The Co-op has instructed staff to give vapes greater prominence in stores in a bid to recover millions in lost sales following a damaging cyber-attack earlier this year.
According to an internal document obtained by The Guardian, the retailer launched a campaign titled “Powering Up: Focus Sprint: Cigs, Tobacco and Vape”, aimed at reversing a £1m weekly sales shortfall and the loss of about 100,000 customer transactions since the April hack.
The document outlines plans for new eye-catching vape displays, more in-store advertising, and an expanded range of vaping and nicotine pouch products across more than 2,000 Co-op grocery stores.
Although the move complies with UK regulations, it has raised internal concerns among staff who believe the strategy undermines the company’s reputation as an “ethical” retailer. “They present the lovely idea of ethical shopping – you might pay a bit more but they’re doing things right. This strategy goes against everything we’ve done until now,” one employee told The Guardian.
The timing has added to the controversy, coming amid growing concern about youth vaping. Health officials, including England’s chief medical officer, Prof Chris Whitty, have warned that while vaping is safer than smoking for adults, it should not be promoted to non-smokers.
The government’s forthcoming tobacco and vapes bill will impose strict limits on vape advertising, sponsorship, flavours, and packaging.
In response, a Co-op spokesperson said the retailer remains “committed to ethical values and responsible retailing” but acknowledged that the sophisticated cyber-attack had forced the group to “power up all aspects” of its business to meet shopper needs.
The cyber incident earlier this year caused major disruption across the Co-op’s grocery stores and funeral services, wiping over £200m from sales and leaving an expected £120m hit to annual profits.
