Central Co-op and Midcounties Co-op are considering a merger.
The societies said they had a long history of co-operation and had been in discussions for many months about how their members could benefit through closer ties.
As a result, the boards of the two societies plan to ask their members in the coming weeks to consider proposals that would formally join them together.
If approved, the combined society would unite over one million members, 13,000 colleagues, more than 500 food stores, 170 funeral homes, 70 travel agencies and almost 50 nurseries, as well as more than 500 investment properties across the UK.
It would also create a society with a turnover of over £1.7bn. For the year ending 25 January 2025, Central Co-op’s turnover was £883.9m, while Midcounties Co-op’s was £840.2m.
The new society would remain rooted in local communities, as well as operating throughout the UK via the digital reach of its funeral, travel, energy and telecommunications businesses, the societies said.
They added it would have a greater ability to shape policy around societal challenges and would be committed to helping other co-ops to “thrive and grow” in line with the government’s pledge to double the size of the co-operative sector.
The merger would also have the potential to deliver significant economies of scale and operational efficiencies that would reduce costs and create a platform for sustainable growth.
“While talks are ongoing, discussions to date have identified significant commercial and operational benefits that could come from merging our two societies,” said Central Co-op CEO Debbie Robinson.
“However, this is ultimately about more than numbers, it’s about people. By uniting our societies, we can increase our ability to deliver value for our members and communities; provide more rewarding careers and greater opportunities for development for our colleagues; and it means that we can combine our respective strengths to create a new society that is built to thrive for the long term.”
Midcounties Co-op CEO Phil Ponsonby said: “We have a unique opportunity to create a society for the future, something that reflects the priorities of our members and addresses the challenges of our time. This potential merger would strengthen our ability to innovate, invest and cross-market a broad family of businesses to create a strong and stable platform for future growth.”
The proposed merger comes as Chelmsford Star Co-op officially transferred into Central Co-op last month. It marked the first consolidation of retail co-op societies in eight years, the last one being Wooldale Co-op’s merger into Central England Co-op, known today as Central Co-op, in 2017.
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