The Co-op is poised to do battle with the big four after getting the green light from competition authorities for its takeover of Somerfield.
Chief executive Peter Marks believes the move heralds the return of The Co-op as a force to be reckoned with in the retail sector. He told delegates at this week’s English Farming & Food Partnerships annual conference: “For too long now we have watched our competitors take away our market share. The sleeping giant of the high street has now woken up, got its act together and means business.”
Highlighting how the commercial and ethical strategies of The Co-op sit side by side will be crucial in the current environment, and the events of the last few weeks have given the retailer a “massive opportunity”, said Marks. “Customers are weary of corporate greed, and there is no better time for an ethical stance to come to the fore. Ethics has been at the heart of what we do for over a century and a half.”
The Somerfield takeover is the first time a mutual business has bought out a venture capitalist, said Marks, and it will propel The Co-op back into “the premier league of retailing”. Its mission is to become the UK’s favourite community retailer.
“The acquisition of Somerfield means we will achieve our three-year development plan, which we devised last autumn, in one massive step,” said Marks. “The big four will become the big five, and we will cement our leadership in the convenience store and small supermarket sector.”
The Co-op has built its brand identity on being trustworthy, rewarding its key stakeholders and acting ethically, said Marks, and that will continue as the acquisition goes ahead. “Our business diversity provides us with a powerful platform. Food provenance is up the agenda and we are the UK’s largest farmer, a claim not even Tesco can match. We have a great story to tell.”
The retailer has also pledged to stock more British food in response to consumer demand. “Ethical trading here and abroad is a big issue for our members,” he said. “But it is just as important that growers in the UK are dealt with ethically as it is for growers abroad to be paid a fair price. There is tension between the ethical stance and providing decent prices, so we do have to strike a balance.”
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