14 hours ago
Major supermarket chain at risk of closing 34 stores after ‘struggling financially' in major blow to shoppers
They claimed their problems had been 'exacerbated' by increases in National Insurance contributions and the living wage
SHOPS FOR THE CHOP Major supermarket chain at risk of closing 34 stores after 'struggling financially' in major blow to shoppers
Click to share on X/Twitter (Opens in new window)
Click to share on Facebook (Opens in new window)
A POPULAR supermarket chain could be shuttering 34 stores after "struggling financially".
Shoppers were devastated to hear a significant number of Co-op branches are at risk of closing.
Sign up for Scottish Sun
newsletter
Sign up
1
More than 34 Co-op stores could be at risk of closing down
Credit: Getty
There are also nine Co-op funeral homes that could be forced to pull the shutters down.
The string of closures would hit Essex highstreets, if a merger is not approved imminently.
A spokesperson from Chelmsford Star Co-op confirmed the news, as reported by Essex Live.
Locations at risk would include stores in Braintree, Chelmsford, Basildon, Thurrock and Southend among other locations, as well as two travel agencies.
The society also operates branches in George Yard Shopping Centre in Braintree and Moulsham Street in Chelmsford.
Chelmsford Star Co-op said it is "struggling financially" and needs to merge with the larger Central Co-op society.
They claimed their issues have been "exacerbated" by increases in National Insurance contributions and the living wage.
It comes as the two Quadrant stores are set to shutter in October later this year, with bosses blaming "long-term and increasing financial loss".
Neither site has fetched a profit since 2008.
Plans or a merger should be decided at meetings on July 16 and August 5.
However, one member of Chelmsford Star Co-op, feared a merger would still see smaller store closures in villages and housing estates.
They said: "I believe that there are other options, including the disposal of department stores, the sale of the quadrant department stores building in Chelmsford and the use of that to reinvest in the business."
Chelmsford Star Co-op said there are no confirmed plans in place.
A spokesman said: "As with any business integration, there will be a period of transition where the combined Society will review how best to organise itself to meet the needs of its members and communities.
"While no decisions have been made at this early stage, we can confirm there are no planned closures of Chelmsford Star food stores, funeral homes or travel agencies as part of the proposed transfer.
"Some support functions may evolve over time to ensure the organisation is fit for purpose and sustainable long-term, but this would be done with care, transparency and engagement with colleagues, members and unions. Importantly, the focus of both Societies is to safeguard as many roles and services as possible."
Meanwhile Chelmsford Star execs dubbed a potential merger an "incredibly exciting moment".
Chief executives of Chelmsford Star and Central Co-ops, Barry Wood and Debbie Robinson, said: "This is an incredibly exciting moment for co-operation. During the UN International Year of Co-operatives, we have a shared vision to be a leading force in the co-operative movement, realising the transformative impact that co-operatives have on economies, communities and individuals.
"In an increasingly competitive marketplace, we believe that by harnessing our shared values, we will build a stronger and more secure society.
"We welcome the proposed transfer and invite members to support this important moment which will deliver a future that continues to put members, colleagues and communities at the heart of everything we do.'
Tony Price and Elaine Dean, presidents of Chelmsford Star and Central Co-op, added: 'Central Co-op and Chelmsford Star Co-operative are committed to putting the interests of our members first and supporting the communities where we trade.
"The transfer will ensure that all members continue to have an important voice as part of a stronger, more secure Society - ready to serve them for many more years to come.
"Both Boards are supportive of this transfer of engagements and the exciting opportunities that it presents.'
OTHER CO-OP NEWS
This comes as Co-op is rolling out a major change to stores across the country.
The supermarket giant is replacing paper product tags with electronic labels throughout its whole estate over the coming months.
The retailer has already made the change in 340 branches but will roll out the tags more widely.
The chain said 1,500 stores will have the labels by the end of the year and will be rolled out across all its nearly 2,400 by the end of 2026.
We have asked Co-op if all labels will be replaced with electronic ones in stores and will update this story when we've heard back.
The electronic labels are designed and created by VusionGroup, which also works with Asda.
Steven Logue, Co-op's head of operations, said: 'With convenience at the heart of everything we do Co-op is committed to continually exploring innovative technology that can improve how we operate."
Co-op said the new electronic labels will show allergen and nutritional information and products' country of origin, as well as deals and savings.
And, Co-op was one of a number of retailers hit by a cyber attack recently which saw supermarket stock and customer data affected.
However, by May 14, the supermarket chain confirmed it was in a "recovery phase" and ready to turn online orders back on.
Customers had been complaining of shortages of fresh produce, ready meals, yoghurts and confectionery since the incident began at the end of April.
The attack also pushed contactless card payments offline in nearly one in 10 stores, forcing customers to pay with cash or enter their PINs at the till.
The retailer also confirmed customers' private details were stolen during the attack after its IT systems were compromised.
Some customers' names, contact information and dates of birth were exposed, however passwords, credit card details and transaction information were not.
