Co-op opens a new phase of price war in British retail with a plan to a billion of pounds to support families, businesses, and high streets in 2026. The announcement comes after the Autumn Budget, which introduced the business rates reform long-awaited by local retailers. The Co-operative Group welcomed the measure as a necessary step forward to restore stability to the sector.
The program "Back Britain"aims to respond to the persistent pressure on family budgets and the growing polarization of consumption through price cuts, investments in national supply chains, and targeted local interventions. For Co-op, which operates on a mutualistic and non-dividend-oriented model, price competition is not just a commercial issue, but part of its social mission.
The heart of the strategy is one of the broader price reduction programs never activated by the group: over 1.000 products Co-op will see a reduction in its 2.300 stores and online. The initiative, which is also open to non-members, positions Co-op as a key player in the UK retail price war, joining retailers who have intensified competition in recent months to capture the most cost-sensitive demand.
The price cuts are focused on key categories in the UK food supply chain: protein, dairy, horticultural produce and ingredients used in meal deals, which Co-op claims are the cheapest “British Meal Deal” on the marketThe goal is to capture the convenience network's 15 million weekly transactions, providing immediate relief for family budgets.
On the supply chain front, Co-op confirms investments higher than £700 million year to national farmers and suppliers, keeping the 100% British promise for meat, eggs, milk and flagship products such as potatoes and carrots. £580 million will be allocated to GNFR suppliers, while Co-op Power will manage over £6,4 million in low-carbon energy for UK businesses and organisations.
In parallel, the group is proceeding with a plan of approximately 100 interventions on the sales network, including new stores, refits and sustainable “showcase” formats. The commitment to safety also remains central, with £38 million per year to combat retail crime and strengthen collaboration with law enforcement.
For CEO Shirine Khoury-Haq, "being part of the price war isn't about impoverishing the supply chain, but about protecting consumers and communities." With this plan, Co-op consolidates its role as one of the leading local operators committed to the recovery of the British economy.
