The Co-op, a well-established member-owned food and services group with a history spanning 180 years, is grappling with serious allegations regarding its internal culture. Senior managers have voiced concerns about a “toxic culture” at the executive level, which appears to contradict the organization’s ethical values.
Culture of Fear and Alienation
Recent correspondence sent to Co-op board members highlights feelings of “fear and alienation” among senior staff. These individuals express trepidation about raising concerns regarding the company’s strategic direction in front of top executives, including Chief Executive Shirine Khoury-Haq. This environment has allegedly stifled open communication and led to poor decision-making, deteriorating employee morale, and a significant decline in profits.
Poor Decisions and Their Fallout
Several senior managers have reported that a culture discouraging dissent has resulted in a series of questionable decisions. These decisions have not only impacted morale but have also contributed to an alarming rise in food waste. One senior manager remarked on the absurdity of substituting parsnips for steak to fill empty shelves, illustrating the lack of coherent strategy during a challenging period.
Response to a Crisis
The Co-op’s leadership faced a significant challenge when a cyber-attack disrupted operations for three weeks, resulting in a £206 million loss in sales. While the organization managed to respond quickly to this crisis, critics argue that subsequent actions—such as hastily restocking shelves—have adversely affected sales and exacerbated food waste.
Restructuring Amidst Turmoil
In the wake of the cyber-attack, the Co-op moved forward with major restructuring plans, merging its retail, wholesale, and third-party buying functions into a single unit called Group Commercial and Logistics (GCL). Despite warnings from seasoned staff regarding potential disruptions, the organization proceeded, leading to further complications in supplier relationships and operational clarity.
Declining Performance Metrics
As a result of these strategic missteps, the Co-op has experienced a continuous decline in monthly sales since July 2025. Industry benchmarks indicate that the organization is among the worst performers in the grocery sector, with its market share reaching record lows. While the Co-op maintains a strong financial position with reduced debt, the operational decline cannot be solely attributed to the cyber-attack, according to multiple senior managers.
Exits of Key Personnel
The restructuring has also led to the departure of numerous senior and experienced staff members. Notable exits include Jerome Saint-Marc, Sinead Bell, and Rebecca Oliver-Mooney, all of whom have left within the past six months. This turnover raises questions about the long-term stability and effectiveness of the Co-op’s leadership.
Union Concerns and Collective Action
The shop workers’ union, Usdaw, has echoed the sentiments expressed in the letter to the Co-op board. National officer Jayne Allport stated that union representatives are actively addressing concerns raised by members in various sectors within the organization. She encouraged employees who feel voiceless to join the union for collective representation.
A Call for Cultural Reassessment
Despite the Co-op’s assertions that their culture fosters open dialogue and cooperation, discontent among employees suggests otherwise. Many staff members describe a pervasive sense of corporate gaslighting, where leadership insists that everything is functioning well, despite clear evidence to the contrary. This dissonance has led to a feeling of betrayal among those who joined the Co-op for its ethical business practices.
The Co-op’s Historical Commitment
Founded in 1844 by the Rochdale Society of Equitable Pioneers, the Co-op was built on principles of ethical commerce, aiming to provide quality goods at fair prices to working-class communities. The organization’s code of conduct emphasizes its commitment to conducting business safely and ethically. However, reports from employees indicate that current practices are straying far from these foundational values.
Moving Forward
As the Co-op navigates these challenging times, the urgency for cultural reassessment becomes increasingly apparent. A constructive dialogue that encourages employee input and fosters a supportive environment may be critical for restoring morale and improving operational performance.
In conclusion, the current climate at the Co-op presents significant challenges that must be addressed to realign with its core ethical values. A commitment to transparency, open communication, and collaborative decision-making will be essential for revitalizing the organization and securing its future success.
- Key Takeaways:
- Senior managers express concerns about a toxic culture at the executive level.
- Poor decision-making has led to declining sales and increased food waste.
- Restructuring efforts have resulted in high turnover of experienced staff.
- Union representation is encouraged for those feeling marginalized.
- A cultural reassessment is necessary to align with the Co-op’s founding values.
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