Our 2025 Annual Members Meetings, held in Jersey and Guernsey on 20 and 21 May respectively, marked a significant moment of reflection and progress for the Channel Islands Coop.

With challenges weathered and achievements to celebrate, the events provided an opportunity for Board, directors and the executive team to update Coop members on a year of transformation, engagement, and renewed commitment to delivering everyday value.

Corporate Overview

Chairman Jon Bond opened the meetings by welcoming members and acknowledging the extraordinary efforts of colleagues, partners, and members throughout the past twelve months. It was, he noted, a year that began under challenging trading conditions, shaped by the residual impact of global crises, economic pressures, and most recently a cyberattack on the UK Coop Group. Yet, despite these hurdles, the Society made meaningful progress towards its strategic objectives - deepening member engagement, enhancing its proposition, and investing for the long term.

One of the most rewarding developments was the growth of Project Retail, which expanded to Guernsey schools after a successful pilot in Jersey the previous year. The programme, which offers Year 9 students real-world experience across various parts of the business, is a demonstration of the Coop’s commitment to the next generation and its belief in retail as a rewarding and meaningful career.

Performance Overview

Chief Executive Mark Cox emphasised that the year had been about strengthening the Society’s core business while preparing for the future. The strategy focused on rewarding loyal members, investing in competitive prices, and modernising systems to deliver improved service and value.

Member pricing, introduced in October 2024 following consultation and testing, has already saved members more than £1.2 million since launch, with projections to exceed £2 million within the full year. This change has also driven increased loyalty, with member transactions now accounting for 82% of all Coop sales—the highest level among UK consumer co-operatives.

The year also saw the roll out of a new, simplified digital sign-up process, which resulted in more than 2,400 new members joining, many of whom were younger shoppers attracted by the ease of use and tangible benefits. The introduction of more Honest Value products and investment in holding down prices helped the Coop absorb over one percent of cost price inflation, further shielding members from economic volatility.

Following recent media reports, Mark Cox updated members on Leale’s Yard in Guernsey. The situation remains a complex and frustrating one. As a retailer, not a property developer, the Coop has inherited a long-standing interest in the site but acknowledges that the scale of the proposed development is beyond its capability to manage or fund alone. Despite working diligently with a development partner to deliver more than 320 homes and significant economic benefit to Guernsey, recent negotiations with the States of Guernsey - centred around the Government purchasing 90 homes at below market value to rent to key workers - collapsed when the States chose to withdraw. The Coop considers this a missed opportunity and is now reassessing its options. Investment in the site has been kept to a minimum, limited to maintenance and planning costs totalling less than £50,000 last year, but the Society remains committed to protecting the land’s value while seeking a viable way forward.

Financial Performance

The Society delivered a significantly improved financial performance in 2024, reversing a £1.8 million loss the previous year to post a net surplus of £0.8 million. This turnaround reflects the successful integration of newly acquired pharmacies, continued cost control, and a responsible balance between member reward and long-term investment.

Turnover from the food and fuel businesses totalled £186.7 million—a 2.5% decrease on the previous year due to the effect of the previous year’s 53-week trading period. Adjusted on a like-for-like basis, however, turnover remained steady, underlining the resilience of the core business. Fuel volumes increased even as revenues declined, owing to lower wholesale prices and the Society’s own price cuts.

The pharmacy business was a standout performer. Sales rose to £22.4 million, up £7.6 million year-on-year, with over 1.2 million items dispensed—an impressive 85% volume increase on the previous year. In Guernsey, the Coop now handles 40% of all prescribed items, and 25% in Jersey. Investment in modern premises and new technology, such as the affectionately named “Spencer the Dispenser” robot at Queen's Road Pharmacy, has enhanced both service quality and efficiency.

Co-op Funeral Care, operating under its new brand across Jersey and Guernsey, also delivered a solid year with £2.1 million in combined turnover. Together, these business areas contributed to a robust trading performance and reaffirmed the Coop’s position as a trusted service provider during life’s most personal moments.

A dividend of 2% was once again recommended, returning £3 million to members. In addition, £2.8 million in interest was paid on member share capital, and the member pricing initiative delivered immediate savings valued at £500,000 in the final quarter of 2024 - and growing. Altogether, more than £6 million was returned to members in direct financial value.

Members’ funds remain strong at £134 million, comprising £83 million in A and B share accounts and £51 million in reserves. The Society has prudently shifted from a net cash position to a manageable net debt of £10 million, well within borrowing limits and below industry norms.

Coop in the Community

The Society’s community commitment was again evident throughout the year. Chief Property and Sustainability Officer Simon Matthews outlined progress against the Coop’s Blueprint for a Sustainable Future, launched in late 2023 and built on four pillars: Planet, People, Community, and Partners.

Energy reduction, emissions tracking, and waste minimisation featured heavily in the Planet agenda, with the Coop set to submit its first externally verified carbon footprint later this year.

On the People front, colleagues contributed nearly 800 hours of community volunteering and over 7,500 hours of training - an increase of 31% on the previous year. The gender pay gap continues to narrow, with a mean pay gap of 0% against Coop UK’s 10.8% and a median of 6.4%, down 2% on last year and the Society’s pay ratio of 11:1 compares favourably against the UK retail sector average of 140:1.

Community giving remained a key focus. The Community Fund distributed over £328,000 to more than 80 local causes, and through its partnership with OLIO, the Coop helped redistribute the equivalent of 81,000 meals to more than 15,000 local households. In-store awareness days and acts of kindness from store teams - such as delivering baby formula to families in need - demonstrated that community support goes beyond funding to meaningful local presence.

Member Value

At the heart of the Coop is its members, and the past year saw substantial enhancements in how members are supported and rewarded. Member pricing replaced discount weekends, providing instant, tangible value at the checkout. In parallel, increased focus on communication and engagement led to 20 member focus groups with over 240 participants. These sessions influenced decision-making on everything from pricing strategy to the future of Coop Mobile and new investment share classes.

The result has been a deeper, more connected relationship between the Society and its members. Member shopping baskets are larger, transactions are more frequent, and satisfaction is on the rise. Ownership, participation, and purpose remain core to the Coop identity.

Technology and Innovation

The Society continues to modernise its operations, investing in digital infrastructure and member experience. A new e-commerce website is set to launch in July 2025, and a dedicated member app is in development, offering a one-stop platform to shop, save, earn, and engage.

Excitement is also building around Coop Mobile, which secured regulatory approval in late 2024 and is on track for launch in Q4 2025. Designed in consultation with members, Coop Mobile will bring added convenience, value, and innovation to the islands.

Looking Ahead

The coming year will build on these successes. Store refits are planned at Forest Road Fuel, Longstore, Royal Terrace, and St Martins in Guernsey. Member pricing will be extended into pharmacies. The launch of Coop Mobile and the member app will mark major milestones in digital transformation. The Society will also continue exploring new investment models and ways to deepen engagement, including through a newly established Member Engagement Committee.

Amidst all this, one truth remains: the Channel Islands Coop is owned by its members and run for their benefit. Every decision is made with the long-term value and wellbeing of members and their communities in mind.

Board Elections and Motions

At the Guernsey AMM, Jill Clark was confirmed as the elected Guernsey director, having been nominated by Becky Link and Sarah Barrett. In Jersey Jennifer bridge MBE was elected, having been proposed and seconded by Robert Surcouf and Victoria Bisson.

Members approved all seven motions put to the meetings, including confirmation of the 2024 minutes, receipt of the Directors’ Report and Financial Statements, approval of the 2% dividend, and the reappointment of Grant Thornton as auditor.