British retailer Co-op reports a £126 million pre-tax loss for the year ending January 2026 after a Co-op cyberattack cost nearly £300 million, disrupted operations, and prompted CEO Shirine Khoury to resign.
The company says the April 2025 cyberattack significantly damaged profitability, wiping out gains from the previous year when it posted a £45 million profit. It attributes £107 million of the loss directly to the attack, alongside additional impacts on margins and operations.
Revenue fell by 2.3% year over year, as the retailer says it lost “momentum” following the breach, which compromised data of 6.5 million members. The attack also contributed to £86 million in margin losses and £21 million in one-time costs.
Chair Debbie White says the company is repositioning itself after a difficult year. “2025 was a challenging year, but those challenges have helped us reshape Co-op for the future,” she says. “Our colleagues have shown resilience, keeping communities served and essential services running.”
Cyberattack Drives Losses, Hits Revenue and Margins
The Co-op cyberattack disrupted operations across Co-op’s retail and service divisions, slowing sales and affecting customer confidence. Retail revenue fell about 2% to £7 billion, though the company says it would have achieved 1% real-term growth without the attack’s impact.
Its Life Services division, which includes funeral operations, reports a 4% increase in revenue to £418 million. However, the company says growth could have reached 7% without disruption from the cyber incident.
The attack was part of a broader wave of cyber incidents affecting retailers in the United Kingdom last year. In response, the government pledged a £210 million package aimed at strengthening cybersecurity defenses across industries.
CEO Resigns as Retailer Plans Major Cost Cuts
Khoury announces she will step down after nearly seven years as CEO, saying the company needs leadership aligned with its long-term recovery strategy. Board member Kate Allum will take over as interim chief executive.
“Following last year’s Co-op cyberattack, the organization is now ready to deliver on an ambitious strategy of stabilization and transformation,” Khoury says. “Now is the right moment to hand over leadership that can commit to seeing the strategy through.”
The company plans to cut £200 million in annual operating costs by the end of 2026. Allum will oversee the cost-cutting program as Co-op aims to restore profitability and rebuild operational efficiency.
Co-op Invests in Recovery, Maintains Supplier Commitments
Despite financial pressure, Co-op invests £318 million in stores and technology over the past year, focusing on strengthening infrastructure and preventing future disruptions after the Co-op cyberattack. The company says these investments are critical to long-term resilience.
It also reaffirms its commitment to domestic sourcing, stating that 100% of its own-brand meat continues to come from British farmers. The retailer spends £700 million on U.K. agricultural suppliers in 2025.
White says the company is adjusting its commercial strategy and expanding its membership base to support recovery. “We have strengthened our partner offer while substantially growing active membership,” she says.
Co-op says it is focused on stabilizing operations in 2026 while rebuilding customer trust and improving financial performance after one of the most disruptive events in its history, the Co-op cyberattack.
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