Highlights
- CEO Shirine Khoury-Haq to leave on 29 March after four years at the helm.
- Co-op posts £125m underlying loss following last year’s damaging cyber-attack.
- Annual sales fall to £11bn amid market pressures, IT disruption, and supply challenges.
The announcement comes as the retailer reported an underlying loss of £125m, compared with a £45m profit the previous year.
The decline was largely driven by a £107m impact from a cyber-attack that disrupted operations and forced system shutdowns.
Khoury-Haq said her decision to leave was personal and not linked to allegations of a “toxic” workplace culture.
“My decision to leave was very much a personal decision,” she said, adding she wanted to pursue other opportunities.
Financial pressures mount
Sales at the Co-op fell by 2.3 per cent to £11bn in the year to 3 January, as stores faced stock shortages following the cyber-attack, which also reduced sales by £285m. The company said it lost trading momentum while focusing on recovery efforts.
The retailer also cited a “contracting convenience market” and rising household cost pressures as key challenges. A
dditional cost pressures of around £150m were driven by higher national insurance contributions, wages and packaging taxes.
Khoury-Haq’s departure follows recent reports raising concerns about a “toxic” culture within senior management.
A letter reportedly sent by senior staff highlighted issues of “fear and alienation”. However, the Co-op said these views did not reflect the wider organisation.
Khoury-Haq acknowledged some communication gaps during internal restructuring, noting feedback from staff.
She said it had been an “honour” to lead the Co-op and that the business is now positioned to continue its strategy of stabilisation and transformation under new leadership.
