Co-op has rejected claims of a “toxic” culture at the top, saying colleague engagement remains high and decision-making reflects a wide range of views across the business.
The complaints were raised in a letter to board members, seen by the BBC, describing “fear and alienation” among senior staff, who said they felt unable to speak up in front of the leadership team, including CEO Shirine Khoury-Haq.
The letter claims this culture has contributed to falling morale, a series of senior departures, and operational errors. Staff told the BBC that advice was often ignored or met with hostility, leaving some feeling intimidated.
The concerns follow the cyberattack on Co-op last year. The letter highlighted the retailer’s response to the disruption, arguing shelves were restocked with whatever products were available rather than appropriate replacements, which it claims contributed to lost sales and rising food waste.
It also criticised the creation of Co-op’s new group commercial and logistics division last year, which merged Co-op’s buying teams across retail, wholesale, societies and franchise, warning that it would disrupt the business and confuse suppliers. The letter claimed that it had contributed to a decline in operating performance.
The restructure led to further controversy after several senior executives left the business, including chief commercial officer Sinead Bell and propositions director Adele Balmforth. Commercial director Rebecca Oliver-Mooney also announced her departure last week to join functional soft drinks brand Hip Pop as strategy and insights director.
The Co-op said it “did not recognise the critical comments referencing culture, leader behaviours and decision-making” and “did not believe that they represent the views of our broader leadership and colleagues”.
“Our culture, as a co-operative, ensured decision-making throughout has listened to views from leaders and colleagues across our food and wider business, whilst simultaneously acknowledging when a wide range of views are expressed, not everybody will always agree with the final decisions and actions taken,” said a Co-op spokeswoman.
The convenience retailer added that it took “informed decisions at pace” to bring back customers it lost during the cyberattack and ensured the business was “set up for future success”.
It said measures including the creation of the group commercial and logistics division were made “in both the short and long-term interests of our Co-op” and were “already driving positive results”.
The spokeswoman added: “Our colleague engagement remains high, and our culture and ethos mean we continue to engage with all our colleagues and leaders to ensure they act constructively and co-operatively for the long-term benefit of the business.”
No comments yet