Co-op Group and Southern Co-op have unveiled plans to join forces in a deal that would bring more than 300 Southern Co-op food, funeral and Starbucks branches into an enlarged Co-op Group, subject to member and regulatory approval.

Southern Co-op operates across the south of England, while Co-op Group already runs more than 2,300 food stores, 800 funeral homes and a wholesale arm supplying around 8,000 outlets.

If approved, the transaction would see Southern Co-op’s 300,000 members join Co-op Group’s existing seven million members through a transfer of engagements.

Southern members are due to vote on the proposal in May, and the transfer is expected to take place in Q3 2026 if approvals are secured.

Both businesses would then continue to operate independently for a period while Competition and Markets Authority clearance is sought.

For Co-op Group, the move would strengthen its convenience footprint in the south of England without relying on organic store openings alone.

It would also widen its reach across adjacent services, with Southern Co-op operating funeral homes, crematoria, natural burial grounds and a Starbucks franchise alongside its food estate.

The proposal comes as retailers continue to look for scale, density and operational resilience in convenience, particularly in regional markets where store networks and local membership bases are already established.

Co-op Group said the enlarged organisation would create more trading opportunities and broader member benefits, while Southern Co-op said the deal represented the best path forward for its long-term future.

Kate Allum, interim chief executive of Co-op Group, said the tie-up would create “new opportunities” for members across a wider society.

Southern Co-op chief executive Ben Stimson said the two businesses shared values around democratic membership, ethical sourcing and community support.