Creating a New Society

Special Members' Meetings are taking place. Discover the timings and booking information below.

Why are we proposing the merger?

Midcounties and Central Co-op have a long history of co-operation, and our Boards and Executive teams have been in discussion for several months about how we can benefit our colleagues and Members through even closer ties. We believe that bringing our two societies together in this way will create a stronger and more resilient society. A Society more able to navigate challenging economic headwinds and invest for the future, while providing greater value to our members and communities. And for our colleagues, the new Society will offer more rewarding careers and greater opportunities for development.

 

What happens next?

The Midcounties and Central Co-op Boards have put forward the proposal to create a new Society, it will be for Members to choose if they want to accept them. Members will be asked to join special members meetings where they will be asked to vote on the proposal.  The first special members meeting will be held on 17 November 2025, and the second members meeting will be held on 2 December 2025.  If the merger gets approved by members, the merger will be effective on 26 January 2026.

 

What does that mean for me?

The majority of roles, particularly in frontline services like food stores, nurseries, and travel agencies, are expected to remain unaffected. However, there will be duplication of certain roles, particularly in support centres.  So, some support roles will be consolidated, and there will, inevitably, be some redundancies.  We will work closely with those colleagues affected in a considered way, as it’s important we treat colleagues fairly, as that's the way we do things as a co-operative business. We expect to be confirming the leadership at the time of the formal member meetings set to approve the merger. For now, though, it's very much business as usual for everyone.

Should the merger proposals move forward and then be approved by members, there would be a carefully phased process of integration as we become one new Society, and our colleagues would be kept fully informed throughout. The full integration process will likely take 2 – 3 years to ensure all the benefits of the merger are fully realised.

In the meantime, we want to make sure that every colleague can ask questions they might have, and we will be holding regular briefings and answering any questions they may have throughout this process.

 

Will this merger lead to redundancies?

The proposed merger would create a larger, more resilient Society, offering more rewarding careers and greater opportunities for development as we invest in our technology, membership and marketing to grow the new Society.  In terms of the integration plan, this will take time to complete.  We’ll carefully review how support functions are structured to best meet the needs of our Food, Funeral, Travel, Nurseries and Digital businesses for the future.

 

What are the benefits of voting yes to the merger?

Our Society has a history of bringing together independent co-operatives to create stronger, more united and resilient businesses. 20 years ago, we merged Oxford Swindon and Gloucester Co-op and West Midlands Co-op to create Midcounties Co-operative.  Mergers help us stay agile, share resources, reduce costs, and make sure we can invest more back into our colleagues, Members and communities. A larger, more resilient Society creates more opportunities over time.

The combined Society is expected to generate greater trading surpluses. That improvement in financial strength gives us more to share and more to reinvest in protecting the future of our Society.

In conjunction with Central Co-op, we have developed a five-year business plan that includes significant investment in the first one to two years to integrate systems and teams. A major focus is on IT, where both societies currently use some of the same systems but pay duplicate licensing fees. By consolidating and choosing the most effective systems, we can reduce costs and improve efficiency significantly.

The needed investment over the next three years is expected to be around £23 million, mainly to support integration. However, once completed, the merger is projected to deliver annual savings of approximately £16.5 million through better buying power, streamlined contracts, and reduced duplication in systems and infrastructure.

 

What are the potential outcomes or risks if the merger does not proceed? Understanding both sides of the decision will help make an informed choice on voting.

If the merger does not go ahead, both Central and Midcounties would continue to face the same external challenges – rising costs, competitive pressures, and the need for continued investment – but we’d each be doing so alone.  We will need to review our operating costs, mainly in our support teams, because we will not be able to sustain the current level of costs given these headwinds.

By combining our strengths, we gain the financial scale, shared expertise and long-term security that comes from being a larger Society. Remaining separate would mean a less resilient outlook for both organisations, with fewer opportunities to invest in the future or to increase the profits that support our members, communities and colleagues.

It is worth stressing the point that the Boards of both societies believe the merger offers the best long-term future for members and colleagues, given the opportunities it presents to develop the business, and given the competitive and trading headwinds impacting both societies.

However, if members do not approve the merger, Midcounties will continue operating independently with a clear strategic plan. This includes improving efficiency, reducing debt, and investing in areas like member services.  Importantly, it also includes investigating other major strategic partnerships as, like Central’s Board, we believe that the merger represents the best interests for the long-term future of the members of this Society.  

 

Will sites in need of regeneration be prioritised over new site projects and will any stores be sold?

Our development programme will always balance investment in new locations with protecting and enhancing our existing sites. Priorities are carefully considered to ensure value for money and long-term sustainability, allowing us to meet the needs of the communities we serve.

If the merger does go ahead, we will be able to heavily invest in growing the society in areas like digital, technology, membership and marketing.

 

What is the process for replacement for any leavers before the merger goes ahead?

The legal guidance we follow, based on competition and markets advice, is that both businesses must continue operating on a “business as usual” basis until the merger is formally completed. This means we cannot act as though the merger has already taken place.

As a result, roles that are essential for keeping the business running will continue to be recruited where needed. We have to maintain continuity for our colleagues and customers.

 

If the merger goes ahead, what will happen to our current terms and conditions?  And will we keep our continuous service?

All colleagues will transfer over to the new society on existing terms and conditions and will keep continuous service.  If the merger proceeds, it will give the new society an opportunity to review the total reward package, and there may be an opportunity to enhance the benefits available.

 

What is the culture like at Central England?

One of the many benefits of merging our two Societies together is that the new Society will be based on our shared values and culture.  Debbie & Phil discussed this in one of their joint vlog’s which you can hear here 

 

How will member investments be handled?

At the point the merger completes, the share capital owned by members in Midcounties transfers across to Central Co-op on a £ for £ basis.  The same applies for the share capital held by members in Midcounties’ fixed term investments.  So, in practical terms, there’s no change to the existing arrangements.

 

Will home working still be allowed?

We will still be supportive of hybrid working for those roles that can work remotely.  Central also allow hybrid working, therefore colleagues will not be expected to return to working full time from the office as a result of the merger.  

 

Will the Octopus car scheme still be available?

Yes, there are no plans to change the Octopus car scheme benefit; both societies operate this scheme currently via Octopus.

 

Will pay dates be the same?

Yes, Central England and Midcounties both pay every 4 weeks, and our pay days are the same.

 

Will there be a new name?

Yes, and we will be asking colleagues and members to put forward suggestions; the new name will not contain the words Central or Midcounties.  You can send suggestions to ask@midcounties.coop.

 

When will we know the outcome of the vote?

Midcounties Members will be asked to vote at the first special members' meeting on 17 November. The results of the vote will be known and announced at that special members' meeting, and communications will then be sent out shortly afterwards to all members and colleagues confirming the outcome.

This will be the same for the Central Co-op’s special members meeting on 19 November and Midcounties' final special members meeting on 2 December, subject to each proceeding vote passing the required thresholds.  

 

Why are Midcounties transferring to central if it is a merger?

Although this is a merger, the legal mechanism to complete it is through a Transfer of Engagements, which is a standard and well-established process used by co-operatives when they merge. In simple terms, this process allows one society to transfer all its assets, liabilities, and contractual arrangements to another, ensuring continuity of business and a seamless experience for colleagues, members, and partners.

In this case, Midcounties will transfer its engagements to Central Co-op, and once that transfer is complete, the new merged society will operate as one entity. This approach is common in the co-operative sector and is tried and tested.

There are also technical reasons for choosing this direction. The most significant is accounting standards: Midcounties currently uses IFRS (International Financial Reporting Standards), while Central Co-op uses UK GAAP, which Midcounties previously used. It is simpler and more efficient to move from IFRS back to UK GAAP than to convert in the opposite direction. This makes the transfer process smoother from a financial and compliance perspective.

 

What will happen with our pensions?

Both societies have the same level of contributions, and this will not be expected to change.  We are working with our current providers, Nest and Legal and General and will communicate with colleagues in those schemes as soon as we have any further information.

 

When will we know the CEO and board structures for the new society?

Please refer to the member pack for information about the board.  The CEO position is a Board appointment, and this will be announced as soon as that appointment has been completed.

 

When will the new head office be announced?

At this point, no decision has been made regarding a single support centre. Both societies own their current head office buildings in Warwick and Lichfield, which gives us flexibility as we plan for the future.

The merger does present an opportunity to rethink how we use workspaces, especially in a post-pandemic world where ways of working have evolved. We’ll take all of these factors into account carefully. What’s most important is that we have time, we have options, and our colleagues will be at the heart of all decision-making.

 

After the merger, will job swaps be available such as experiencing working in the funeral parlour for a week?  As it will be good to see how other parts of the new Society operate.

One of the great things about working for our society is the range of businesses that we operate in, if the merger goes ahead, we will have businesses in Food, Funeral, Travel, Early Years and Utilities.  Across both societies we support our colleagues to consider their transferrable skills and continue their career in a different area.  We have some great examples of colleagues who have worked across the different businesses.  We don’t currently have a formal job swap process in place but something we can consider in the future.  We would encourage any colleague who wants to explore a career in a different business area to go and spend some time with that site or function, to understand more about it. 

 

How can I find out more information?

We’ll be providing regular updates through our usual colleague communications channels, such as colleague connect and we have set up a dedicated page called Our Future Plans where information will be regularly updated. You can continue to send your questions to ask@midcounties.coop.

You can also raise any questions or concerns with your line manager.

 

A dedicated information pack about the proposed merger can be viewed by clicking the links below.  

Proposed Merger - Information Pack 

Proposed Merger - Information Pack Appedix