Co-operative Group today (26 March) confirmed its chief executive Shirine Khoury-Haq is to step down, as it also reported a £35m underlying operating loss for 2025 after a cyber attack and rising costs disrupted trading.

The retailer said the cyber incident had a £285m impact on revenue and reduced profitability by £107m after it restricted its own systems to contain the threat. Group revenue fell 2.3% year on year, although this was broadly flat excluding the disruption.

Performance was further weighed down by around £150m in cost headwinds, citing higher regulatory charges rise in National insurance and extended producer responsibility (EPR) scheme costs.

Food retail sales declined 2% to £7.25bn, reflecting both the cyber disruption and a wider slowdown in the convenience market. The group said shopper behaviour shifted following the incident, affecting transactions throughout the year.

However, excluding the cyber impact, food revenue grew 1%, supported by a 15% increase in quick commerce and expansion of online services.

Looking ahead, Co-op said it expects continued pressure from weak consumer confidence and geopolitical uncertainty, but is targeting a return to growth while cutting £200m in annual costs in 2026.

Alongside the results, Co-op confirmed that Shirine Khoury-Haq will step down as CEO on 29 March after nearly seven years with the business, including four as chief executive.

The move comes as the group prepares to move from recovery following the cyber attack into a longer-term transformation phase.

“It has been an honour to lead our Co-op as CEO,” said Shirine Khoury-Haq.

“It is not only a commercial enterprise, but also deeply embedded in communities, doing right by them and our members every day.

“Following last year’s cyber attack, the organisation is now ready to deliver on an ambitious strategy of stabilisation and transformation. This extends beyond the timeframe I had planned for my CEO tenure, and now is the right moment to hand over to leadership that can commit to seeing the strategy through.

Chair Debbie White said 2025 was a “challenging year”, but those challenges have “helped us reshape Co-op for the future. Despite a cyber attack and tough market conditions, our colleagues have shown incredible resilience, keeping communities served and essential services running.

She added: “We thank Shirine for her leadership and for the significant contribution she has made to our Co-op, to our communities and to the co-operative movement during her tenure. The Board is grateful for her commitment and leadership, particularly during a challenging few years, and we wish her every success in the future.”

Kate Allum, currently a member-nominated director on the Co-op board, will take over as interim group CEO from 30 March while a permanent successor is sought.

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