What does the the Co-op, The Gambling Commission and LIV Golf all have in common?
There is a faint whiff of ordure coming from the Co-op. Were it a PLC, the number of recent C-Suite departures would be ringing alarm bells. The fact that letters have been sent to the Board and then released into the wild suggests that worse is afoot. The Co-op’s performance, if it were a PLC, would be the subject of press speculation. As it is, the Grocer and I are now writing about it, and if I had any financial relationship with the Co-op, I would be at least concerned.
A recent controversy at the Co-op has highlighted the impact of alleged leadership issues on the organisation’s performance and morale. The situation stems from a letter sent to board members that described a culture of “fear and alienation” among senior staff, particularly their reluctance to speak openly to top executives, including the £750k pa CEO Shirine Khoury-Haq.
According to the letter, this environment led to declining morale, departures of key senior staff, and serious operational errors. Staff recounted that their input was often dismissed or met with hostility, which contributed to a sense of intimidation in the workplace. These concerns come after last year’s cyberattack on the Co-op. The letter criticised the retailer's response, saying the retailer filled the shelves with whatever products were available rather than proper replacements, leading to lost sales and increased food waste.
Another significant change—the creation of the group commercial and logistics division that merged several buying teams—was cited as a disruptive move. The restructuring reportedly created confusion among suppliers and contributed to operational challenges, further affecting the Co-op’s performance. The aftermath of these changes saw several senior executives, including chief commercial officer Sinead Bell and propositions director Adele Balmforth, depart the company. These exits were seen as both a consequence of the new culture and a catalyst for further instability. Commercial director Rebecca Oliver-Mooney also said last week that she is leaving to join the soft drinks brand Hip Pop as strategy and insights director.
In response, a Co-op spokeswoman said, “As a co-operative, our culture ensures decision-making takes into account perspectives from leaders and colleagues across the business. We acknowledge that not everyone will always agree with final decisions.”
So no change there then. Can’t Hear, Won’t Listen.
Talking of organisations that have totally lost the plot,
