Some senior managers at the Co-op have complained of a “toxic culture” at the executive level of the 180-year-old member-owned food and services group that prides itself on its ethical values.
A letter sent to Co-op board members and seen by the BBC claims there is “fear and alienation” among senior staff, with some allegedly feeling unable to raise concerns about the direction of the business in front of the leadership team, including chief executive Shirine Khoury-Haq, who has led the organisation since 2022.
Several senior sources told the BBC they believe a culture that discourages challenge has contributed to poor decision-making, declining morale and senior departures. The concerns come as the retailer faces falling sales and operational disruption following last year’s cyber-attack.
However, lawyers representing the Co-op said the business did not recognise the claims and did “not believe that they represent the views of our broader leadership and colleagues”.
The letter acknowledges that the Co-op responded quickly to a cyber-attack that disrupted trading for three weeks and resulted in £206m in lost sales. However, it claims some recovery decisions, including rapidly restocking empty shelves with alternative products, negatively impacted performance.
Despite the disruption, the Co-op pressed ahead with a major restructuring programme, merging its retail, wholesale and third-party buying functions into a single unit, Group Commercial and Logistics (GCL). The reorganisation was intended to streamline operations across the group, which has an annual turnover of around £9bn.
Some senior managers reportedly warned the changes could create supplier confusion and internal disruption. According to sources cited by the BBC, “tens of colleagues”, including several senior executives, have left the business since the restructure.
Departures in recent months have included managing director Jerome Saint-Marc, chief commercial officer Sinead Bell, propositions director Adele Balmforth, and most recently commercial director Rebecca Oliver-Mooney.
Industry benchmarks show the Co-op has recorded declining monthly sales compared with the previous year since July 2025, with market share at near-record lows relative to competitors.
Senior managers cited by the BBC said they believe the ongoing decline in operating performance can no longer be attributed solely to the impact of the cyber-attack, but to strategic decisions including the GCL consolidation.
The Co-op, however, said it remains in a solid financial position, highlighting reduced debt levels compared with five years ago and cash reserves providing “significant financial headroom”.
Founded in 1844 by the Rochdale Society of Equitable Pioneers, the Co-op has long positioned itself as a values-driven retailer, with a stated commitment to operating “in a safe, honest and ethical way” and creating “an open and supportive working environment”.