnificent response of our 53,000 colleagues enabled us to maintain vital services for our members and their communities.
“We must now build our Co-op back better and stronger to meet the challenges and opportunities that lie ahead.”
Chief executive Shirine Khoury-Haq 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.”
In a bold move, the group has announced it still plans to open 30 new stores in the second half of the year. Even if this gamble pays off, the cyber attack has left a staggering hole in the Co-op’s finances.
Featured Image Credit: Roger Utting Photography/Getty ImagesTopics: UK Food
Ben Williams