The Co-operative Verdict Company Briefing
Initially formed in 2000, The Co-operative Group has grown as a result of several acquisitions and mergers. In July 2008 it agreed a £1.57bn deal to acquire Somerfield, which was completed in March 2009. The Co-operative has since been working through a transition programme to convert 747 of the 880 Somerfield stores to The Co-operative fascia, while the remaining 133 stores were disposed of.
- Benchmark your performance in food & grocery with detailed key performance indicators across sales and space data for The Co-op
- Plan your expansion strategy by understanding how and where The Co-op has increased its store portfolio, and the impact this has had on densities
- Discover how The Co-op has grown its visitor share with detailed consumer data, and assess the impact this has had on market share and sector sales
Peter Marks announced his plans to leave the business in May 2013. Mr Marks has been widely regarded as a catalyst for the growth seen at The Co-operative in recent years, spearheading the integration of Co-operative Wholesale Society and Co-operative Retail Services, and the merger with United Co-operatives which created The Co-operative Group.
The acquisition of Somerfield made The Co-op the fifth largest grocer in the UK behind Morrisons. However the gap between the two will widen from 4.0 percentage points in 2009, to 5.4 in 2013. At the same time upmarket grocer Waitrose is gaining fast on The Co-op, with its gap of 2.5 percentage points in 2009 set to fall to just 0.8 in 2013.
The Co-op acquired David Sands, a Scottish convenience chain with 28 stores, in November 2011. As of June 2012 three David Sands stores had been rebranded and opened with the Co-op fascia. Scotland is a region where the Co-op has previously had little exposure and the acquisition is a strong one for the retailer, as it allows it to expand quickly
- How will The Co-op's food & grocery sales grow in 2013, and what impact will this have on market share
- What are The Co-op's plans for expansion over the coming years, and how will this contribute to sales growth
- What does The Co-op need to do in order to claw back the market share it has lost since the Somerfield takeover
Table of contents
Sales move into decline as convenience competition ramps up;
Food sales continue to decline as The Co-op fails to compete;
Falls well below store opening target;
Market share slips away as portfolio shrinks;
If it wants to recover share stolen by rivals it must forget about expansion and address faiIings …
… these include store environment; customer service; product quality and availability; and high prices;
It must become more competitive if shopper numbers are to recover;
Forget about Good with Food: go for Cares about the Community;
It should become a destination store at the heart of the community.
•Must begin to evolve as competitors steal share
•Recent key events
Further acquisitions lead to space growth as CEO departs
•Proposition & customer penetration
HBS visitor share by demographic
Sales slow as convenience competition ramps up
Store opening falls well below target
•Sector performance – food & grocery
Food sales continue to decline as The Co-op fails to compete
Market share slips as portfolio shrinks
Must become more competitive if shopper numbers are to recover
•Verdict company briefing
Market size calculation
Sales density calculation
•Ask the analyst
•Table: The Co-operative Group company information 2012
•Table: The Co-op retail proposition 2012
•Table: The Co-op key operating statistics 2008–13e
•Table: The Co-op trading record 2003–13e
•Table: The Co-op UK store profile 2003–13e
•Table: The Co-op space allocation 2010-12
•Table: The Co-op space allocation 2010-12 continued
•Figure: The Co-op fascia 2012
•Figure: The Co-op Food magazine 2012
•Figure: Visitor share by demographic group 2012
•Figure: The Co-op UK sales and y-o-y change to January 2008–13e
•Figure: The Co-op UK operating profit to January 2007–12
•Figure: The Co-op food & grocery sales for calendar years 2008e–13e
•Figure: The Co-op food & grocery sales per sq ft for calendar years 2008e–13e
•Figure: The Co-op space allocation changes 2010–12
•Figure: The Co-op space allocation percentage point change 2010-12
•Figure: The Co-op share of market held by food & grocery retailers 2008–13e
•Figure: The Co-op share of market for food & grocery products 2008–13e
•Figure: Number of main users at Somerfield and The Co-op 2006–11
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