The Co-op is grappling with serious allegations of a toxic workplace culture at the executive level, as senior staff voice concerns over a climate of fear and intimidation. A letter addressed to board members, which has come to light, reveals that senior managers feel increasingly alienated and reluctant to express their views, particularly in the presence of CEO Shirine Khoury-Haq. The fallout from these issues has reportedly led to significant operational challenges, including declining profits and rising food waste.
Allegations of Fear and Intimidation
The internal correspondence, shared with the BBC, outlines a troubling atmosphere where senior employees are deterred from raising concerns about the company’s strategic direction. The letter suggests that leadership behaviours have severely undermined the Co-op’s historic commitment to ethical practices. One manager described the environment as so stifling that speaking out equates to risking one’s career: “You learn to look at your shoes. Nobody can speak their mind in this business – anyone who does has their card marked.”
Several senior managers corroborated the sentiments expressed in the letter, affirming feelings of intimidation that have circulated since the company’s restructuring initiatives commenced.
Declining Performance and Leadership Decisions
The Co-op, which has a storied history dating back to 1844, has been enduring a slump in sales and operational performance, a trend that some attribute to leadership decisions made after a major cyber-attack last year. The attack, which disrupted trading for three weeks and cost the company £206 million in lost sales, appears to have precipitated hasty decisions about inventory replenishment. Managers highlighted instances where inappropriate products were used to fill shelves, leading to decreased customer satisfaction and increased waste.
Despite the adverse impact of the cyber-attack, the Co-op has pressed on with plans to merge its retail, wholesale, and third-party buying divisions into a new entity called Group Commercial and Logistics (GCL). This move has been controversial, with many experienced staff warning that it would complicate supplier relationships and disrupt operations. The beleaguered organisation has now seen a drop in market share and continual declines in monthly sales since July 2025.
Departure of Key Personnel
The fallout from these ongoing issues has led to a wave of senior departures, with at least four high-ranking executives leaving in the past six months. Jerome Saint-Marc, Sinead Bell, and most recently, commercial director Rebecca Oliver-Mooney, are among those who have exited. The letter to the board indicates a widespread feeling that key decisions have been poorly managed and inadequately communicated, resulting in a lack of confidence in the current leadership.
While the Co-op has maintained that it remains in a solid financial position — citing reduced debt and substantial cash reserves — the internal strife raises questions about its long-term viability. A spokesperson insisted that decision-making processes incorporate a range of perspectives, though many senior staff assert that their voices are not being heard.
Morale and Culture at a Breaking Point
The discontent among staff is palpable. One source described the Co-op as having been subjected to a “wrecking ball,” leading to a once-collaborative culture now described as “toxic.” Employees are reportedly demoralised, questioning the lack of action from senior management to address the situation. Another insider remarked on the disconnect between management assurances and the reality facing staff: “It’s like corporate gaslighting.”
The Co-op’s founding principles emphasise ethical business practices and a supportive work environment. However, employees now feel that these values are not being upheld, leading to a sense of betrayal among those who joined the organisation with high ideals.
Why it Matters
The situation at the Co-op underscores the critical importance of workplace culture in sustaining an organisation’s health and profitability. As a member-owned cooperative, the Co-op’s commitment to ethical practices is fundamental to its identity. The concerns raised by senior staff could have far-reaching implications, not only for employee morale but also for customer loyalty and financial performance. If the Co-op fails to address these issues decisively, it risks alienating its workforce and undermining its legacy as a leader in ethical business practices.