Major supermarket chain at risk of closing 34 stores after ‘struggling financially' in major blow to shoppers
They claimed their problems had been 'exacerbated' by increases in National Insurance contributions and the living wage
SHOPS FOR THE CHOP Major supermarket chain at risk of closing 34 stores after 'struggling financially' in major blow to shoppers
Click to share on X/Twitter (Opens in new window)
Click to share on Facebook (Opens in new window)
A POPULAR supermarket chain could be shuttering 34 stores after "struggling financially".
Shoppers were devastated to hear a significant number of Co-op branches are at risk of closing.
Sign up for Scottish Sun
newsletter
Sign up
1
More than 34 Co-op stores could be at risk of closing down
Credit: Getty
There are also nine Co-op funeral homes that could be forced to pull the shutters down.
The string of closures would hit Essex highstreets, if a merger is not approved imminently.
A spokesperson from Chelmsford Star Co-op confirmed the news, as reported by Essex Live.
Locations at risk would include stores in Braintree, Chelmsford, Basildon, Thurrock and Southend among other locations, as well as two travel agencies.
The society also operates branches in George Yard Shopping Centre in Braintree and Moulsham Street in Chelmsford.
Chelmsford Star Co-op said it is "struggling financially" and needs to merge with the larger Central Co-op society.
They claimed their issues have been "exacerbated" by increases in National Insurance contributions and the living wage.
It comes as the two Quadrant stores are set to shutter in October later this year, with bosses blaming "long-term and increasing financial loss".
Neither site has fetched a profit since 2008.
Plans or a merger should be decided at meetings on July 16 and August 5.
However, one member of Chelmsford Star Co-op, feared a merger would still see smaller store closures in villages and housing estates.
They said: "I believe that there are other options, including the disposal of department stores, the sale of the quadrant department stores building in Chelmsford and the use of that to reinvest in the business."
Chelmsford Star Co-op said there are no confirmed plans in place.
A spokesman said: "As with any business integration, there will be a period of transition where the combined Society will review how best to organise itself to meet the needs of its members and communities.
"While no decisions have been made at this early stage, we can confirm there are no planned closures of Chelmsford Star food stores, funeral homes or travel agencies as part of the proposed transfer.
"Some support functions may evolve over time to ensure the organisation is fit for purpose and sustainable long-term, but this would be done with care, transparency and engagement with colleagues, members and unions. Importantly, the focus of both Societies is to safeguard as many roles and services as possible."
Meanwhile Chelmsford Star execs dubbed a potential merger an "incredibly exciting moment".
Chief executives of Chelmsford Star and Central Co-ops, Barry Wood and Debbie Robinson, said: "This is an incredibly exciting moment for co-operation. During the UN International Year of Co-operatives, we have a shared vision to be a leading force in the co-operative movement, realising the transformative impact that co-operatives have on economies, communities and individuals.
"In an increasingly competitive marketplace, we believe that by harnessing our shared values, we will build a stronger and more secure society.
"We welcome the proposed transfer and invite members to support this important moment which will deliver a future that continues to put members, colleagues and communities at the heart of everything we do.'
Tony Price and Elaine Dean, presidents of Chelmsford Star and Central Co-op, added: 'Central Co-op and Chelmsford Star Co-operative are committed to putting the interests of our members first and supporting the communities where we trade.
"The transfer will ensure that all members continue to have an important voice as part of a stronger, more secure Society - ready to serve them for many more years to come.
"Both Boards are supportive of this transfer of engagements and the exciting opportunities that it presents.'
OTHER CO-OP NEWS
This comes as Co-op is rolling out a major change to stores across the country.
The supermarket giant is replacing paper product tags with electronic labels throughout its whole estate over the coming months.
The retailer has already made the change in 340 branches but will roll out the tags more widely.
The chain said 1,500 stores will have the labels by the end of the year and will be rolled out across all its nearly 2,400 by the end of 2026.
We have asked Co-op if all labels will be replaced with electronic ones in stores and will update this story when we've heard back.
The electronic labels are designed and created by VusionGroup, which also works with Asda.
Steven Logue, Co-op's head of operations, said: 'With convenience at the heart of everything we do Co-op is committed to continually exploring innovative technology that can improve how we operate."
Co-op said the new electronic labels will show allergen and nutritional information and products' country of origin, as well as deals and savings.
And, Co-op was one of a number of retailers hit by a cyber attack recently which saw supermarket stock and customer data affected.
However, by May 14, the supermarket chain confirmed it was in a "recovery phase" and ready to turn online orders back on.
Customers had been complaining of shortages of fresh produce, ready meals, yoghurts and confectionery since the incident began at the end of April.
The attack also pushed contactless card payments offline in nearly one in 10 stores, forcing customers to pay with cash or enter their PINs at the till.
The retailer also confirmed customers' private details were stolen during the attack after its IT systems were compromised.
Some customers' names, contact information and dates of birth were exposed, however passwords, credit card details and transaction information were not.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scottish Sun
39 minutes ago
- Scottish Sun
How to legally pay less tax on your income as millions hit with stealth taxes
MILLIONS of workers will be hit with higher tax bills in the coming years as frozen thresholds will force them to hand over more of their earnings to the taxman. Around 4.1million extra workers will be dragged into higher tax bands by 2027-28, according to the most recent figures from the Office for Budget Responsibility. 1 Millions of people will be dragged into paying more tax in the coming years Credit: Getty Income tax thresholds are frozen until April 2028, which means that more people could find themselves pushed into higher tax bands through a concept called fiscal drag. The higher rate tax band is frozen at £50,270, which means any earnings over this amount are taxed at 40%. Meanwhile, the additional tax band is currently fixed at £125,140, beyond which any earnings are taxed at 45%. But there are things you can do to prevent a surprise tax bill from landing on your doorstep. Here we explain how you can reduce your tax bill and avoid the tax trap. Apply for tax relief One way to reduce your tax bill is to claim tax relief. You can claim the relief on your job expenses, which means you will take home more of your income and pay less tax. To be eligible you must use your own money for things that you need to buy for your job and you only use for work. You can claim for items including working from home, uniforms, work clothes, tools, vehicles you use for work, travel and overnight costs. You cannot claim tax relief if your employer gives you all the money back or alternative equipment. You will get the relief based on what you have spent and the rate at which you pay tax. For example, if you claim £60 of tax relief and usually pay tax at 20% then you will get £12 back. The exact amount you could get depends on what you are claiming for. For more information and to make a claim visit How do I check my tax code? YOU can check your tax code on your personal tax account online, on any payslips or on the HMRC app. To log in, visit If you have one, you can also check it on a "Tax Code Notice" letter from HMRC. Bear in mind that you might need your Government Gateway ID and password to hand to log in. But if you don't have this you can use your National Insurance number or postcode and two of the following: A valid UK passport A UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland) A payslip from the last three months or a P60 from your employer for the last tax year Details of a tax credit claim if you have made one Details from a self assessment tax return (in the last two years) if you made one Information held on your credit record if you have one (such as loans, credit cards or mortgages) Claim marriage allowance If you are married or in a civil partnership then you may also be able to reduce your tax bill by claiming Marriage Allowance. Every worker has something called a Personal Allowance. This is the amount of money you can earn every financial year before you start to pay Income Tax. For the current tax year the Personal Allowance is £12,570. If you earn less than this then you usually do not have to pay Income Tax. Marriage Allowance is a special tax rule that lets you transfer £1,260 of your Personal Allowance to your husband, wife or civil partner. It is free to apply for and can reduce your tax bill by up to £252 every tax year. To be eligible you need to be married or in a civil partnership. Your income must be below £12,570 and your partner must pay Income Tax at the basic rate, which usually means their income must be between £12,571 and £50,270. Ian Futcher, financial planner at Quilter, said: 'Many eligible couples haven't claimed this, often because they simply don't realise it exists. 'It can be backdated for up to four years if you're eligible.' The fastest way to apply for the allowance is online and you should get an email confirming your application within 24 hours. You can also claim Marriage Allowance by post using the MATCF form. For more information visit Make use of salary sacrifice Salary sacrifice is a great way to top up your income without paying any tax. It lets you exchange some of your wages for a different benefit from your employer, such as a company car, childcare vouchers or pension contributions. Your salary is then reduced by the cost of any benefits you choose. As your salary is lower, you will pay less tax and National Insurance. For example, someone who earns the UK average salary of £37,430 could decide to sacrifice £200 a month into their pension. Over the course of a year they would pay £2,400 into their pension. By using salary sacrifice their wage would fall to £35,030 a year, which would save them around £480 a year in Income Tax. They would also save nearly £200 in National Insurance, which means their total saving would be £672. Salary sacrifice also saves your employer money on National Insurance. Many employers will pass this saving on to you by paying more money into your pension. As a result, your total pension contribution could be more than £2,700. Sarah Coles, head of personal finance at Hargreaves Lansdown, said it is worth checking if your employer offers salary sacrifice. She said: 'It will not boost your take-home pay, but it will cut your tax bill and make your money go further.' Pay into pension If you are lucky enough to earn more than £60,000 a year then you may be able to get more Child Benefit with an under-used trick. Child Benefit is paid by the government to parents or other people who are responsible for bringing up a child. It is currently worth £26.05 for the eldest or only child and £17.25 for every additional child you have. You get this full payment if you earn less than £60,000 a year. But beyond this point you need to start paying the benefit back at a rate of 1% for every extra £200 you earn. The payment disappears entirely once you earn more than £80,000 a year. But you may be able to hang on to more of your Child Benefit with a simple trick, Ian Futcher explains. He said: 'If your earnings are close to the threshold, using pension contributions or salary sacrifice to reduce your taxable income could allow you to keep more of your Child Benefit.' For example, if you earned £61,000 a year then paying £1,000 into your pension would allow you to keep all of your Child Benefit. Do you have a money problem that needs sorting? Get in touch by emailing money-sm@ Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
Daily Mirror
6 hours ago
- Daily Mirror
New Look closing another store after already shutting 32 shops this year
It comes after The Times reported earlier this year that New Look was looking to 'accelerate future store closures' when leases expire New Look is closing another store next weekend - after already shutting 32 sites. The fashion retailer is closing its shop in Neath, Wales on August 6. The news was shared on social media, with a photo that shows a closing down sign in the store. The sign reads: 'Thanks for having us, Neath. This store will be closing on Wednesday, 6th August. 'Don't worry, you'll still be able to find us at with 100s of new styles dropping every week.' Disappointed New Look shoppers have been reacting to the news online. One person said: 'There be nothing in Neath soon.' Another commented: 'It'll become a ghost town soon.' A third said: 'Unfortunately it's the same everywhere. Online shopping has killed the high street.' It comes after The Times reported earlier this year that New Look was looking to "accelerate future store closures" when leases expire. The newspaper said this was due to the tax increases revealed in October's budget. According to the report, around a quarter of its 364 UK stores - around 91 sites - could be at risk of closure. New Look did not confirm this report at the time. The rate of National Insurance paid by firms increased from 13.8% to 15% from April 2025. The earnings threshold for when employers start paying National Insurance was also lowered from £9,100 per year to £5,000. At the same time, minimum wage went up by 6.7% - so for someone aged 21 and over, minimum wage is now £12.21 an hour. New Look has closed 32 stores in recent months, including Northfield shopping centre in Birmingham and Willow Place shopping centre in Corby, which both shut in June. Its branches in St Austell and Gateshead, Tyne and Wear, closed in May, while locations in Porth, Rhondda Cynon Taf and Wickford, Essex, have also shut. In February, New Look also exited the Republic of Ireland which resulted in the closure of 26 stores. At the time, the company said: 'Due to the increasingly volatile trading conditions we needed to expedite our existing plans, which included conducting a review of our operations in the Republic of Ireland. 'Following this review, the group regrettably concluded it was no longer viable to continue trading here, so it has made the difficult but necessary decision to enter liquidation in this market.' The company said its Irish operation has struggled for some years, impacted by a range of factors including 'supply-chain and in-market costs, and squeezed consumer spending'. New Look employed a total of 347 people across its network in the Republic of Ireland.
The Independent
13 hours ago
- The Independent
What can Rachel Reeves do to pay for Starmer's welfare U-turn?
Taken together, the cost to the public finances of recent reversals on welfare payments is estimated to be around £4.5bn. Restoration of the pensioners ' winter fuel payment for most recipients will cost some £1.2bn, while keeping the present arrangements on personal independence payment and the health element of universal credit will mean the chancellor loses some £2.1bn and £1.1bn, respectively. While these aren't catastrophic changes in a total public spending universe of about £1.3 trillion, Rachel Reeves allowed herself very little fiscal headroom. So she'll be looking to make up for the cost of the recent U-turns. Given that she's only just delivered a spending review that set out plans for the next three years, including tighter budgets for many government departments, she is reportedly more willing to consider tax hikes. The uncertain outlook for economic growth will make her even more cautious. Despite constraints, she has some options… What won't Rachel Reeves do? All the signs are that she won't make any further changes that could be interpreted as a direct contravention of the 2024 general election manifesto promise: 'We will ensure taxes on working people are kept as low as possible. Labour will not increase taxes on working people, which is why we will not increase national insurance, the basic, higher, or additional rates of income tax, or VAT.' The 2 per cent hike in employers' national insurance at the last Budget hit smaller businesses quite hard, and will affect wage rises, so it was very close to the letter of that pledge. She's not going to go there again. But bear in mind that the freeze on tax thresholds will remain in place until 2028 – a hidden rise in income tax for many. Is anything else ruled out? Lots: there's a whole herd of sacred cattle that she can't touch, politically. These include the rate of corporation tax, about which the manifesto says: ' Labour will cap corporation tax at the current level of 25 per cent, the lowest in the G7, for the entire parliament'. Slapping VAT on zero-rated items is effectively ruled out, as are increases in most other business taxes. There's zero chance of any further capital gains tax being applied to homeowners, which would make eminent economic sense but would be electoral suicide. Reeves may also have run out of scope for squeezing rich non-doms – for fear of ending up with lower tax revenues due to flight and increased avoidance. Council tax procedures are being tweaked, but there is little chance of any thorough reform of the eccentric system of local government finance; memories of the imposition of the poll tax remain raw, almost four decades on. The big picture here is that the UK tax base is artificially narrow, for historical and political reasons. For example, personal taxation in the UK is still low by international standards, even when the overall tax burden is near a post-Second World War high, but UK business rates are correspondingly high and uncompetitive. Wealth is taxed marginally and haphazardly. This is bad for long-term growth, and every year means taxes are loaded too high onto a too-narrow base. What is an easy hit? Capital gains tax, as usual, but again Reeves will need to be careful not to go too far and risk discouraging savings and encouraging avoidance. The same goes for changing the rules on personal pensions: higher-rate tax relief on contributions and reducing the tax-free allowance for a cash withdrawal from a pension pot. Given the need for orderly retirement planning, radical changes would be undesirable and unpopular. But there could be adjustments. Will petrol go up? It certainly should. Unbelievably, fuel duty has been frozen since 2011, at 57.95p per litre, with an additional 5p per litre 'temporary' cut in 2022 to ease the cost of living crisis. Technically, this is due to be ended next year, with the duty now scheduled to rise. For Reeves to raise more than planned she'd have to up it by, say, 10p per litre. It would raise enough to pay for the U-turns, but would attract the scorn of the motorist and 'white van man'. The wider problem here is that the switch to electric vehicles is already depressing fuel duties. Sin taxes? Alcohol and tobacco are mostly maxed out, but there's still some scope with online gambling and duties on sugary and fatty foods. The sugary drinks levy worked very well on health grounds alone, but any 'tax on food' has always been anathema to the British public (albeit VAT is levied on confectionery). Reeves will also be mindful of the great 'pasty tax' fiasco of 2012 when George Osborne tried to make some rational changes to the VAT regime, including on 'ambient' takeaway food. His 'omnishambles' Budget soon collapsed, and Greggs customers have steadily got flabbier in the succeeding years. Rachel will be steering clear. What does the Labour left want? A wealth tax: a 2 per cent levy for those with assets in excess of £10m. No chance. What about a tax on interest the Bank of England pays the banks on deposits? That does crop up as a suggestion. It's very abstruse stuff, but this basically boils down to another tax on the commercial banks. It isn't paid by 'rich bankers' as such (though it might dent some bonuses) but by the banks themselves. Other things being equal, it would mean lower returns for savers, less availability of business finance and mortgages, and a less resilient banking system. The Bank of England says it could make managing monetary policy more difficult. But it could reduce the cost of borrowing to the Treasury by maybe £10bn a year. The chancellor may find the temptation irresistible.
