Co-op has pledged to inject more than £1 billion into the UK economy over the next 12 months, launching a wide-ranging ‘Back Britain’ programme in the wake of this week’s Autumn Budget.
The retailer said its plan is designed to support households still struggling with the cost-of-living crisis, while strengthening local high streets, British suppliers and community infrastructure.
The UK’s largest consumer co-operative – owned by around seven million members – said it will channel investment into lower prices, bolstered British sourcing commitments, store development, and skills and apprenticeship programmes, arguing that responsible businesses must play an active role in the country’s economic recovery.
Budget clarity ‘welcome news’ for local retailers
Group CEO Shirine Khoury-Haq described the government’s new business rates decision as “the clarity and certainty that small shops and local communities have been waiting for.”
“The decision is a welcome and important step that will help protect jobs, strengthen local economies and support high streets across the country,” she said.
“Co-op is stepping up alongside this commitment, facilitating over £1 billion of spend into the UK economy over the next year. As a business owned by 7 million members, not shareholders, we measure success in the value we create for people and places.”
Over 1,000 price cuts as cost-of-living concerns rise
At the centre of the plan is a major price investment, with Co-op preparing its largest-ever number of price reductions, covering more than 1,000 products across its 2,300 stores and online channels from early next year. The reductions will focus heavily on categories linked to UK farming, produce, dairy and protein – while maintaining its claim of offering the cheapest British meal deal on the market.
Importantly, the lower prices will not be exclusive to members. Co-op said the move is aimed at supporting the 15 million weekly transactions in its stores and helping families manage weekly budgets.
The decision follows new internal research showing cost-of-living pressures remain acute: 58 per cent of participating members now rank the issue among their top three concerns, up from 51 per cent in late 2024. The figure rises to 72 per cent among 18–34-year-olds.
Deepened commitments to British farmers and suppliers
Backing British business remains a cornerstone of the £1bn plan. Co-op confirmed it will continue to spend more than £700 million a year with British farmers and agriculture suppliers, maintaining:
- 100% British fresh and frozen own-brand meat
- 100% British eggs and milk
- 100% British potatoes and carrots year-round
Co-op also renewed its call for the UK government to ensure sufficient long-term support for domestic farmers facing climate, cost and supply chain challenges.
Beyond food, the Group will spend over £580 million with UK-based GNFR (Goods Not for Resale) suppliers and expects more than £6.4 million in energy procurement through Co-op Power to help UK organisations cut costs and access lower-carbon energy.
The society is also reviewing its pension investment strategy to direct more of its defined-contribution fund towards UK markets, aligning with recent government encouragement for pension funds to support domestic growth.
£38m annual crime prevention spend as store estate grows
A significant part of Co-op’s plan focuses on high streets and community safety – a major concern for convenience retailers nationwide. The business will continue spending £38 million annually on measures to prevent retail crime and protect colleagues, alongside expanding police partnerships that have already helped cut incidents in hotspot areas.
The retailer will also continue investing in its estate, with around 100 stores set for upgrades, relocations, refits or new openings in the next 12 months. This follows confirmation that 50 new and refurbished stores will be operational before Christmas. Its 2026 development pipeline includes new sustainability showcase stores, which serve as testbeds for eco-technologies and store-format innovation.
Community and youth investment continues
Over the past five years, Co-op has distributed £63 million via its Local Community Fund to more than 22,500 grassroots causes, and this will continue alongside its £7 million partnership with Barnardo’s aimed at supporting one million young people.
Its charity, the Co-op Foundation, will invest an additional £2 million in grassroots organisations to elevate youth voices and support long-term social change.
On skills and opportunity, Co-op is targeting 7,000 matched apprenticeships by 2030 through its Levy Share service, which has already transferred £40 million of unspent apprenticeship levy from large employers to small businesses and community groups. A further £6 million is expected to be shared over the next year.
The society will also continue to provide £1 million annually to its 38 Co-op Academies, supporting Pupil Premium students and offering direct financial support for families needing essentials.