‘Fear and Alienation’: Concerns Over the Toxic Culture at Co-op’s Executive Level
Recent complaints from senior managers at the Co-op have identified a troubling toxic culture at the executive level of the 180-year-old member-owned food and service organization. Despite its commitment to ethical values, feelings of fear and alienation have emerged, particularly concerning the leadership under CEO Shirine Khoury-Haq.
Key Complaints from Senior Managers
– A letter, reviewed by the BBC, expressed that even senior staff are fearful of raising concerns about the organization’s direction.
– Sources have reported that a culture of discouragement towards challenges has led to:
– Declining morale
– Abrupt departures of key personnel
– A steep drop in profits
– A significant increase in food waste
Leadership’s Response to Concerns
– Lawyers representing the Co-op have refuted the claims, suggesting that these views do not reflect the broader leadership team’s perspectives.
– One senior manager recounted a hostile reaction to advice given over time: You learn to look at your shoes. Nobody can speak their mind in this business – anyone who does has their card marked.
Allegations of Degraded Leadership Culture
– The letter claims to echo the sentiments of many senior managers, emphasizing that leadership behaviors have significantly degraded the leadership culture of our Co-op.
– Multiple sources corroborated these claims, stating they feel intimidated and reluctant to voice their opinions in front of high-ranking executives.
Impact of the Cyber-Attack and Restructuring
– While the letter acknowledged a swift response to a crippling cyber-attack that caused £206 million in lost sales, it criticized strategies used to replenish stock, which allegedly resulted in poor sales outcomes and increased food waste.
– An example given highlighted the bizarre product substitutions made to fill gaps on shelves, such as replacing steak with parsnips.
Ongoing Decline in Sales
– Despite initial setbacks, the Co-op has launched major restructuring plans, merging various functions into a new unit called Group Commercial and Logistics (GCL), which experienced significant pushback from seasoned staff.
– Monthly sales have declined since July 2025, making Co-op one of the lowest-performing retailers in the grocery sector, with its market share nearing all-time lows.
– A Co-op spokesperson maintained that the organization has a solid financial standing, including reduced debt and increased cash reserves.
Departures of Key Personnel
– Following the GCL restructuring, several senior figures have left the company:
– Jerome Saint-Marc, Managing Director in Food
– Sinead Bell, Chief Commercial Officer
– Adele Balmforth, Propositions Director
– Rebecca Oliver-Mooney, Commercial Director, announced her exit recently
Union Concerns
– The shop workers’ union Usdaw has voiced its criticisms of the business decisions made and encourages anxious staff to join the union for collective representation.
– National officer Jayne Allport stated: Our reps continue to raise concerns from union members with senior management to seek solutions.
Employee Morale and Cultural Deterioration
– Comments from various sources paint a grim picture: The Co-op is a great business that has had a wrecking ball put through it. The collaborative and supportive culture has been ruined. It’s toxic now.
– Another source likened the situation to corporate gaslighting where management insists everything is fine while evidence suggests otherwise.
Co-op’s Rich History and Ethical Commitment
– Founded in 1844 by the Rochdale Society of Equitable Pioneers, the Co-op was designed to provide quality food at fair prices for working-class communities.
– A key passage from their code of conduct emphasizes an open and supportive working environment, a commitment currently under scrutiny.
– However, some employees feel betrayed by the current treatment of staff: I came to work at the Co-op because it did business the right way.”
Conclusion
The allegations of a toxic culture at the top of the Co-op must be carefully examined and addressed to restore trust and morale within the organization. With its commitment to ethical operations and member service, the Co-op must realign its leadership culture to reflect these values if it hopes to regain its standing and operational effectiveness.