AMM 2025 - questions and answers

Q. Could we have stalls back at the Annual Members’ Meeting, like the previous events at the Lincolnshire Showground?

A. This year, we decided to move our Annual Members’ Meeting to a new, more central venue in response to member feedback asking for better transport links and improved accessibility. STACK allows us to welcome a larger number of member-owners, helping more people take part in our governance while also enjoying food, drinks, and evening entertainment. Different venues offer different experiences, and the features of future events (such as stalls) will depend on the opportunities each venue provides. We’ll continue to shape our events based on what works best for our members.

Q. Will the board this evening undertake to discontinue the use of the term ‘cashback’ and in its place re-instate the word ‘dividend’?

My reasoning in support of this question is as follows:

1. Heritage: The board will be fully aware that one of the cornerstones of a co-operative, and Lincolnshire Co-operative in particular, is the sharing of profits as dividend in relation to purchases made by its members. The word dividend carries the concepts of mutuality and community ownership. Dividend has been part of our DNA for over 160 years. Given this, it is impossible to understand why dividend has been expunged in respect of member purchases and replaced by the term ‘cashback’.

2. Legal risk: It is fair to say that people generally well understand the meaning of ‘cash’ and its flexibility of use. But if definition be needed then something like: ‘ready money one can spend with almost every offline trading entity’ should suffice.

‘Cashback’ can be redeemed only on Society goods and services.

Therefore, it is impossible to be satisfied that the term ‘cashback’ is comfortably immune from legal challenge from, say, competitors, the Trading Standards office, the Advertising Standards Authority, or any individual consumer on the grounds of it being misleading and simply incorrect. It could easily be contended that one cannot simply re-define ‘cash’ by creating a set of terms and conditions and that the definition of cash cannot be dissociated from the term ‘cashback’.

4. An alternative: It is tempting to speculate that the term ‘cashback’ was invented by someone who struggled to understand the meaning of dividend and assumed this was the same for everyone. There is no place in effective marketing policy for such whimsical prejudice. However, if the board is persuaded on the basis of sound market research that dividend lacks consumer appeal, surely the best course would be to invest in a marketing programme to improve perceptions.

5. The need for clarity: The adoption of the term ‘cashback’ has resulted in a two-tier system as well as disorderly and muddled marketing.

The word dividend has to continue to be used in annual reports and accounts of course in order to enjoy the favourable tax treatment afforded by CTA09/S499.

My local food store displays a banner advertising ‘cashback’. But my issued till receipt (02/12/25) includes NO mention of ’cashback’. Instead, it has the heading ‘DIVIDEND STATEMENT’ above £ figures for total dividend earned and points redeemed. Presumably this is to create a valid ‘paper trail’ for dividend accounting purposes.

At least it is less than a 100% commitment to the change to ‘cashback’, hopefully leaving the door open to reverting to dividend now.

A. We launched the 1% cashback scheme in September 2024, following member and customer research to understand what they wanted as part of their Lincolnshire Co-op membership. We decided to convert to the more widely used term cashback to attract more members to the society. Since then, 24,000 new members have signed up with the largest proportion in the 20-to-39-year age group. We will continue to use cashback for the foreseeable future with the aim of gaining more members, however the terms cashback and dividend can be used interchangeably.

Q. Can the board confirm that all the assets of the society are owned by and invested in the membership/members?

A. All assets reported on the balance sheet in the annual report are owned by the society and therefore owned by members. The profit generated from our asset base is recycled locally, by sharing cashback with members, investing in new and improved services, and by supporting local community groups, charities and schools through our Community Champions scheme.

Q. Will the Board confirm and undertake to ensure that all the questions put by the members for/to this Annual Members Meeting and their answers given are made available to all members (within a reasonable timescale) and be mindful of the fact that not all members have access to the internet / society website.

A. All questions and answers are published on the society’s website and if members require a printed copy, they can call our membership team to request this.

Q. Lincolnshire Co-op has provided a members Christmas bonus for years and for 2025 it has not done so. Is this marking the end of such a bonus in future years, or are the board planning that this will come back in future years? If so, what have the board done to secure that approach?

And

Q. What cashback bonus' will the membership offer in the near future?

A. We share our profits by giving 1% cashback on purchases throughout the year. Depending on our financial performance and the level of profit we make, we may pay a cashback bonus at the end of the financial year. Our underlying measure of profit, known as EBITDA, reduced by 25% this year. As a result, we are not paying a cashback bonus to our members this year, as the cashback distributed throughout the year totalled £1.6m.

Our strategy to 2030 aims to improve our future profitability, and the board decides how much of our profits are distributed to members each year.

Q. Very disappointed to hear there will be no Christmas bonus this year. 90% of your customers look forward to this more than anything else, and to hear you would rather give monies to 50 charities is a big let-down. This will have an impact on your customers... No doubt and a better explanation is needed.

A. We ran a survey in 2024 and asked, ‘If there was only one benefit on offer to members when buying goods and services from Lincolnshire Co-op, which would you prefer this to be?’

45% of our members selected ‘dividend every time you shop’ and 26% selected ‘dividend bonus at Christmas’. And in this year’s survey 70% ranked ‘reward every time you shop’ as the most important benefit of membership. ‘Rewards linked to helping the local community’ was the second most important benefit.

The purpose of Lincolnshire Co-op is to make life better in our communities and we try and do this through member benefits, community support, being a good employer, and investing across the trading area to support the local economy. We do understand members’ disappointment about not receiving the cashback bonus this year.

Q. You get a cashback of 25% if you buy 4 bottles of wine, this can amount to a considerable amount. How can you justify this when some people will not take this offer up, when not giving the annual end of year bonus?

A. These incentives have multiple purposes; they reward members for shopping with us, they help us boost sales and they encourage customers to become members and get the benefits.

We ran a survey in 2024 and asked, ‘if there was only one benefit on offer to members when buying goods and services from Lincolnshire Co-op, which would you prefer this to be?’

45% of our members selected ‘dividend every time you shop’, 29% said ‘instant discounts’ and 26% selected ‘dividend bonus at Christmas’. We have been considering this in terms of balancing priorities for member rewards this year in light of reduced profits but understand that members will have varying views.

Q. How do you find out about these additional services for members please?

A. We have lots of great member benefits available! These include exclusive offers and discounts, access to events, and cashback when you shop with your dividend card. To find out more, see Become a Member For Exclusive Access - Lincolnshire Co-op or call our membership team on 01522 781 135 (Monday-Friday 8.30am-5pm).

Q. Why does the Chair continue to refer to customers and ignore members?

A. We recognise that many of our customers are also members, so the term can, at times, be used interchangeably. Members own our co-op but customers are also important for our long-term sustainability. We are always keen to grow our membership and encourage more customers to become members too.

Q. Why can’t we have two apps for your dividend card? It only seems to work on one phone at a time.

A. At the moment, the dividend card app can only be linked to one device at a time for security and account protection. Because membership is different from a loyalty scheme, you’re a member-owner of our co-op, we encourage each person to have their own individual membership. This helps ensure your cashback, offers and membership information stay secure and accurate.

Q. Is the abolition of a half year meeting, a sign that the board and executive are unwilling to address members' concerns and questions, if results continue to collapse?

A. The half yearly members’ meeting is not a statutory requirement in the society rules, although we have traditionally held an event to update on the mid-year results and engage with members. The costs to run this event are the same as running our annual members’ meeting, and the board have decided that funds would be more wisely spent on running smaller member engagement sessions as we develop our membership programme for the future.

Q. What do you attribute the increase in membership too? What new ideas do you have to increase further?

A. This is partly due to new members joining us when we have opened new stores, and we also had a strong response to the 1% cashback campaign launched in September 2024.

We are working on improving our membership experience in the future so it connects people to local products and services that they are interested in and would make life easier for them. As a place-based organisation, we want this to be about the particular aspects of living in Lincolnshire (and a bit beyond) - more of a citizenship than just a membership loyalty scheme. We hope this will be of value to local people and will ensure our relevance over the years to come, maintaining our membership’s appeal.

Q. Thank you for the presentations. Can I ask what the Lincolnshire Co-op has done over the last year to support the wider co-operative movement (e.g. Co-op News)? 2025 being the UN International Year of Co-operatives.

A. Lincolnshire Co-op is one of the founders of the Fund for International Co-operative Development (FICD) which launched at the start of 2025 to coincide with the UN International Year of Co-operatives. The Fund will support three strands of support: Crisis response to enable immediate humanitarian assistance to areas affected by violent conflict and natural disasters, administered through co-operatives and co-op infrastructure organisations; medium-term support to develop new co-operatives and strengthen existing co-ops following conflicts and natural disasters; and long-term mutual aid to promote social justice through supporting the development of primary and secondary co-ops and co-operative networks and partnerships.

Q. How does Lincolnshire Co-op decide which local good causes and community groups will benefit from charitable donations?

A. Members are able to vote for Community Champions. These local groups and good causes receive thousands of pounds each year, as a donation is made every time a member shops with their dividend card, colleagues run fundraising events, and customers donate change.

We also have a small number of sponsorships which are with professional organisations where we are working in partnership with them to deliver community benefits.

With all donations there is certain criteria such as organisations must be local or supporting local people, they must be set up with a bank account in the organisation's name, we don't support individuals etc.

All details of our Community Support Policy can be found here. (Link to: Community-Support-Policy-Customers-25.docx)

Q. Thank you for all the hard work you have done to enable this event to happen tonight, it has been enjoyable to be part of. I would be interested to hear more about the support pledged to Horizon Youth Zone and why you feel this is an important step for the Co-op.

A. We are one of the founder patrons of Horizon Youth Zone in Grimsby due to formally open next year. We plan to work with them to deliver a number of activities with the young people such as healthy eating and employability sessions. Find out more about Horizon here - Home Page - Horizon Youth Zone

Q. A huge amount of time, resource and money was spent on the aborted Support Centre move. Why was it so miscalculated, especially as we own the building?

A. The plan to move our Support Centre to Thomas Parker House in Lincoln was intended to be cost neutral. However, during the exploratory phases of the project we came across several barriers which meant we couldn’t deliver on that basis. So, we made the decision to put a move on hold for the foreseeable future.

During the project, the business has also faced challenges including steep rises in costs, such as increased National Living Wage and NI contributions. It means we have to focus our investment in areas where we see a strong return.

Q. Is nepotism at the heart of Lincolnshire Co-op’s recruitment?

A. No. The Society has a robust, transparent and well-governed approach to hiring, designed specifically to ensure fairness, consistency and equal opportunity for all candidates.

In February 2025, we launched a new Recruitment and Selection Policy to provide clear structure and governance across all Society recruitment activity. This policy sets out the standards and expectations for every stage of the hiring process and reinforces our commitment to ethical, inclusive and merit-based selection.

We do encourage colleagues to submit referrals, as they can be a valuable source of talent — particularly individuals who align with our Purpose Beyond Profit 2030 goals. However, all referred candidates are subject to the same rigorous interview and selection processes as every other applicant. A referral provides no advantage beyond introducing someone to the organisation.

Additionally, if there is any known relationship or association between a hiring manager and a candidate, this is always declared to the TA team. In such cases, we ensure that an independent person sits on the interview and selection panel, safeguarding impartiality and upholding our commitment to consistency and fairness.

Q. There are always lots of jobs advertised at Head Office but food stores are short staffed.

A. Roles advertised at our Support Centre are either direct replacements for colleagues who have left, or carefully considered new roles identified as essential to help the society continue improving how we operate. None of these roles are created lightly. Each vacancy is reviewed and benchmarked to ensure it is necessary, aligned with our strategy and able to add value back into the business.

For example, we have seen an increase in IT roles because we are expanding our technology footprint to ensure we maintain stable, secure and modern systems — one of our foundational pillars for Purpose Beyond Profit 2030.

Food store recruitment continues to be a major focus for us, and around 75% of our total annual vacancies are for food store roles.

Q. For teenagers old enough for a job how would they go about getting a job with Lincolnshire Co-op and how easy is it to get promotions?

A. People can join Lincolnshire Co-op from 16 years old in many of our roles, particularly in food stores and other customer-facing positions. Some roles do require colleagues to be 18 or over, usually due to legal age restrictions around selling certain products. All our current vacancies are advertised online, and applying is designed to be straightforward and accessible.

Once in the business, colleagues have real opportunities to progress and build a long-term career. We strongly encourage internal progression and regularly advertise roles internally, giving colleagues the chance to apply for their next step. Progression is also supported through regular conversations with line managers, where colleagues can discuss career aspirations, development needs and future opportunities.

As an example of our commitment to internal development, over the years we have run several leadership programmes, and more than 50% of our existing food store managers have progressed through these courses. This demonstrates how seriously we take growing our own talent.

We also support development through mentoring, on-the-job learning and access to online learning resources, ensuring colleagues feel supported to grow at every stage of their career.

In short, Lincolnshire Co-op offers more than just a first job — it offers a place where young people can learn, progress and build a meaningful career over time.

Q. Will the promises to increase and set employee wages result in reducing the amount of staff hours available to each store?

A. We regularly review the staffing levels in all our trading branches to make sure we have the right people, in the right place, at the right time.

We use a salary planning tool to identify how many hours are required in each shop based on tasks and activity to ensure we get this right. This is a customer-led approach, rather than being cost-led, although we do review and control our salary bill carefully to ensure we manage this as efficiently as possible.

Providing high standards of customer service is important to us, so it’s important that we have the colleagues in place to facilitate this.

Q. There has been no communication to the pension members in regard to the “Pensioners’ Christmas Gift”, previously £100 to each pensioner. Last year the gift was credited to individual's dividend cards on 24 November 2024. Am I to assume that this has been withdrawn. If so, could you explain why?

A. The retired employees’ Christmas bonus of £50 is being paid out on 12th December.

Q. Lincolnshire Co-op is very keen to support various charities and community groups, but what about the retired employees Christmas bonus? I am sure the co-op is not that hard up, to not pay this bonus to retired staff.

A. The retired employees’ Christmas bonus of £50 is being paid out on 12th December.

Q. At the last member’s meeting it was stated that you were considering providing blister pack recycling points in coop pharmacies. Can we have an update please?

A. There is a great deal of complexity and regulatory compliance around recycling blister packs, and we are continuing to review our options on how we can work with a recycling company to support a recycling service.

Q. Why is it that there are some products being purchased in pharmacy that doesn't come with dividends. For example, I always buy a baby formula for my baby and it's always been scanned for dividends but suddenly around October it stops. Why?

A. Although colleagues may have scanned your dividend card at the time of purchase, no cashback will have been applied for the purchase of baby formula. This is due to regulations around promotions related to baby formula.

However, this issue has recently been in the news, as the government are looking to revise this legislation, so this is subject to change.

Q. In Louth, we have a great Lincolnshire Co-op pharmacy which stock a wide variety of super bathing products and perfumes. It no longer does and has empty shelves. Couldn't we have these lovely products back again?

A. The impact that NHS funding cuts have had on community pharmacy has been well-publicised. To improve our offer and ensure what we have meets the needs of a wider range of people in our communities, we have been reviewing what products we stock over the counter in our pharmacies.

This has been a large-scale project and may have led to some disruption in your local branch. We are now reviewing and analysing the data to see where we need to make any changes to what’s on offer; we’ll pass your feedback on.

Q. Re Lincolnshire travel; how much potential business was lost when the decision was made to limit the sale of euro currency? We went across the road to Tui and bought currency there at a better rate. On previous occasion when buying currency, we also purchased last minute holiday.

A. Unfortunately, due to operational issues earlier in the year, we were unable to sell currency for a short period. Due to this, our foreign currency sales were down 60% compared to the same period last year.

Thanks to the hard work of our travel colleagues, this issue has now been resolved, and we are delighted that our travel teams are providing this valued service to our customers once again. We apologise for any inconvenience during this time.

Q. Can the Co-op please bring back Christmas roast potato crisps?

A. We’re sorry you miss the roast potato crisps, but they were discontinued by our buying group this year. We do have some amazing limited-edition festive flavours though – pigs in blankets, duck and clementine, and camembert and black garlic.

Q. In recent months, it seems like Lincolnshire Co-op’s identity is fading and it’s starting to look more like a Poundland or Heron Foods. What is the society doing to maintain its identity as a high-end convenience store?

A. Providing valued services to our local communities means making them accessible to as many people as possible, and we know times have been tough for many people locally. The recent deal drop offers attract more people into our stores, which enables us to invest in our communities.

We’ve received positive feedback on how eye-catching these offers have been from existing members and new customers, and they have increased the percentage of people who see us as offering good value for money from 43% to 47%.

However, we do recognise the importance of balancing these value-led offers with branding that reflects our community values, local support, and ethics, and will continue to work on that.

Q. Will you be encouraging other co-ops to copy the 75% off at 3pm bakery initiative?

A. To cut food waste, we sell products that are nearing their use by date at reduced prices – this is something that all our food stores implement when necessary.

Q. Is it possible to have a greater selection of fruit and vegetables, such as pineapples, persimmons, passion fruit and papaya, and veg such as pak choi, aubergines, cavolo nero? For me, these are only available by making a 6-mile car journey.

A. Most of our stores are convenience format and space is limited. Our range is determined by the buying group, and while we try to have a good offering of fresh produce in our stores, we must balance this with demand and food waste. We'll pass your product suggestions onto our food team for consideration.

Q. Can you explain why on some items the Long Sutton food store is cheaper than Sutton Bridge and Holbeach stores? Also, can you please congratulate the staff in the Long Sutton store cafe on the cooked meals and service they provide.

A. Various factors go into deciding prices in each store. One consideration is the cost of running that particular outlet – that’s why you’ll see a difference in cost between certain stores. Thank you for your kind feedback for our Long Sutton team – we'll be sure to pass this on.

Q. Could you tell me why we can no longer buy Gadsby’s fresh cream turnovers etc in the store?

A. Our range of products is constantly being reviewed, based on buying patterns, trends and new goods coming onto the market. It can mean we start selling more of a variety of products, but it can mean that we stop selling certain products too. We have passed your comments back to our commercial team.

Q. We live near Metheringham, for several months yellow bellies haven't been available. Will they be making a return please? We miss them.

A. Our range of products is constantly being reviewed, based on buying patterns, trends and new goods coming onto the market. It can mean we start selling more of a variety of products, but it can mean that we stop selling certain products too. We have passed your comments back to our commercial team.

Q. Why does Welton Co-op close at 4pm on Sunday and Dunholme Co-op close at 10pm?

A. Due to Sunday trading laws, any store that is larger than 280m² can only trade for six hours on this day. Any smaller stores beneath that limit can trade for longer. If there are any changes to the current trading laws, we will reconsider different opening hours.

Q. Any chance of larger text in store?

A. This year we invested in Electronic Shelf Edge Labels (ESELs) and we expect the rollout to be completed in January 2026. These digital labels mean text is clearer and more accessible for customers to read and we also have flexibility to adapt their templates when necessary. We have had positive feedback from customers and colleagues so far.

Q. Self-check outs were available in Tattershall store and have now been removed. They did not work well as they could often get into some kind of software loop and transactions could not be completed easily if at all. If new self-serve terminals are being tested and rolled out across stores again will they have much-improved software and usability compared to this previous experience?

And

Q. Are there any plans to have self-service checkouts in stores? This would help speed up service for people who want a quick in and out, rather than waiting for people chatting to staff.

A. We’re currently trialing new self-checkouts in four stores including Sincil Street in Lincoln City Centre. We have plans to begin a rollout in 76 stores next year between March and June.

As a community-led retailer, we will give our customers the choice between manned and self-service checkouts in these branches.

Q. When will the food department have an improved stock control system that does ordering in real time and removes the feast and famine that is sometimes seen and more importantly brings about lost sales?

A: We are currently testing a whole new stock system for our food stores, which include AI demand forecasting and simpler instore stock management. We will be launching this in the summer of 2026.

Q. Do you feel that the local store in Washingborough will remain sustainable after the recent opening of the new Sainsburys store?

And

Q. We have just had a Sainsbury's open in our village that has impacted our local coop. How will you make it so we are competitive and not lose our customers?

A. We offer a different range to Sainsbury’s, which includes high quality, local produce, and we reward members with 1% cashback when they shop with us, alongside providing other member benefits. Plus, as a community retailer, customers know that their money stays local when they shop with us. We raise money for local good causes and invest profits into our local communities.

Our friendly team have established fantastic relationships with their local community and we have been running promotions to help drive footfall and sales, strengthening our sustainability.

Q. The baskets in my local co-op are often dirty/sticky. Can they be cleaned more frequently?

A. We are sorry to hear about this, we pride ourselves on high standards of service and cleanliness, and it’s disappointing that these standards haven’t been met in your experience. We have noted your feedback and passed it onto the relevant team.

Q. I understand the need for shop floor staff to have headsets and microphones, but at my local co-op, it distances the staff from the customers. While at a till, paying for my groceries, I want the till operator to communicate with myself and not laugh and talk to another colleague on the shop floor. Sometimes I have had a whole transaction, and the till operator has not actually spoken to me.

And

Q. I accept that headsets are a thing of today. I’ve got to say that it becomes intimidating when you are shopping and the staff are more interested in personal conversations between themselves than attention to you as a customer.

A. In our food stores, colleagues are provided with Quail headsets which connect colleagues to other members of the team. These are in place to support colleague safety and help improve efficiency.

However, we are sorry to hear that they are not always being used as intended and will pass your feedback onto the relevant teams.

Q. What are we doing to reduce food waste upstream of the stores? And what do we do with surplus use by dated food and best before food at the end of the day?

A. To cut food waste, we sell products that are past their ‘best before’ date at reduced prices. We display signs on our shelves to help make these products easy to spot. The ‘best before’ date is given by the manufacturer to tell consumers how long a product is at its very best, but some products can be sold and used past this date. These are ‘ambient’ products – cans, tins, packets – and some fresh products like fruit and veg.

We cannot and do not sell products past their ‘use by’ date. We use a technical solution to support colleagues to proactively reduce the price of products leading up to their ‘use by’ date. Any product not sold before this date is disposed of and used to produce energy and digestate through anaerobic digestion.

We are also testing a new food stock ordering system for our food stores which will go live in the summer 2026. This includes AI demand forecasting which should more accurately replenish stock to demand.

We have also trialled donating surplus food to FareShare, however we have very low levels of food surplus and this proved to be unsustainable. We are currently looking for alternative solutions.

However, we’re not complacent and our main focus is on reducing the volume of waste we produce – this is a pillar of our sustainability strategy, see Environment Sustainability Strategy.

Q. Could the board please explain to us why you are continually raising your prices and are so expensive? I get that the cost of living is so high, but the co-op is sometimes the only shop in villages and is also used by people who cannot travel anywhere and rely on local shops. Why do you think it is okay to charge the earth to these people who can’t access any other shops? Do you think or feel this is fair?

A. Like all retailers we are seeing significant cost price inflation on the products we sell. We have seen 4,000 cost price increases in the last year and an average rise of 9%. We continue to offer value through promotions, either funded by suppliers or ourselves. As a convenience retailer, our proposition is based on ease of shopping experience, friendly service as well as price - we don't have the buying model of the discount or supermarket retailers, and any profit we make is redistributed locally through investment in services, cashback to members and support for community groups and charities.

Q. I am concerned about the boxes of nuts, crisps and other sundries on the floor in our Dunholme Co-op, as they are a trip hazard and make the aisles even more narrow. What is their purpose? Can they please be got rid of!

A. These baskets were initially trialled in a select number of stores, and with a few tweaks we have now rolled across most of our stores.

One of the key considerations in the placement of these baskets is health and safety. The baskets have been arranged with a gap between them to ensure that access to cabinets remains unobstructed for customers. We will continue to monitor and assess this new initiative to ensure it aligns with our commitment to a safe and efficient shopping environment.

If you have any specific concerns please let us know.

Q. With the popularity of the events at the Castle and the Showground, and the success of the Co-op Live venue in Manchester, would you consider turning the old Debenhams building in Lincoln into a theatre? It would benefit the city and the community as we have no big venues for theatre or music.

A. The old Debenhams building is not part of our property portfolio. Currently, we are focussing our property investment on two areas – healthcare and housing. We have a several projects ongoing currently, including looking at what housing would be appropriate for our former City Square Shopping Centre site in Lincoln city centre.

We have to be mindful of using our resources wisely, and getting an appropriate return on our investment. Currently developing a theatre or music venue wouldn’t fit within those priorities.

Q. I hate seeing empty properties. What percentage of Co-op properties are empty? I moved to Sleaford three and a half years ago and the Riverside prime unit (16 Southgate) is a real eyesore.

A. Currently, around 5% of our properties are unoccupied which is in line with best practice. We don’t like to see our properties empty, and we will be putting focus onto the Riverside.

Q. Are there any plans to update Cherry Wilingham parade? Not the store but the buildings, as these look very dated and scruffy looking.

We own approximately half of the Parade at Cherry Willingham and we're investing in the parts we can influence. Over the last few years we have replaced the roofs within our ownership on the Parade. We're also looking to improve the delivery yard at the back.

Q. Will the Board assure Members and confirm that it has not had any conversations, discussions (formal or otherwise) or given any consideration in relation to Lincolnshire Cooperative Society being demutualised. Nor has there been any equivalent pursuit made or being made with regards to the Society becoming a member of the Cooperative Group.

And

Q. Could I ask for the board's thoughts in the recent merger between Midcounties and Central Co-op? Is the board of Lincolnshire co-op considering merging with any societies?

A. The board can assure members that there are no current plans to change the corporate status or ownership of the society.

Q. Since you appointed the current Chief Executive in March 2023, the society’s trading performance and profitability has declined dramatically. Trading turnover has increased by a modest 5.4%, while trading surplus has over that period declined significantly with an overall collapse in trading surplus of 69.8% at the end of 2022, from £16.6 million to only £5 million as at September 2025, at just 1% of turnover. The society’s operating surplus fell to just £2.5 million vs £16.8 million last year and with our overall net surplus at only £65,000 vs £13 million last year, this is the worst society financial performance in living memory, even allowing for the 53-week period last year. As a direct result, for the first time in living memory also, there is to be No distribution of a final dividend bonus to the membership. Purpose Beyond Profit, may well be a catchy slogan, but if the society carries on in this vein, there will only be purpose, but be no profit! In light of the above, does the Board now think that in hindsight, it made an error in appointing a Chief Executive to lead the most successful consumer co-operative of the last 40 years, who had no proven record of success at this level, or experience of Lincolnshire Co-op’s business model or ethos, and whose most recent record, prior to this, was as Managing Director of Wilko, which fell into administration several months after she joined us? As detailed in the annual report, members of the executive team are well-paid to deliver success and continuing improvement. However, the society’s financial performance since 2023, cannot be described as anything like successful and turnover is static. Since 2023, food turnover, despite a rise in monetary terms, has seen reduction in volume in the region of 9% due to the impact of inflation on food prices. Trading gross profit has remained static for the past 5 years and controllable expenses have continued to rise alarmingly. Rising wage costs and national insurance are management issues to address and mitigate and should not be offered as excuses for the net outcome being a potentially catastrophic fall in trading surplus. This position in which the Society now finds itself is simply not sustainable. So, can the Board give the membership this evening, an absolute assurance that we will see a reversal of this continued trend of deteriorating performance in the next twelve-month period? Should the Board not be able to give this assurance, would you please explain why you should retain the confidence of the members to whom you are accountable?

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Q. I’m sure that you would not disagree that since 2023 our Society has seriously under- performed, would the Board now agree that “Purpose Before Profit 2030” is proving to be nothing more than a 5 year ‘free pass’ given to this underperforming  Executive by the board to spend members’ money with no visible signs of a positive return on investment, whilst at the same time our profitability and members dividend distribution continues to decline?

A. Lincolnshire Co-op is one of the few independent co-ops that has seen sales in growth in the last year. Our strategy, Purpose Beyond Profit 2030, ensures we balance not only the short, middle and long-term, but also the impact on our members, customers and colleagues. The board is very happy with the CEO’s appointment and is confident with hers and the team's ability to make Lincolnshire Co-op stronger for the future.

Q. Would the board please advise members of the level of Return On Investment across the spectrum of the various projects which comprise the £25.8 million capital spend outlined by The Chief Executive in her overview?

A. Out of the £25.8 million spent, a quarter of this was non-returning investment that was made to help the society remain efficient now and in the long term. Three quarters spent was return on investment driven by commercial profit activities. Every month, we have an investment committee where investment performances are reflected on, and strategic plans are implemented. Commercial activities, such as new stores and efficiency measures, command a minimum 6% return on investment. Purpose driven activities, such as healthcare and housing, command a minimum 3% return on investment.

Q. Without reference to agreed formulas or other metrics for calculating executive bonuses, which can and should be changed as and when circumstances dictate, will the Board please explain why, despite the Society’s poor performance, which has resulted in members receiving no final dividend bonus - and I use the term dividend advisedly - those who have ultimately been responsible for this outcome - the 6 members of the Executive Leadership Team, have themselves received a total of one quarter of a million pounds in performance related bonuses, in addition to their collective salary of £1.2 million, with the Chief Executive herself receiving a bonus of £153,000?

And

Q. In light of members not receiving a Christmas bonus, is it appropriate for the CEO to receive a bonus of £153,737?

And

Q. Given the current economic climate and the financial pressures many employees are facing, could you help us understand how the organisation justifies an executive salary increase from £420,019 in 2024 to £434,867 in 2025? This rise is equivalent to, or larger than, some employees’ entire annual income with a new total including bonus and benefits of £650,451. How does this align with our values on fairness and shared responsibility? And what message do you feel this sends to the wider workforce during a period of cost-consciousness?

And

Q. Considering the financial performance of the company this year, resulting in no Christmas bonus for our members, can someone explain the decision-making process that has resulted in six-figure bonuses for leadership figures within the business?

A. Bonuses referred to in the annual report are for the previous financial year. We have made changes to our bonus schemes and colleague are now only eligible for one bonus scheme. Previously, managers were eligible for both. In terms of pay, we are a multi-million-pound organisation with a diverse set of trading operations, and we benchmark our executive salaries against organisations of a similar size and turnover. The CEO pay has dropped from 31 times median pay over the last two-year period to 22 times median pay due to our CEO pay not being increased and our frontline colleague pay rising.

Q. At the 2025 Half Yearly Members' Meeting in response to concerns about the absence of a member dividend bonus this year, after initially skirting to answer the question, when put on the spot, the Chairman indicated that executive bonuses had been substantially reduced (one hour and two minutes approximately into the recording). The written Q&A published on the website clearly says that executive bonuses have been reduced in line with society results. However, those two answers given appear to be at best highly misleading or at worst fundamentally incorrect. Trading surplus has reduced by 53.7% (from £10.8 million to £5 million), yet the bonus for Alison Hands and Laura Dunne has only reduced by 21% and the bonus for Robert Allen has only reduced by 24%. Why have executive bonuses not been reduced in line with the reduction in trading surplus? Does the Board accept that Members have shouldered the impact of reduced profits far more significantly than the Executive Leadership Team? Members have lost all their cashback bonus, which in recent years has been at 80% of cashback earned. However, the ELT bonuses for those present in the 2024 and 2025 years have only been reduced by 21% and 24%. This is a reduction far lower than the 80% that Members have had to endure. When the overall renumeration is taken into account, the ELT have barely seen any impact, Alison Hands has seen a 3.6% drop in total renumeration, Robert Allen has seen a 1.3% drop in total renumeration, whereas Laura Dunne has seen a 16% increase in total renumeration. In fact, as 2024 was a 53-week year and 2025 was a 52-week year, a 1.9% reduction would represent a standstill position between 2024 and 2025 anyway.

A. The bonuses in the annual report are for the previous financial year trading surplus, reduced by 12% from 12.1 million to 10.3 million. The Executive bonus reduction of 21% to 24% reflects this. Members were paid a Christmas bonus for that same period of the last financial year, and the total distributed to members was three million, which was 60% of the profit made. Bonuses for frontline staff have been locked in for next year but are not confirmed for managers and senior managers.

Q. What proportion of revenue and what proportion of profits come from retail and how much comes from the property portfolio?

A. Property is an important part of our business and represents around 4% of sales but 53% of profit, therefore our largest area of profit. The balance of 47% is across retail which is our food property business. Therefore, property gives us the ability to diversify risk and deliver on our purpose.

Q. Has the company recovered from the cyber-attack?

And

Q. Have you fully recovered from the cyberattack?

A. When Co-op Group’s systems were attacked, we didn’t have supply for several weeks, as it's our main supplier. Lincolnshire Co-op is an independent Co-op, and our systems were not affected by this.

We’re continuing to recover, but from a product perspective, and we have got our products back into stores. While our members are continuing to come back and shop with us, we’re struggling to get our other customers back who found other retailers to shop with.

The cyberattack showed why it’s important we continue to invest in our I.T systems and that why we’ve been investing the money that we have. Co-op Group also took positive and affirmative action and began supporting a charity that find young children online who are being groomed to become hackers, before they become criminals.

Q. Would it be possible to get some comment from the board as to the impact of the fire at the Nettleham store, and associated units, in terms of the organisation and the financials, please?

A. The full impact of the fire at the Nettleham Food Store is still part of the overall ongoing insurance claim and therefore will not be fully known for some time. However, so far we have received almost £1m in insurance payments to cover costs including the roof replacement and refurbishment of both the store and neighbouring commercial properties

During the closure, we invested in a pop-up shop, which provided the community with essentials while repairs took place, and ran a free replacement coach service, so that those who needed to could access services in Welton in the meantime. We also worked with our tenants and supported them in finding temporary premises while work completed.

Q. How safe and welcome do customers feel in store? Do we have KPIs or metrics to continue to ensure stores are welcoming for all of our diverse members?

A. According to our Your Say survey which focuses on our food stores, 86% of customers felt safe in our stores over the last year. We are always open to feedback on ways we can improve this.

Q. Why are the members not being asked to approve the annual accounts?

A. The Society Rules require that accounts are prepared and presented to the Members for each financial year. There is no requirement for Members to formally approve the accounts.

Q. Why are our auditors not a Lincolnshire company?

The society accounts are significant in scale and complexity, covering multiple retail sectors, a large property portfolio and large pension scheme. This scale and complexity requires a large audit firm with suitable expertise and resource to carry out a rigorous audit and provide assurance. To access this audit expertise we have to go outside of Lincolnshire.

Q. Does our unique cooperative structure command any UK government grants to empower the group? Are there things members can do to lobby government to increase such opportunities in the future?

A. Part of the current government’s manifesto was to double the size of the co-operative and mutuals sector in the UK, and there is currently a live call for evidence on business support for co-operatives and non-financial mutuals open until 18th February 2026. The newly formed Mutual and Co-operative Sector Business Council will take the insights from this to develop a plan to address the issues facing the growth of the sector. See Call for evidence on business support for co-operatives and non-financial mutuals - GOV.UK

On a local level, we are planning to work with Neighbourhood Boards to maximise the impact from the government Pride in Place funding across our trading area. See Pride in Place Programme prospectus - GOV.UK

Any support members can offer to the social economy at a national or local level would be gratefully received.

Q. Will the Chief Executive stop referring to EBITDA? This ignores the effect of decisions taken by managers - such as capex, depreciation etc. Trading and Operating Profit is the true measure of performance.

A. EBITDA is widely used as a profit measure because it focusses on underlying performance and cash generation. The depreciation and amortisation associated with capex spend can distort profit, as the timing of the accounting charge often does not align with the economic benefit generated.

EBITDA removes this distortion, providing visibility on core operational results. EBITDA is also a key metric monitored by our banks, and influences borrowing arrangements. EBITDA isn’t the only profit measure, and you can see other metrics such as Trading Surplus referenced in our annual report.

Q. Can I ask if the Board / Directors received a bonus please?

A. No Board Directors received a bonus in the financial year.

Q. How many stores and branches have you refreshed this year?

A. Over £4m has been invested into 31 outlets across food, funeral, pharmacy, travel and post offices. As part of this important work, we have also reviewed formats to ensure that they meet community needs. This represents an investment in our long-term sustainability.

Q. As the Labour Party have increased taxes and costs for the public and companies such as the Co-op, when will you stop supporting the Labour Party?

A. Lincolnshire Co-op is a politically neutral society and does not have any affiliation with any political parties. We will work collaboratively with elected representatives for the benefit of our communities, where appropriate to do so.

Q. You have explained that executive bonuses are reported 12 months in arrears and not the financial period in question? So, can you tell us how much exactly the ELT did earn for the year ended 2025?

A. Our latest annual report covers from September 2024 to September 2025. Our next annual report will cover the period from September 2025 to September 2026, and this will also include details around Executive Leadership Team pay.