The Co-op Group and Southern Co-op have set out plans to combine their operations, creating a larger co-operative organisation.

If the proposal proceeds, around 300,000 members of Southern Co-op would join the larger UK-based group’s existing membership base of approximately seven million.

Founded in 1873, Southern Co-op is owned by more than 340,000 members and employs around 4,500 people.

It currently operates more than 300 outlets across southern England, spanning food retail, funeral services, and Starbucks coffee branches.

By comparison, the Co-op Group runs over 2,300 food stores and around 800 funeral homes, alongside a wholesale division supplying close to 8,000 outlets.

Its activities also extend to legal and insurance services.

The Co-operative Group interim CEO Kate Allum 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.”

The enlarged entity is expected to provide members with access to a broader co-operative offering.

The transaction remains subject to approval from Southern Co-op members, as well as required regulatory clearances.

If agreed, the transfer of engagements is anticipated to be completed in the third quarter of 2026, at which point Southern Co-op members would formally join the enlarged Co-op Group.

Following completion, both organisations are expected to continue operating separately for a transitional period while awaiting clearance from the Competition and Markets Authority.

During this time, members of each society will continue to receive their current benefits.

Southern Co-op CEO Ben 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.”