Co-op looking to triple number of franchise stores as part of new food strategy

The Co-op is to triple the number of its franchise stores over the next three years as part of a new food strategy outlined by new Group CEO Shirine Khoury-Haq.

The strategy has three main focuses – channels and partnerships, value and range, and loyalty.

In terms of channels, Co-op said it planned to boost scale with a capital-light expansion programme through its e-commerce and franchise operations and key strategic partnerships. There are currently 43 Co-op franchise stores across the UK and Khoury-Haq has set a target of 150 with three years.

On pricing, Co-op is investing £37m to reduce the price of 120 key convenience lines such as orange juice, pizza, wine, fruit and salads. These will be held at the lower prices until the new year. Last month, The Grocer revealed the Co-op had warned suppliers to expect delistings as part of a major range review. Today Khoury-Haq confirmed this was likely to see a 21% reduction in the number of SKUs sold by the society.

Finally, the retailer said it aimed to improve Co-op member offers to drive loyalty and grow shopping baskets and trips.

The Grocer