If approved, the deal would see 300,000 Southern Co-op members absorbed into The Co-op’s considerably larger membership base of seven million.
The resulting business would be a notably larger player in the grocery retail space and would additionally expand The Co-op’s funeral capabilities.
In total, the agreement would see approximately 300 of Southern Co-op’s food, funeral and Starbucks outlets join the wider Co-op portfolio, alongside its three crematoria.
Founded in Portsmouth in 1873, Southern Co-op’s operations are focused across the south of England, including London, trading under the Co-op Food and Welcome brands.
The group has been facing difficulties over the past year, having opted to sell off 22 of its directly operated stores in June last year amid rising operational costs.
“Joining forces across Co-op Group and Southern Co-op will create new opportunities for members to have access to a greater range of benefits across a wider society, with more trading opportunities, and in turn more benefits for them and their communities,” said Kate Allum, interim CEO of The Co-operative Group.
The proposal is subject to approval by Southern Co-op members and mandatory regulatory approvals. If these are received, the move would likely be finalised in Q3 of 2026.
Both businesses are, however, expected to operate as separate units for a short time after this, as final approval is sought from the CMA.
Janet Paraskeva, chair of the Southern Co-op board, added: “This proposal has been carefully considered, and we believe it represents the best path forward for Southern Co-op.
“We are now asking our members to consider the proposal and have their say. This is their decision, and we are committed to providing all the information they need to make an informed choice about the future of their co-operative.”
