The Co-op Group is planning to take over Southern Co-op in a deal that would add hundreds of food and funeral shops to the retail giant’s chain.
The societies announced proposals that would need to be approved by members to go ahead.
It involves bringing Southern Co-op’s 300,000 members into the seven million-strong Co-op Group, as well as its roughly 300 food, funeral and Starbucks coffee branches.
Co-op Group will also gain its three crematoria under the deal, enabling it to re-enter the growing market alongside its funeral services.
The firms did not disclose the price of the potential transaction.
Southern Co-op is based in Portsmouth and operates mainly across the south of England, incorporating London, and under the Co-op Food and Welcome brands.
It was founded in Portsmouth as a co-operative in 1873.
Co-operatives refer to businesses that are owned and controlled by their members, who can have a say in how the business is run.
Southern Co-op members will be given a vote on the proposals, which, if approved by members and regulators, are expected to go ahead in the final quarter of 2026.
The merger would happen through a process called “transfer of engagements”, which allows two societies to come together.
Ben Stimson, Southern Co-op’s chief executive, said the deal would secure the future of the business, which has recently grappled with falling profits and higher costs.
He said: “By coming together, we can secure the co-operative future of Southern Co-op as part of a stronger combined Co-op Group, whilst creating an even stronger voice nationally and internationally to advance the co-operative cause.”
Kate Allum, Co-op Group’s interim chief executive, said: “Joining forces across Co-op Group and Southern Co-op will create new opportunities for members to have access to a greater range of benefits across a wider society, with more trading opportunities, and in turn more benefits for them and their communities.”
