Hundreds of convenience stores could soon change hands as one major supermarket group moves to rescue a struggling retailer.
The deal would see almost 200 mini supermarkets taken over in a major shake-up for the high street.
Members of Southern Co-op have voted decisively in favour of merging with the national Co-op Group, with an overwhelming 97.7 per cent backing the proposal at yesterday’s Special General Meeting.
The ballot saw 13,361 votes cast, representing a strong turnout that demonstrates active participation in the co-operative’s governance.
A Southern Co-op spokesperson confirmed the result: “At the Special General Meeting of Southern Co-operative Limited held on 6th May, Southern Co-op Members voted in favour of the Special Resolution to transfer the engagements of the Society to a subsidiary of The Co-operative Group.”
The vote represents a major milestone for the proposed deal, though a second ballot will ultimately determine whether the transaction proceeds.
Should the merger receive final approval, more than 300 food shops, funeral homes and coffee outlets currently operated by Southern Co-op would become part of the national chain.
The combined organisation would boast sales of approximately £11.5billion and operate close to 2,500 stores throughout the country.
Members of Southern Co-op have voted decisively in favour of merging with the national Co-op Group
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Prior to yesterday’s ballot, Southern Co-op’s chief executive had cautioned that rejecting the merger could result in widespread branch closures and “likely administration” for the regional chain.
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.
The company has struggled with unsustainable operating losses and challenging trading conditions over several years, leaving it in a difficult financial position.
Mr Stimson 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.”
Southern Co-op has struggled with unsustainable operating losses and challenging trading conditions over several years
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PAJoining forces with the larger Co-op Group would create a co-operative society with enhanced scale and resilience to serve members, customers and communities across Britain.
Members will now be asked to cast their ballots at a second Special General Meeting on 21st May, as required under the relevant legislation governing such transfers.
A Southern Co-op spokesperson emphasised the importance of continued participation: “While the outcome of the first vote is encouraging, the 2nd resolution vote is equally critical and we welcome our members’ continued support and engagement.”
Co-op could gain roughly 300 food, funeral and Starbucks coffee branches
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PAThe spokesperson added that this initial ballot marks “the first step in the proposal to join forces with The Co-op Group and create a co-operative society with greater scale, resilience and impact for members, customers, colleagues and communities across the UK.”
The strong turnout at yesterday’s meeting, according to the co-operative, reinforces the value of member engagement in co-operative governance.