The Co-op has instructed staff to increase the visibility and promotion of vape products in its stores as part of a recovery plan following a major cyber-attack that severely affected sales earlier this year.
An internal document titled “Powering Up: Focus Sprint: Cigs, Tobacco and Vape”, seen by The Guardian, reveals that the retailer is rolling out new vape displays, additional advertising, and expanding its range of vape and nicotine pouch products across its more than 2,000 UK grocery stores.
According to the report, the Co-op estimates it is losing around £1m in weekly sales and has seen 100,000 fewer transactions since the April cyber incident, which caused severe supply chain disruption and left shelves empty for weeks. The document states:
“We know at least 40% of this is customers forming a new habit, shopping elsewhere as they wouldn’t go without their cigarettes, tobacco or vapes.”
Although the strategy complies with all UK laws and health guidelines, some employees have voiced concerns that promoting vapes contradicts the company’s reputation as an “ethical” and socially responsible retailer. The Co-op’s brand identity emphasises “principles before profit” and leadership in community-focused business practices.
One staff member told The Guardian:
“The Co-op has always been about ethical shopping. This decision to exploit a known health problem for profit goes against the values the Co-op was built on.”
The move also comes amid growing concern over youth vaping in the UK. Health experts, including England’s chief medical officer, Prof Chris Whitty, have warned about the rising number of under-18s using vapes, fuelled by colourful packaging and sweet flavours such as bubblegum and candy floss.
A government tobacco and vapes bill currently moving through parliament aims to ban vape advertising and sponsorship, while restricting flavours, packaging, and in-store displays.
A Co-op spokesperson defended the company’s approach, saying:
“The sale of vape products in our stores is fully compliant with UK legislation and government guidance. Vapes play a recognised role in smoking cessation.”
They added that the business remains committed to ethical values, but must also focus on “powering up all aspects of our stores” to recover from the £200m loss in sales caused by the cyber-attack, which is expected to cut £120m from annual profits.
The attack disrupted operations across Co-op’s retail and funeral services, forcing parts of the business to revert to paper systems and halting digital services. The new sales strategy is part of a broader “Power Up” initiative designed to stabilise finances and rebuild customer loyalty.
