Half Yearly Meeting 2025 - Q&As

Q: In view of the cyber attack on the Co-op Group, what disaster recovery plans does the Society have in place and if these are in place why has the disruption to food store supplies lasted so long? What will the financial impact be on the Society and is the Society looking to recover losses?

The Co-op Group was subject to a malicious cyber attack in May where hackers made sustained attempts to access the Group’s systems.

We are an independent co-op and have separate membership systems which were not affected by this attack.

However, the Group took proactive steps to block the criminals and this meant a number of key systems were taken offline. Because we share a buying group with the Co-op Group, this impacted on the number of deliveries from the buying group we were receiving into our food stores.

We have a crisis management procedure in place and a team of experts came together to shape our society’s response, receiving regular updates from the Co-op Group, whose colleagues were working day and night to recover.

Our teams also made a mammoth effort to mitigate the impact of this major incident on our stores, members and customers.

In just a few days, we’d worked with our existing supplier contacts and Love Local producers to boost supply, as well as on-boarding new suppliers. Food store colleagues came in especially or stayed late to accept deliveries. Our team at Gadsby’s continued to work hard to supply our shops with fresh bread.

During the disruption, we shared regular updates on our website. There was also signage in stores alerting customers and members to the possibility of shortages, apologising for any inconvenience.

Co-op Group gradually started to bring its systems back online in mid-May. From that point we saw a gradual increase in deliveries into our food stores, supplemented with our own supply.

However, the supply chain is a complex one and it does take a significant period to recover from disruption, especially considering the operational and technical actions the Group had to undertake to thwart the criminals – for example, there was a period when the Co-op Group were unable to place orders with suppliers.

With the Group’s support, and the continuing actions of our colleagues, we are working towards more normal levels of stock, though we appreciate we are not quite there yet in some stores.

The full financial impact of the cyber incident has yet to be determined, however we are considering the avenues available to recover any losses.

Our colleagues have coped with this major incident brilliantly and have really come together to support each other and their communities. The Board are sincerely grateful to all of them.

I know that our colleagues have also been appreciative of the support they have had from members and customers – and on behalf of the Board, I’d like to thank all of you for your patience and for bearing with us.

Q: Has Lincolnshire Co-op been fairly treated as a wholesale customer with the distribution of food supplies by the Co-op Group and will you be urgently reviewing its entire reliance upon the Co-op Group distribution?

We were in regular contact with the Co-op Group throughout this time, and our colleagues could see firsthand the efforts that were being made to protect the Group’s systems and to maintain service to its partners.

As an independent co-op, we want to ensure we can provide choice and value to our members and customers, and we believe the best way of doing this is to be part of the Co-op Buying Group and so we can make the most of our partnership, including efficiencies of scale.

Q: Which extra steps have been taken / are being taken to minimise/prevent the risk of cyber-attacks and hacking of members’ details and causing the upheaval we’re experiencing currently?

We have regular reviews of our systems and strict policies in place to help manage the risk of cyber-attack.

Colleagues across the business are given regular cyber security training and we are revisiting this. Considering recent events in the wider retail space, we have recently undertaken several proactive colleague briefings.

We’ve also been getting insight from the British Retail Consortium and our close relationship and open communication with Co-op Group means we have been able to benefit from any learnings following the cyber-attack.

Q: Can you reassure us that Lincolnshire Co-op's values remain aligned with supporting and investing in the existing workforce, rather than replacing current staff with external hires?

Lincolnshire Co-op is a major employer in the region, with around 3,000 colleagues in a diverse range of businesses as well as a team in the Support Centre.

Developing people is part of our approach and we are an Investors in People Platinum employer. We run various programmes aiming to inspire colleagues to get to the next level of their career and we also offer workplace coaching and apprenticeships.

These programmes and associated support have helped numerous colleagues to be promoted to our Leadership Team and management level teams in areas including HR, Legal and Compliance, Marketing and Membership, Food, Travel, Funeral, Pharmacy and many more.

However, we also recognise that as a large-scale business it is important to bring in talent externally who can bring a different perspective and experience. We have attracted people from a wide range of organisations including major supermarkets and convenience retailers like Asda, Morrisons and Nisa as well as other businesses including Wilko, Boots, MediVet, Vets for Pets, Amazon and The Works, alongside those who have joined us from local businesses, local authorities and many other employers.

Q: Will the colleagues get a profit share bonus this year?

Last year we shared a colleague profit share bonus of 47% of a weekly wage, based on the financial year to September 2025.

The Board of Directors approves the colleague bonus – which is a discretionary benefit – based on our trading surplus. The colleague bonus is a proportion of the surplus.

Last year, we were able to maintain a colleague bonus thanks to our solid trading result, but as our surplus had decreased significantly, we had to reduce the percentage awarded to reflect that.

We hope to be able to pay a colleague profit share bonus this year however, with the investments we need to make in the society and costs continuing to rise we will need to keep the level under careful review.

Q: Have executive bonuses been adjusted in line with reduced profits and the absence of a member dividend bonus this year?

Executive remuneration is reviewed annually by the Remuneration Committee against comparable organisations. Bonuses are performance-linked and have been reduced this year in line with society results. The level of bonus will continue to reflect the results in future years and will be reduced if trading results dictate.

Q: The CMA recently found the Co-op guilty of preventing competition by other stores opening near them. How can the directors claim that they had no knowledge of this practice and what steps are being taken to rectify this?

The CMA breaches referred to are related to the Co-op Group - Co-op re-writes anti-competitive land agreements - GOV.UK

The Co-op Group is a separate organisation to Lincolnshire Co-op. We are independent, with our own Board of Directors, management structure and membership scheme. Lincolnshire Co-op has not been found to have breached any CMA regulations, nor is it subject to the Controlled Land Order that featured in this particular case.

Q: The Co-op bank branch in Lincoln closed several years ago which is very inconvenient for Co-op bank members. It is a good reason to seriously consider switching bank accounts. Are there any plans to restore a Co-op bank in Lincoln?

The Co-op Bank is a separate organisation to Lincolnshire Co-op and has no links to us. We are an independent co-op and our businesses do not include banking.

Is the funerals and crematorium sector still a strategic priority for Lincolnshire Co-op?

Our funerals and crematorium business remains a key strategic focus for us. We are investing over £1 million to in a new Horncastle Funeral Branch, where we’re converting a building we purchased during the pandemic and making it truly fit for purpose for our team and clients. We’re also working on a care strategy for the business.

What opportunities do you offer to young people who may be interested in following a career path with Lincolnshire Co-op? What possible career and training pathways are available?

We have just set up a new careers team whose focus is to provide a comprehensive careers service to all of our colleagues as well as schools, colleges and a range of other organisations.

We are in the final stages of formulating the plan but our aspirations include exploring work experience work placements, T-Level placements, internships and graduate schemes. There will be several entry routes in a variety of departments across the business.

We will continue to build on our relationships with education settings, primary and secondary and further education, including through guest speaker slots with members of our wider team to showcase the careers available.

We currently have over 70 apprentices working across our business, and we want to explore more apprenticeship vacancies at entry level which will link to the work experience we will provide.

We are part of the East Midlands Apprenticeship Ambassador Network as well as being a Careers and Enterprise Hub Cornerstones Employer.

Q: Considering recent transgender rights legislation, will more unisex toilets be provided in your stores? And will more accessible facilities such as hoists be provided for people with severe disabilities?

Most of our outlets don't have customer toilet facilities for a range of reasons including space, security and health and safety.

Where facilities exist, they are generally unisex. We will look to undertake a review of this provision going forward, taking into account the feedback about unisex facilities and accessibility improvements.

Q: Can we go back to using dividend instead of cashback?

While the term dividend has historical significance, research shows that cashback resonates better with a wider range of potential members, including younger people. This supports our goal of attracting new members and strengthening the society for the long-term.

Q: I live in Lincolnshire but work in Cambridgeshire. Why can’t I use my dividend card in Cambridgeshire? Would a national card be better?

Currently, each co-op operates its own membership scheme and card, which cannot be used across different co-op societies. We understand this can be frustrating and we are actively exploring technological solutions to enable cross-society card usage. It is important to note that each co-op is an independent society with its own board and member benefits, which vary between societies.

Q: Why were the annual 10% member discount vouchers and the Christmas 10% vouchers discontinued following the reduced dividend bonus last year?

Due to reduced profit levels, we have had to reassess the benefits we offer to members. Surveys indicate that members most value the ongoing 1% cashback benefit, which we are prioritising. Consequently, the annual and Christmas discount vouchers have been paused and we will review these decisions as financial circumstances allow.

Q: Will the membership card on the app be integrated with Apple Wallet and Google Wallet?

We will soon be undertaking work on the Lincolnshire Co-op dividend card app, which will support integration with both Apple Wallet and Google Wallet to enhance member convenience.

Q: Will the discontinuation of the Christmas dividend cashback bonus lead to customer loss?

We are committed to being honest and transparent with our customers about what is happening within the business. However, we will make sure there are plenty of other reasons why people visit Lincolnshire Co-op which is not just about cashback.

Q: Have you ended the quarterly magazines?

We are no longer publishing a members’ magazine but we do share a variety of content on our social media channels (Facebook, Instagram and TikTok), have a selection of recipes on our website and send regular emails to our members with offers and news.

Q: Will you include fresh, healthy options such as fruit and vegetables in your member discounted foods?

We are working on introducing supplier-funded member pricing on certain products in our food stores, alongside our ongoing cashback benefit. What is in those offers will depend on the suppliers that want to work with our buying group but we hope there will be some healthy options in the mix.

Q: What is the purpose of this meeting?
This meeting provides an opportunity for members, as part-owners of the co-op, to engage with Lincolnshire Co-op. Members have the right to express their views and ask questions regardless of their age. Junior membership begins at age 13, voting rights commence at 16, and eligibility for board membership starts at 18. This forum is designed to ensure all members can participate in the governance of the Co-op.

Q: Why are meetings held far from the centre of the customer base?

As our trading area grows, defining a central location is challenging. We do run numerous services in Nottinghamshire, and have opened new stores in the area, which has led to Center Parcs being selected as a venue. It has proved popular and has attracted members who haven’t attended our meetings before. We continue to evaluate where we hold our events and meetings.

Q: What is being done to actively recruit new members?

Since September, over 17,000 new members have joined. However, accounts are closed if unused for three years, which affects membership numbers. Our efforts focus on both recruitment and retention, leveraging our ongoing cashback benefit, our app and other forms of engagement. We’d welcome member input into how we can attract more new members.

Q: Is the society collaborating with the Woodcraft Folk youth organisation?

No formal collaboration is currently in place. However, we are open to exploring partnership opportunities.

Q: Can the free fruit offering for children be expanded beyond apples, bananas, and oranges?

We welcome suggestions on expanding the free fruit range and we will look at how we could introduce new options.

Q: Why is there such a difference on the price reductions levied on short-dated items between stores? For example, the discounts placed on items at the Skellingthorpe store is far less than those at the nearby Birchwood and Skellingthorpe Road stores?

For our reduced-to-clear items we use a dynamic markdown system – the price generated for a short-dated markdown will be dependent on both time of day and the amount of stock left. So, products will tend to be cheaper in the later part of the day as we attempt to clear the product for disposal. The price may well differ if one store has a larger quantity of stock left than another. Our aim is always to sell all short- dated stock by the end of its shelf life rather than dispose of it.

Q: Lincolnshire Co-op owns Gadsby's. So why do our food stores now charge £1.80 for two of their pineapple creams when other Co-op societies that stock them have them at £2.30 for four? The pineapple creams are also now in the fridges. There's no indication of the need to refrigerate on the packaging and the 'best before' dates are such that suggests that they don’t need to be refrigerated.

Gadsby’s products are ranged in a number of independent Co-op societies stores as well as Lincolnshire Co-op stores. Gadsby’s currently produce both two-pack pineapple creams and four-pack pineapple creams.

After reviewing the product’s performance in Lincolnshire Co-op stores, we have switched to two-pack pineapple creams after assessing demand and feedback. We have also started displaying them in fridge for the same reason, though they can also be kept at ambient temperature.

When producing products for wholesale, we endeavour to get the best deal for Lincolnshire Co-op but the price that products are sold at in other retailers is set by them due to competition law.

Q: Are there plans to extend the vegetarian product range?

Yes, our commercial team works closely with our buying group colleagues on category reviews. Customer feedback is actively incorporated in these reviews, and expanding the vegetarian range is part of ongoing development.

Q: Why are prices at my local store often incorrect, with price tickets not matching till charges?

We apologise for these discrepancies which should not occur. Currently, pricing updates are managed manually, increasing the risk of errors. We are implementing digital shelf-edge labels to enable accurate, real-time price updates, which will reduce errors significantly.

Q: Why are not all colleagues wearing body cameras at my local store?

Body cameras are provided in all food and pharmacy stores, with the goal that at least two colleagues wear them per shift to deter incidents. Wearing body cameras is voluntary, but all colleagues receive training on their importance. We have invested significantly in this safety measure and expect increased usage moving forward.

Q: Why is there a shift in priority within the pharmacy area of the society?

The impact that NHS funding cuts have had on community pharmacy has been well-publicised.

The NHS has been clear that it wants pharmacies to focus on service provision and not just prescription fulfilment.  To help us do that, we have made a number of changes to the way we work.

We have invested in our central fill model, where around half of our pharmacies have repeat prescriptions dispensed from a central point which has released capacity for our teams to provide more services such as Pharmacy First.

We have also launched a number of private services like travel vaccines and healthy heart checks rather than relying on NHS funded products.

A recent large-scale project has been a review of the products we stock over the counter in our pharmacies to improve our offer and ensure what we have meets the needs of a wider range of people in our communities.

We are also currently working on an exciting plan to create a new-style health hub which will be a one stop shop for health and wellbeing – providing a wide-range of pharmaceutical services but also working with local NHS providers. This work is taking place in Birchwood, in Lincoln, and we’re hoping to see it open later this year.

Caring for health and wellbeing is an important part of our Purpose Beyond Profit strategy and we are also in the process of finalising a care strategy which will help us shape our future direction.

Q: Why have the chemists stopped selling Stute Jams?

In a bid to improve the range of products we have in our pharmacies, we have reviewed what we stock over the counter in our pharmacies to ensure what we have meets the needs of a wider range of people in our communities.

This has been a large-scale project and may have led to some disruption in your local branch or led to products that customers have been used to buying not being available anymore.

We do stock 'no added sugar' jams in our food stores and in terms of the products we sell in our pharmacies, we are now reviewing and analysing the data to see where we need to make any changes to what’s on offer.

Q: Are there plans to introduce a blister pack recycling service similar to Boots and Superdrug?

There’s a lot of plastic waste that comes with providing pill-based prescriptions to our patients and we are looking at our options on how we can work with a recycling company to support a recycling service.

Q: A local co-op pharmacy in Lincoln closes for one hour in the middle of the day, despite having high staff levels. Would it not be possible for the store to remain open all day?

Pharmacies are incredibly busy and high-pressure environments so it’s essential for the wellbeing of our teams that they take a break during the day. Due to regulatory requirements, if the pharmacist is on break, we cannot continue to operate the service. Therefore, it is more efficient to close the pharmacy during that time so all staff can take their break.

Q: When will text notifications for ready prescriptions be reinstated at Birchwood Pharmacy?

Birchwood Pharmacy is one of 22 pharmacies currently using centralised dispensing. Unfortunately, the existing text messaging system is not compatible with centralised dispensing. We are currently reviewing our options for improving customer communication and hope to resolve this issue in the coming months.