Co-ops reveal their plans if members approve merger

The Co-operative Group and United Co-operatives have admitted the merger of the two societies will result in redundancies.

Last month, the two societies agreed to recommend to their members that approval should be given to a merger, which would create a single business with a turnover of £9.4bn, 87,500 staff and 2,249 food stores.

In a prospectus called Stronger Together, the societies say they would be "committed to retaining the people best placed to deliver a successfully amalgamated business," adding that "any redundancies would be kept to a minimum".

The societies will also review their office locations to ensure "they continue to meet operational needs". United Co-operatives is headquartered in Rochdale, while The Co-operative Group is based in Manchester.

The prospectus also lays down plans for the food business over the next three years should the merger go ahead.

The societies plan to expand the food business through organic growth and acquisitions, with a focus on convenience, community retailing, fresh food, ethical trade and competitive pricing.

Major refurbishment programmes will continue to be rolled out across the food store portfolios to improve store design, brand awareness and loyalty.

In January this year, United Co-operatives revealed plans to invest £150m over the next three years in extending and modernising its network of food stores.

The merger will create "significant" cost savings in logistics by reducing overlap and complexity, says the prospectus. It will also improve product flow, reduce food miles and cut energy consumption, the societies said.

"I would be thrilled if we could deliver the merger as the business case is compelling," writes Martin Beaumont, chief executive of the Co-operative Group.

Members of United Co-operatives will cast their vote on the merger at two rounds of special members' meetings between 16 April and 22 May.

Members of the Co-operative Group will be asked to give their approval to the merger at a special general meeting taking place on 28 April.