Co-op unveils new strategy to open new convenience shops, lower prices and grow membership

The company, which has operations ranging from grocery stores to funerals, also said it is launching a new round of price cuts for its members as it seeks to accelerate sales growth.

The Co-op has seen its food operation lose market share over the past year, according to analysts at Kantar, as many shoppers have turned to discounter rivals in the face of tighter budgets.

In September, the group also revealed a dip in revenues of around £200m for the half-year to July, compared with the same period a year earlier.

However, yesterday the company said it saw improved momentum last year through growth in its membership programme, increasing by almost 15 per cent to around five million members, who also become part-owners in the co-operative.

It said it now plans to grow this to eight million members by 2030 as part of its fresh growth plan.

In grocery, the Co-op said it is seeking to grow its share of the UK convenience market, with ambitions to buy new potential Co-op shops.

It also aims to more-than-double its number of new franchise stores and open 400 new shops in its Nisa business as part of the strategy.

The retailer said it would invest in lowering 117 further prices on everyday products as part of its latest round of membership prices.

The Co-op said it brings the firm's total investment in member pricing to around £100m.

Shirine Khoury-Haq, chief executive of the Co-op, said: "By placing our member-owners firmly at the heart of our Co-op, we've seen a marked increase in new members joining us and greater engagement from existing members.”