Co-op commercial restructure in chaos as Bell and Balmforth exit

Sinead Bell and Adele Balmforth – two of the supposed architects of the Co-op’s commercial restructure – have left the business, The Grocer has learned.

Chief commercial officer Sinead Bell was appointed last month to lead the Co-op’s newly established independent buying group for all food and goods for resale. One of three business units in the new group commercial and logistics division, it involves a merger of Co-op’s buying teams across retail, wholesale, societies and franchise.

Bell left the Co-op last Monday along with propositions director Adele Balmforth, who was also set to play a crucial role in the restructure. With overall responsibility for own label, technical, merchandising and planograms, Balmforth was supposed to help grow own-label sales in the wholesale channel.

The senior departures come amid widespread concern and confusion over the ongoing collective consultations with commercial colleagues, which Bell had been leading.

Under the restructure the Co-op suggested 27 (roughly 10%) of the commercial roles would be eliminated. It insisted the move would be “cost neutral” as while category director roles were reduced, new roles and opportunities were increased through the creation of lower-level buying roles, to enable a more targeted and specialised approach within the team.

However, The Grocer has learned that new contracts for over 100 colleagues have undergone as many as three changes due to alterations and errors. Colleagues have also been told that further changes may be possible, with key responsibilities not yet agreed as the most appropriate structure has not been thrashed out.

An inside source said: “It’s just been chaotic. Everyone has a lot of questions and no one seems to know the answers. I can understand the need to change the shape of the buying role and find better synergies in terms of wholesale customers, but what others do is run them as separate businesses. That needs to be recognised. For a start we still have two distribution networks, and operate a push model, while the pull model of wholesale is completely different, it requires different agreements. Suppliers won’t agree terms that cannot guarantee activation. It will not work.”

Suppliers questioning how restructure will work

Suppliers are also questioning how the new strategy will work. At the Co-op’s IGD trade briefing last month, suppliers expressed concern over the lack of distinction between activation plans for Co-op stores and independent customers (see box below).

But Co-op CEO Shirine Khoury-Haq said the restructure would take time.

“We are focused on designing our new structure to best achieve our future growth ambitions. The newly formed group commercial and logistics division sets Co-op up for continued success in the future, across all our channels, provides the teams with greater focus and helps deliver on our strategic vision to create more value for our member-owners every day.”

It’s understood that a comprehensive suppliers’ communications and engagement programme is to be delivered in support of the new division.

Khoury-Haq added: “As part of this, our colleagues and our suppliers are the priority, as we ensure they understand the vision and the exciting journey ahead for us all. I appreciate reorganisation and change can raise questions for those involved and we have encouraged and welcomed the two-way engagement we are having with our colleagues.

“I am so proud of how our teams are adapting and moving forward with the new approach, which I know will deliver success for our colleagues, suppliers and partners.”

John Dickson, director of commercial strategy and change, has assumed responsibility for continuing the restructure work in the wake of Bell’s departure, reporting in to Hood, alongside commercial directors Tom Bradley, Stephanie Blane and Rebecca Oliver Mooney, as well as Derek Furnival (logistics director), Imran Rasul (chief procurement officer) and Martin Rogers (partnerships director).

A new broader role of food trading director has also been established, which Nicole Tallant is undertaking on an interim basis. She joins the food leadership team alongside Kate McCrae (operations director, stores), Chris Conway (Qcomm director), Nick Cornwell (head of supply) and Martin Rogers (chief operating officer and partnerships director). This team will report to Shirine Khoury-Haq, who is overseeing Co-op Food while recruitment for a new managing director continues.