Central Co-op and Midcounties Discuss Landmark Merger

The UK’s two largest independent retail co-operatives are in advanced discussions about a merger that would deliver greater value for members, colleagues, customers and communities, while ensuring the co-operative movement continues to grow.

Image: The Midcounties Co-operative

If approved, The Midcounties Co-operative and Central Co-op would create a new society of more than 500 food stores, 170 funeral homes, 70 travel agencies, and almost 50 nurseries, as well as more than 500 investment properties across the UK, according to a press release.

Together they would comprise more than one million members, 13,000 colleagues, and £1.8bn in annual sales across the UK, establishing a resilient and scaled society for the future that would remain connected to local communities.

The societies said they have been “in discussion for many months” about how they can benefit their members through even closer ties. Both societies have a long history of co-operation.

Image: Midcounties

In the coming weeks the boards of the two societies plan to ask their members to consider proposals that would formally join the societies together.

The new society would remain rooted in local communities, with sites in counties across England, as well as operating throughout the UK via the digital reach of its funeral, travel, energy and telecommunications businesses.

Championing Co-operative Growth

At a time when people are increasingly looking to businesses to help tackle societal challenges and have a purpose beyond profit, the two firms said the new society would have a greater ability to shape policy and would be committed to helping other co-ops to thrive and grow, in line with the government’s pledge to double the size of the co-operative sector.

The proposed merger would also have the potential to deliver significant economies of scale and operational efficiencies that would reduce costs and create a platform for sustainable growth.

The two firms said the new society would maintain and celebrate the unique regional identities of its trading areas, following the example set by the recent successful transfer of Chelmsford Star Co-operative into Central Co-op.

Image: Central Co-op

Elaine Dean, President of Central Co-op, explained that by working together the two societies could achieve more for members, colleagues and communities. 

“By combining our strengths, we can create a co-operative society that is more influential, more resilient and more ambitious, while helping ensure that the co-operative movement continues to grow and inspire,” Dean said. 

Irene Kirkman, President of Midcounties Co-operative, added that the two firms have a rich heritage and shared values. 

“Together we can lead the way in showing how co-operation can create a lasting and positive impact in the UK,” Kirkman pointed out. 

“One of the many values we share is the commitment to remaining independent and fully owned by our members and so it will be for our members to determine our future.”

Members will be consulted throughout the process and will be able to vote on any proposals.