Co-op Group has reached a major milestone in its planned combination with Southern Co-op, completing the transfer of Southern Co-op into a wholly owned subsidiary, Siena Co-operative Limited.
Southern Co-op operates 173 food stores, 83 Starbucks coffeehouses and 77 Welcome franchise stores. Together with Co-op Group’s network of more than 2,300 stores and wholesale operation serving around 8,000 outlets, the proposed deal would significantly strengthen Co-op Group’s position across both physical retail and convenience ecommerce.
The enlarged group would also gain a broader platform for omnichannel growth. Co-op has invested heavily in digital convenience retail in recent years, expanding its own online grocery operation and quick-commerce partnerships with platforms including Uber Direct, Deliveroo and Just Eat. The retailer has made growing its ecommerce and rapid delivery offer a strategic priority as demand for convenience shopping continues to increase, with the stated ambition of accelerating its share of the quick commerce market to more than 30%.
Next stage for the proposed deal
The move follows approval from Southern Co-op members in May and marks a significant step towards bringing the two mutual organisations together. However, the transaction remains subject to review by the Competition and Markets Authority (CMA), with a decision expected later in 2026.
Until then, both organisations will continue to operate separately, with Southern Co-op maintaining its existing brand and day-to-day operations. The retailer said there will be no immediate changes for members, customers, colleagues, suppliers or local communities.
“A historic milestone”
The move is being positioned as a boost for the wider co-operative movement, which promotes member-owned businesses that reinvest value into members and communities rather than prioritising shareholder returns. Kate Allum, interim chief executive of The Co-operative Group, described the transfer as “a historic milestone for both societies and the wider co-operative movement.”
Southern Co-op chief executive Ben Stimson said the deal builds on a longstanding relationship between the two organisations, including collaboration through the Federal Retail Trading Society (FRTS) buying and supply group.
If approved by the CMA, the Co-op Group and Southern Co-op combination would create a larger co-operative business with more than 7.3 million members and an expanded national retail footprint, potentially creating new opportunities to invest in digital services, data-led membership propositions and convenience fulfilment across the UK.
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