Southern Co-op’s transport and distribution operation will continue to operate as normal following the retailer’s transfer into The Co-operative Group, although the operation’s long-term future will not be decided until competition regulators have completed their review of the deal.
The transfer of engagements, announced this week, sees Southern Co-op become a wholly owned subsidiary of the Co-op Group under a new company, Siena Co-operative.
However, the transaction remains subject to approval by the Competition and Markets Authority (CMA).
A spokesman told MT that until that process is complete, both businesses will continue to operate independently.
He added: “Southern Co-op colleagues, including those working in transport and distribution, transferred to Siena Co-operative Limited under TUPE arrangements upon the completion of the Transfer of Engagements.
“As communicated to colleagues, the transfer results in a change of employer only, with terms and conditions unchanged.
“The transaction remains subject to CMA approval and both organisations continue to operate completely separately while the CMA review takes place.
“Therefore, it is too early to speculate on any future organisational changes and our focus remains on continuing to serve members, customers and communities while the regulatory process runs its course.”
Southern Co-op operates 173 food stores across the south of England, alongside funeral homes, Starbucks coffeehouses and Welcome franchise stores. The business employs around 4,500 staff and 340,000 members and has long worked with the Co-op Group through the Federal Retail Trading Society buying and supply group.
Co-op Group has 2,300 food stores, 800 funeral homes; a wholesale business supplying around 8,000 outlets; and a legal services and insurance business. It also boasts seven million members.
Announcing the deal, Kate Allum, the Co-operative Group interim chief executive, said it was an historic milestone for both societies, combining over 300 years of co-operative heritage.
She added: “Together, we can create more opportunities, deliver greater value, and drive the growth of co-operation across the UK for generations to come.”
Ben Stimson, Southern Co-op CEO, said the two organisations share co-operative values and a commitment to making a positive difference in the communities they serve.
He added: “Our organisations have worked together successfully for many years, including through the Federal Retail Trading Society (FRTS) buying and supply group and the wider co-operative movement, and today’s announcement reflects the strength of that longstanding relationship.”
