The Co-op has instructed store staff to ramp up the promotion of vape products in a bid to recover lost sales following a costly cyber-attack earlier this year, internal documents reveal.
An internal memo titled “Powering Up: Focus Sprint: Cigs, Tobacco and Vape” outlines a new sales strategy that includes more prominent in-store vape displays, extra advertising, and a wider range of vaping products and nicotine pouches. The document says the retailer is missing about £1m in sales per week and recording 100,000 fewer transactions since the April cyber incident disrupted operations and supply chains.
The plan aims to win back customers who switched to other retailers during the crisis. “We know at least 40% of this is customers forming a new habit, shopping elsewhere as they wouldn’t go without their cigarettes, tobacco or vapes,” the document states.
While the strategy complies with UK laws and public health guidance, several Co-op employees have questioned whether it contradicts the company’s reputation as an “ethical” and socially responsible retailer. “They’ve always promoted the idea of ethical shopping,” one staff member said. “Pushing vapes so heavily feels completely at odds with that.”
The move comes amid growing government scrutiny of vaping, particularly among teenagers. England’s chief medical officer, Prof Chris Whitty, has warned about the dangers of youth vaping, saying: “If you smoke, vaping is much safer; if you don’t smoke, don’t vape.”
The government’s tobacco and vapes bill, currently progressing through parliament, will ban vape advertising and sponsorship, and impose strict rules on flavours, packaging, and displays.
In response, a Co-op spokesperson said the retailer remains committed to its ethical values: “Our longstanding commitment to responsible retailing remains at the heart of how we do business. The sale of vape products in our stores is fully compliant with UK legislation and recognised as a successful route to smoking cessation.”
The cyber-attack that triggered the crisis forced the Co-op to shut down key IT systems, leading to empty shelves in supermarkets and disruptions at its 800 funeral homes. The company reported that the attack wiped more than £200m off sales and is expected to cost around £120m in lost profits this year.
The renewed vape promotion forms part of a wider “Power Up” initiative aimed at rebuilding the Co-op’s financial performance after one of the most challenging periods in its recent history.
