The Co-op has instructed staff to increase the visibility and promotion of vape products in stores as it seeks to recover from a major cyber-attack that severely impacted sales.
According to an internal document seen by The Guardian, the retailer has launched a new strategy to boost revenue by expanding its range of vapes and nicotine pouches, introducing eye-catching displays, and placing new advertisements in high-traffic areas.
The initiative, titled “Powering Up: Focus Sprint – Cigs, Tobacco and Vape,” outlines how the company has suffered a £1m weekly shortfall and 100,000 fewer transactions since the April hack disrupted operations. “Sales haven’t recovered compared to pre-cyber,” the document states, noting that many customers have “formed a new habit” of shopping elsewhere for cigarettes and vapes.
While the Co-op’s approach complies with UK laws and government guidance, some employees have expressed unease about whether the focus on promoting vapes aligns with its self-described status as an “ethical” retailer. The company’s website states it puts “principles before profit” and prides itself on social responsibility.
A Co-op worker told The Guardian: “They present the lovely idea of ethical shopping – that you might pay a bit more because they do things right. This strategy goes against everything we’ve done until now.”
The timing of the push has raised eyebrows, as concerns grow about the rise in youth vaping and the appeal of flavoured, brightly packaged products. England’s chief medical officer, Prof Chris Whitty, has warned that while vaping is safer than smoking, it should not be used by non-smokers.
The government’s upcoming Tobacco and Vapes Bill will tighten advertising and packaging rules, ban vape sponsorships, and restrict flavours to curb youth use.
A Co-op spokesperson defended the company’s position, saying: “Our longstanding commitment to ethical values and responsible retailing remains steadfast. The sale of vape products in our stores is fully compliant with all UK legislation and government guidelines, in their recognised role as a successful route to smoking cessation.”
The cyber-attack earlier this year forced the Co-op to shut down parts of its IT network, affecting stores and funeral services. The incident wiped more than £200m off sales and is expected to cost the retailer about £120m in profits for the full year.
