The Co-op has instructed staff to increase the visibility and promotion of vapes in its stores as part of a drive to recover from a major cyber-attack that caused a sharp fall in sales.
An internal document titled Powering Up: Focus Sprint: Cigs, Tobacco and Vape outlines plans to boost sales by introducing larger vape displays, more advertising, and an expanded product range across its 2,000 UK grocery outlets. The move aims to plug an estimated £1m per week in lost sales and reverse a decline of about 100,000 weekly transactions since the April hack.
The document says at least 40% of the losses are due to customers changing their shopping habits after the cyber incident, buying cigarettes, tobacco, and vapes elsewhere.
While the Co-op’s strategy complies with current UK laws and health guidelines, some employees have questioned whether it aligns with the company’s long-standing ethical image. The retailer describes itself as putting “principles before profit” and as a “leader for social goals and community-led programmes.”
A staff member told The Guardian that the new focus on vapes undermines those values: “They’ve always promoted ethical shopping – that you might pay more because they do things right. This strategy goes against everything we’ve stood for.”
The timing also coincides with growing concern about youth vaping, as rates among under-18s rise and products with candy-like flavours attract younger consumers. England’s chief medical officer, Prof Chris Whitty, has repeatedly warned: “If you smoke, vaping is much safer; if you don’t smoke, don’t vape.”
A government bill now moving through parliament will soon ban vape advertising and sponsorship, while restricting flavours, packaging, and store displays.
In response, a Co-op spokesperson said the retailer remains committed to ethical values and that vape sales are “fully compliant with all UK legislation and government guidelines,” describing them as “a successful route to smoking cessation.”
The company is still recovering from the cyber-attack, which forced major IT shutdowns, disrupted funerals, and caused more than £200m in lost sales. The financial fallout is expected to cost the group around £120m in annual profits.
