We recently announced that we are in advanced discussions with Central Co-op regarding a potential merger. Our members' input is vital as we move forward with this proposal.
Below, you can watch the full announcement video from the leaders of both Societies and review our Frequently Asked Questions (FAQs) for more information.
Related Member Events
Following our recent announcement that we are in discussions with Central England Co-operative regarding a potential merger (you can read more about this here), we are inviting all members to join our information and Q&A sessions in November.
We believe your voice is vital, and these sessions are an opportunity for you to engage directly with us on these important future plans.
Please click on any of the events below to book your place:
On 17 November and 2 December we will be hosting two Special Members’ Meetings as we consider the proposed transfer of engagements to Central England Co-operative. We encourage all eligible members to attend and cast their vote on this historic decision.
The first of two formal Special Members' Meetings is where members will vote on the proposed merger with Central England Co-operative. The outcome of this meeting is crucial for the future direction of The Midcounties Co-operative. In accordance with our Rules, a second meeting is required two weeks later to confirm this resolution.
Please click on any of the events below to book your place:
Proposed Merger Member Information Pack
To view the key documents ahead of the events, please click on the links below:
Frequently Asked Questions
Q1. Why has Midcounties Co-op decided to explore this merger now?
The competitive environment has evolved significantly since the covid pandemic, with changes in consumer behaviour and the rise of AI-driven efficiencies among larger competitors. To remain competitive and uphold co-operative values, Midcounties believes that combining resources with Central Co-op will provide the scale and efficiency needed to thrive for the long-term. We see this as a strategic evolution in response to emerging challenges.
Q2. Why has Midcounties Co-op decided to explore merger opportunities with Central Co-op, rather than other Independent Societies?
Central is a great partner for us – we’re both very similar sizes, we’re neighbours, and most importantly, we share the same values and have the same vision for the way a co-operative business should operate. We also have a strong history of collaboration over recent years. Midcounties acquired Central’s travel business in 2019, and Central acquired our funeral business in 2021, and we've continued to deliver services for both sets of members into those businesses.
Q3. What impact would a merger have on funding for the Midcounties Co-op pension scheme?
In short, very little. Midcounties has significantly reduced its pension deficit over the last number of years through contributions into the scheme made by the Society and through investment returns in the scheme. (The increase in interest rates since 2022 has also helped reduce the deficit given the way the calculations work). The Society has just agreed a formal valuation with the scheme trustees. This sees the deficit clearing in the next couple of years, a very welcome position. The Society (and the new merged Society going forwards) will be obliged to make further contributions into the scheme, but in total, these are much less than the £7m p.a. the Society has been putting into the scheme for the last number of years. The scheme trustees have also completed an evaluation of the merger, something they are obliged to action under pension regulation, concluding that they have ‘no objection’ to it – a formal way of saying that they are comfortable with the merger and its impact on the pension scheme.
Q4. Will the merger need approval from the competition authorities?
Yes, and this has already been received from the Competition and Markets Authority who had to review the merger to make sure there were no competition issues arising from it in locations where both societies have food stores close to each other.
Q5. If the merger was successful, would the enlarged Society still be committed to supporting the co-op movement in the UK and internationally?
Absolutely. Both Societies have agreed that this support should be maintained. Both Boards believe the merged Society will be able to have greater impact within the co-operative movement both nationally and internationally, something they welcome. So the societies are committed to supporting co-operative organisations such as Co-operatives UK, the Co-op College, Co-op Press, the Co-op Party and international bodies like the ICA and Euro Co-op.
Q6. What would be the impact on colleagues in terms of redundancy if the merger was approved?
The majority of roles, particularly in frontline services like food stores, nurseries, and travel agencies, are expected to remain unaffected. However, there will be duplication of certain roles, particularly in the Head Office. So some central roles will be consolidated, and there will, inevitably, be some redundancies. We will work closely with those colleagues so affected in a considered way, as it’s important we treat colleagues fairly as that's the way we do things as a co-operative business. We expect to be confirming the leadership at the time of the formal member meetings set to approve the merger. Right for now though it's very much business as usual for everyone.
Should the merger proposals move forward and then be approved by members, there would be a carefully phased process of integration as we become one new Society, and our colleagues would be kept fully informed throughout. The full integration process will likely take 2 – 3 years to ensure all the benefits of the merger are fully realised.
In the meantime, we want to make sure that every colleague can ask questions you might have and we will be holding regular briefings and answering any questions they may have throughout this process.
Q7. What is the expected timeline for completing the merger?
We will need to hold two formal member meetings, and are planning some member Q&A and information session events beforehand. These will all take place in November and early December. Legal completion is anticipated in early 2026, subject to regulatory approvals. After then, as noted in Question 6, there will be a carefully phased process of integration to ensure the merger achieves all the synergies and benefits and other opportunities that it promises. This will likely take 2 – 3 years to ensure all the benefits of the merger are fully realised.
Q8. What does Central Co-op do well which could be further developed in an enlarged Society if the merger was successful?
Central Co-op is recognised for its strong food and funeral businesses, effective procurement, and great member engagement practices. It provides a full suite of funeral services, owning nine florists, three stonemasonry outlets, a coffin factory and a crematorium in addition to its 170 funeral branches. It also offers fully regulated pre-payment funeral plans. It’s funeral business grew significantly when it took on the Society’s funeral business in 2021.
Q9. Will Members have the same opportunity to engage, including investing in the new Society?
Both societies believe, strongly, in member engagement and put significant effort into providing opportunities for members to engage in their communities and with their Society in ways that work for them. When we first started discussing the possibility of merging, one of the key principles we both wished to ensure endured into the new Society was to keep the best interests of members – both present and future – right at the heart of the Society.
Clearly, we don’t take exactly the same approaches to member engagement at the moment. But what we want to do going forward once the merger completes is to take the best engagement practices of both societies and shape them to work for the new Society going forward. So we are, very deliberately, retaining the formal member engagement bodies of both societies for the first year of the new Society and will be working closely with them to develop a ‘best of both’ approach for the long-term.
Q9a. What happens to my share account/fixed term investment when the merger completes?
At the point the merger completes, the share capital owned by members in Midcounties transfers across to Central Co-op on a £ for £ basis. The same applies for the share capital held by members in Midcounties’ fixed term investments. So, in practical terms, there’s no change to the existing arrangements.
Q10. If the merger was approved, where would the new Society’s head office be located?
No decision has been made regarding a single head office. Both societies own their head office buildings (Warwick and Lichfield) which provides flexibility. Certainly, the merger presents an opportunity to rethink how workspaces are used, especially in a post-pandemic world.
Q11. What would be the process for choosing the new name of the Society?
A new name will be proposed to members that reflects the heritage and future ambitions of the merged society and aligns with co-operative identity and values. It will not include ‘Central’ or ‘Midcounties’ to distinguish the new Society from the past. This is something that needs to be actioned in good time so will be high on the new Board’s agenda. We’re encouraging members to submit their thoughts for a new name, so if you have any ideas, please email them through to member.communications@midcounties.coop.
Q12. How will the new co-operative ensure that its combined businesses complement each other and deliver greater impact?
Our working assumption is that the businesses operated by both societies will continue in place for the foreseeable future to meet our members needs and expectations. So, all the businesses are included in the five-year plan for the new Society that has been drawn up. Over time, the new board will assess the strategic fit of each business area, considering member needs and societal changes. Innovation and adaptability will be key to ensuring the merged society’s offer remains relevant and impactful.
Q13. What does the future of Midcounties look like if the merger doesn't go ahead?
It is worth stressing the point that the Boards of both societies believe the merger offers the best long-term future for members and colleagues given the opportunities it presents to develop the business, and given the competitive and trading headwinds impacting both societies.
However, if members do not approve the merger, Midcounties will continue operating independently with a clear strategic plan. This includes improving efficiency, reducing debt, and investing in areas like member services. Importantly, it also includes investigating other major strategic partnerships as, like Central’s Board, we that merger represents the best interests for the long term future of the members of this Society.
Q14. What are the likely savings and cost efficiencies which could be realised as a result of the merger?
In conjunction with Central Co-op, we have developed a five-year business plan that includes significant investment in the first one to two years to integrate systems and teams. A major focus is on IT, where both societies currently use some of the same systems but pay duplicate licensing fees. By consolidating and choosing the most effective systems, we can reduce costs and improve efficiency really very significantly.
The needed investment over the next three years is expected to be around £23 million, mainly to support integration. However, once completed, the merger is projected to deliver annual savings of approximately £16.5 million through better buying power, streamlined contracts, and reduced duplication in systems and infrastructure.