The Co-op has instructed staff to increase the visibility and promotion of vape products in its stores to recover from a major sales slump caused by a cyber-attack earlier this year, according to internal documents.
The retailer — which brands itself as an ethical, member-owned business — has launched a campaign to make vapes more prominent through new displays, in-store advertising, and an expanded product range that includes nicotine pouches. The initiative, outlined in a document titled “Powering Up: Focus Sprint: Cigs, Tobacco and Vape”, notes that the April cyber incident has left “£1m missing sales per week” and 100,000 fewer transactions compared with pre-hack figures.
The document warns that many customers have formed “a new habit” of shopping elsewhere for cigarettes and vaping products, leading to further losses in other grocery sales.
While the Co-op’s strategy complies with UK laws and government guidelines, several employees have expressed discomfort, questioning whether the move aligns with the company’s ethical values. The retailer promotes itself as putting “principles before profit,” emphasising its community-led approach and responsible retailing.
A staff member told The Guardian that the push to feature vape displays in high-traffic store areas feels at odds with the Co-op’s image. “They’ve always stood for ethical shopping,” the employee said. “To now lean into selling vapes more aggressively just to make up for profits — it feels like a betrayal of what the Co-op stands for.”
The timing of the campaign comes amid rising public concern about youth vaping and the government’s upcoming tobacco and vapes bill, which will ban vape advertising, limit flavours, and restrict in-store displays.
Responding to the report, a Co-op spokesperson said: “Our longstanding commitment to ethical values remains steadfast. The cyber-attack has made us even more focused on powering up all aspects of our stores to serve the needs of shoppers. The sale of vape products in our stores is fully compliant with UK legislation and recognised as a route to smoking cessation.”
The April cyber-attack forced the Co-op to suspend IT systems across its grocery and funeral divisions, leading to widespread operational disruption. The incident wiped more than £200m from sales, and the company expects a £120m hit to annual profits as it struggles to rebuild its systems and restore customer trust.
