Retailer Co-op has slumped to a £126m loss as it reels from the cyber attack which cost the firm nearly £300m last year, as its chief executive quit.
The grocery chain is preparing to slash costs in the coming year, as it plans to cut £200m of spending in 2026.
Co-op’s cyber attack in April last year saw all of its 6.5m members have their data stolen and – among other retail cyber incidents last year – prompted the government to pledge a £210m package to curb future attacks.
The retailer made a pre-tax loss of £126m in the year to January 2026, down from its £45m profit the year prior, and said £107m of this loss in profitability was directly due to the cyber attack.
The incident caused a further £86m cost to margins and £21m of incremental, non-recurring costs.
Revenue fell by 2.3 per cent year on year as the retailer lost “momentum” due to the cyber attack, the firm said.
Debbie White, Co-op’s chair, said: “2025 was a challenging year, but those challenges have helped us reshape Co-op for the future. Despite a cyber attack and tough market conditions, our colleagues have shown incredible resilience, keeping communities served and essential services running.
“To get back on track, we have adjusted our commercial strategy and strengthened our partner offer while substantially growing active membership.”
Co-op to shed £200m in costs
Chief executive Shirine Khoury has announced she will leave the company after nearly seven years at the helm, to be replaced by board member Kate Allum as interim.
Khoury said she is stepping away to allow the retailer to move on from the incident: “Following last year’s cyber attack, the organisation is now ready to deliver on an ambitious strategy of stabilisation and transformation.
“This extends beyond the timeframe I had planned for my CEO tenure, and now is the right moment to hand over to leadership that can commit to seeing the strategy through.”
Allum will be tasked with overseeing a swingeing cost-cutting regime, as the retailer pledges to cut £200m of annual operating costs by the end of the year.
Co-op piled £318m of capital investment into stores and technology in the last year, as it looks to turn the page from the cyber attack.
Revenue at Co-op’s retail arm fell by two per cent to £7bn, though the firm said it achieved one per cent real-term growth if the impact of the cyber attack is excluded.
The firm’s Life Services arm – which includes its funeral business – saw revenue growth of four per cent to £418m, but this would have been as high as seven per cent if not for the attack, the company said.
Co-op reasserted its commitment to British farming, as it continues to source 100 per cent of own-brand meat from British farmers, having spent £700m on its UK agricultural suppliers in 2025.
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