United Co-operatives merger plans backed

United Co-operatives logo

Rochdale based United Co-operatives, which has extensive interests across Yorkshire, has announced that another coming together with a Yorkshire co-operative society is on the cards following the recommendation of the Board of Leeds Co-operative Society to its members that it should merge with United Co-operatives.

Last month members of Sheffield Co-operative Society voted to join United from the end of January.

Announcing the decision by the Leeds Society Board, David Schofield, President of the Society, declared, “Leeds Society’s Board is committed to the continuation and development of a strong co-operative presence in the city.  The Society has been successful over the last few years, both in terms of improved financial performance and a growth in members’ democratic participation. However, we now face a number of major new challenges, including increasing competition from the major food retailers, increased operating costs, especially on the energy front, along with significant changes in some of our key markets, most notably in the travel trade.  Against that background, we believe that the best way to build further upon our achievements is through a merger from strength with United Co-operatives.

“Such a merger will bring significant benefits to our members, employees and local communities. The enlarged society would be committed to developing the co-operative presence in Leeds in a more effective way than Leeds Society can on its own.”

Welcoming the proposed merger, United’s Chief Executive, Peter Marks, said: “This is great news for the customers of both societies.  Leeds is a good, strong society with excellent assets including its employees.  The proposed merger would result in significant further investment in Co-op stores throughout the area.  This would lead to better stores, better ranges and better prices for Co-op customers.  It would also be good news for Co-op staff, with even better career opportunities developing throughout the enlarged business.”

A meeting of Leeds Society members will take place on December 11. If two thirds of those voting are in favour of the merger, a confirmatory meeting will be held on January 8 next year, with the merger, if approved, becoming effective later that month.

Leeds Co-operative Society has an annual turnover of £76 million, with around 700 employees in more than 60 food, travel, funeral and optical businesses.  It has 23,000 members.

United Co-operatives has a turnover of more than £2 billion and 16,000 employees. Its five major businesses are, Food convenience stores, Travel Agencies, Pharmacies and Funerals, as well as the Bradford-based, Sunwin Motor Group.