Senior managers at the Co-op have written to the board alleging a “toxic” culture at the top of the member‑owned group, according to reporting by the BBC. The email, sent in late January 2026 and seen by the broadcaster, describes “fear and alienation” among senior staff and says challenge is discouraged in meetings with the executive team, including chief executive Shirine Khoury‑Haq. Co‑op’s lawyers told the BBC they did not recognise the claims and did not believe they reflected wider colleague views. (aol.com)

One senior manager told the BBC: “You learn to look at your shoes. Nobody can speak their mind in this business – anyone who does has their card marked.” Others said leadership behaviours had “significantly degraded” the culture. The Co‑op said its decision‑making listens to views across the food and wider business, while noting not everyone will agree with final calls. (aol.com)

Managers who back the letter argue that the climate has fed poor decisions and a deterioration in operating performance. They point to closely watched benchmarks showing Co‑op’s grocery market share near record lows and claim monthly sales have fallen year‑on‑year since July 2025. Kantar’s releases through 2025 typically placed Co‑op around 5.1%–5.3% share; the Guardian reported a further slide over Christmas 2025 as Aldi and Lidl hit record festive gains. (upg-cd-we.kantar.com)

The letter credits the group for reacting quickly to the April 2025 cyber‑attack but says subsequent “fill the shelves with whatever’s available” tactics damaged sales and sent food waste higher. One person close to store operations described sending root veg to fill gaps in premium meat fixtures during the disruption. Co‑op said the period required “difficult and decisive choices.” The Guardian has reported the attack wiped about £206m from revenue and is estimated to have cost £80m–£120m in profit. (aol.com)

Despite the outage, management pressed on with a structural shake‑up: merging retail, wholesale and third‑party buying into a single Group Commercial and Logistics division (GCL) led by Matt Hood as chief commercial and logistics officer. The move aims to form a significant buying group spanning Co‑op stores, independent societies and Nisa, with logistics under one roof. Supporters see scale benefits; critics warned of supplier confusion during transition. (talkingretail.com)

Executive churn has followed. Jerome Saint‑Marc, who had overseen growth and B2B, exited in September 2025. A month later, chief commercial officer Sinead Bell and propositions director Adele Balmforth left during the commercial restructure. Last week, commercial director Rebecca Oliver‑Mooney confirmed her move to soft‑drinks challenger Hip Pop. Insiders say departures now run to “tens of colleagues” since GCL. (retailgazette.co.uk)

Co‑op rejects the claim of a failing culture and says colleague engagement remains high. It also points to a strengthened balance sheet and liquidity. Beyond ongoing insurance recoveries from the cyber‑attack, the group extended its £400m sustainability‑linked revolving credit facility to November 2029, providing additional headroom. The board also highlights lower debt than five years ago and a sizeable member base. (aol.com)

Trading context matters. Discounters have continued to take share as shoppers chase value, with the Guardian flagging record festive momentum for Aldi and Lidl. Kantar data shows Co‑op’s share hovering a little above 5% for much of 2025, implying limited headroom to absorb operational missteps. For a convenience‑led retailer, assortment discipline and waste control are central to margin. (theguardian.com)

Wholesale and partner dynamics are also in flux. The new GCL spans Co‑op company‑owned stores, independent societies and Nisa partners, creating a larger, centralised buying and logistics backbone. But changes have rattled parts of the independent channel, with reports last autumn that Co‑op Wholesale would cease supply to retailers tied to rival fascias-moves framed by one industry source as cost‑driven efficiency. (talkingretail.com)

The stakes go beyond headlines. Co‑op is owned by roughly 6.5m members and often cites its values and community work, including a 38‑school academies trust. After suspending traditional dividends a decade ago, the group shifted towards member pricing and community support. Any governance review of the letter will be watched for how culture, operations and member value are balanced in the months ahead. (co-operative.coop)