Members of Southern Co-op have overwhelmingly backed proposals to merge with the Co-op Group, with more than 97 per cent voting in favour of the plan at a Special General Meeting held on 6 May.
Southern Co-op said 97.07 per cent of members supported the special resolution to transfer engagements of the society to a subsidiary of the Co-op Group. A total of 13,361 votes were cast.
The vote marks the first formal step towards combining the two co-operatives to create what the businesses described as a larger and more resilient society serving members, customers, colleagues and communities across the UK.
Southern Co-op members will now be asked to vote on a second resolution at another Special General Meeting on 21 May, as required under legislation governing the transfer process.
The proposed merger, first announced in April, would see Southern Co-op’s 300,000 members join the Co-op Group’s existing membership base of around seven million people.
Southern Co-op operates more than 300 food stores, funeral branches and Starbucks outlets across the south of England, while the Co-op Group runs more than 2,300 food stores, 800 funeral homes, a wholesale business supplying around 8,000 outlets, as well as legal and insurance operations.
Debbie White, chair of the Co-op Group, previously said the combined business would create “new and strengthened opportunities” for members, customers, colleagues and suppliers.
Meanwhile, Ben Stimson, CEO of Southern Co-op, said the two organisations shared values around democratic membership, ethical sourcing and community support, adding that the merger would help “secure the co-operative future of Southern Co-op as part of a stronger combined Co-op Group”.
The regional retailer, which has suffered losses for the past three years and expects operating losses to top £20 million in the coming financial year, last month warned that it is facing potential collapse into administration unless a merger with the Co-op Group proceeds.
The two organisations already work together through the Federal Retail Trading Society buying and supply group.
Subject to member and regulatory approval, the transfer is expected to complete in the third quarter of 2026. Both businesses said they would continue operating independently for a period following completion while Competition and Markets Authority approval is sought.
Under the proposals, members of each society would continue receiving their existing member benefits during the transition period.