Co-op Group is planning to grow its franchise estate by more than 50% to 100 stores in 2026, through partnerships with forecourt retailers, universities and hospitals.
The convenience retailer said franchise stores enabled it to “bring the benefits of membership to new and diverse communities”, with the next site to open at a university campus in Birmingham.
Its new franchise ambitions come as Co-op revealed it would be opening 24 more stores by the end of June, spanning new stores, refurbishments and franchises.
The move will take the total number of stores Co-op is launching in the first half of the year to more than 40, having opened 18 in Q1.
Areas where the new stores will be located include Scotland, Cumbria, Gloucestershire, Kent, London, the Midlands, Nottinghamshire and Yorkshire.
Co-op said it was committed to being a destination and community hub locally, offering a range of services including coffee, parcel collection and quick commerce.
“We’re investing to create local stores which are more than just a shop, they are a convenient hub contributing to local life and meeting the needs of communities,” said Co-op operations director Kate McCrae.
“Whether it’s quality food for an evening at home, food and drink on the go, a top-up shop, or our wide range of added services – we’re here to serve and support communities, conveniently.
“Local shops are an anchor at the heart of local communities, and we’re moving through 2026 with a strong focus on our members, customers and communities, and a programme designed to enhance Co-op’s presence in high streets and communities across the UK.”
Its growth targets come as the boards of Co-op Group and Southern Co-op recently proposed to join forces in a landmark merger, which would create an organisation with sales of circa £11.5bn, almost 2,500 stores and over 800 funeral homes.
Members of Southern Co-op overwhelmingly backed the proposed merger with the Co-op Group during a vote at the first special general meeting held last week, which saw 97.1% of members backing the plans.
While the merger now looks certain to go through, members must vote again at a second SGM on 21 May to confirm the transfer. The outcome of the vote is due to be announced on 22 May.
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