This move, reportedly the biggest investment ever announced by a convenience retailer on pricing, sees Co-op, with over 2,400 food stores and 4.58 million active members, accelerate its member price benefits to provide new, lower ‘member-only’ prices on the everyday essential products that are the most shopped by their convenience shoppers, giving Co-op Members a chance to save up to 11% on retail prices with Co-op British Milk one pint at 85p, six Co-op free range eggs at £1.40 , whilst a Co-op sliced loaf will be 76p.
Co-op insight revealed, rather than loyalty pricing on an array of products which change every few weeks, shoppers think there's more benefit from lower prices on the items they buy the most, so it makes the biggest difference to their regular food spend.
This new significant price investment means Co-op Members will be able to save on products from milk, free-range eggs and bread to bacon and fresh chicken, too.
The £70m investment also includes a retail price reduction on more than 600 lines, ensuring they are in line or cheaper than other national convenience stores, and taking the total invested into Co-op prices this year to £90 million overall.
Matt Hood, who is the MD for Co-op Food, said: “Whilst food inflation is starting to slow down, household budgets remain under massive pressure, so this major price investment will make a real and tangible difference for millions of Co-op customers and members.
"This £70m investment is the most significant ever made by a convenience retailer, allowing us to turbo charge our member pricing proposition for the millions of our members who shop with us every day, by tailoring the price cuts to those key lines we know our members buy the most.
"We're focused on delivering member-value in a way that will make the biggest possible difference to their weekly budgets, and I’m clear there should be no compromise on quality and value by shopping in convenience. This isn't a loyalty scheme but rather the Co-op difference in action, whereby the people who own our business, our members, benefit every time they shop with the Co-op."
Closely following its business-model principles as a cooperative, Co-op continues to support its members and their communities through the cost-of-living crisis whilst still planning and investing for growth over the medium and longer-term.
The investment has been made possible by the major cost savings and business improvements introduced over the past year in the face of rising inflation and increased operational costs.
This move follows the introduction of ‘member only offers’ in April, where Co-op members can get exclusive lower priced promotions, an initiative which has seen nearly 40,000 new members sign up every month to take advantage of the deals, as Co-op targets to grow its member base by a million more members over the next five years.
The member-only offers will continue, alongside member only pricing, providing even more opportunity for savings and means a shopper could save on average £500 a year as a Co-op Member.
Underpinning this investment is the core proposition of Co-op’s membership whereby:
Members own the business and play an intrinsic part in the governance of the organisation
Members enjoy a wide number of benefits including money back on own brand purchases, personalised offers and gamification via the Co-op app, pre-sale opportunities for Co-op Live and music festival tickets
Co-op members help raise significant funds donated by Co-op to fund thousands of community causes, every year. £116m has been donated to communities since 2016
Co-op Member saving examples (all prices relevant for 14.07.23):
- Co-op British Milk 1 Pint: Co-op Member price 85p
- Co-op British Medium Free-Range Eggs 6s: Co-op Member price £1.40
- Co-op White Toastie Bread 800g: Co-op Member price 76p
- Co-op British Chicken Breast Fillet PMP 300g: Co-op Member Price £2.50
A £15 million investment in lowering prices was announced in April and Co-op has also invested an additional £5million into members offers.
Figure based on member purchase frequency and member discount, and total savings from purchasing both member-only promotions and member pricing.
The Co-op is one of the world’s largest consumer co-operatives with interests across food, funerals, insurance and legal services.
Owned by millions of UK consumers, the Co-op operates over 2,400 food stores, over 800 funeral homes and provides products to over 5,000 other stores, including those run by independent co-operative societies and through its wholesale business, Nisa Retail Limited.
Employing almost 60,000 people, the Co-op has an annual turnover of over £11billion and is a recognised leader for its sustainability and community-led programmes. The Co-op exists to meet members’ needs and stand up for the things it believes in.
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