The Co-op has instructed staff to increase the visibility and promotion of vapes in its stores in a bid to recover from major financial losses caused by a cyber-attack earlier this year, according to internal documents.
The retailer’s “Powering Up: Focus Sprint” plan outlines efforts to recapture about £1m in missing weekly sales and 100,000 lost transactions following the April cyber incident that disrupted supply chains and left shelves empty. The strategy includes new in-store vape displays, eye-catching advertisements, and a broader range of vaping products and nicotine pouches.
While the Co-op insists its approach complies with UK law, some employees have questioned whether it conflicts with the company’s self-described image as an “ethical” retailer that “puts principles before profit.”
A staff member told The Guardian that the shift “goes against everything we’ve done until now,” criticising the company for “exploiting a known health problem to make a profit.”
The move also comes amid rising concerns over youth vaping in the UK. Public health experts, including England’s chief medical officer, Prof Chris Whitty, have warned that while vaping is safer than smoking, it poses risks to non-smokers and children.
The government’s forthcoming tobacco and vapes bill aims to ban vape advertising and sponsorship, limit flavours and packaging, and restrict how such products are displayed.
A Co-op spokesperson said the company remains committed to “ethical values and responsible retailing,” adding that vape sales are “fully compliant with all UK legislation and recognised as a route to smoking cessation.”
The cyber-attack that triggered the policy caused severe disruption across the Co-op’s operations — from its 2,000 grocery stores to its 800 funeral homes — wiping more than £200m off sales and leaving the group facing an estimated £120m hit to annual profits.
