The Co-op has instructed store staff to increase the promotion of vapes to recover lost sales following a major cyber-attack, sparking internal unease over the move’s alignment with the retailer’s ethical image.
According to an internal document titled Powering Up: Focus Sprint: Cigs, Tobacco and Vape, the company has rolled out new vape displays, in-store advertisements, and an expanded range of nicotine products across its 2,000 grocery outlets. The plan aims to address a £1m weekly shortfall in sales and 100,000 fewer transactions since the April hack that disrupted operations and left shelves empty.
The document states that a significant portion of lost sales came from customers who switched to other retailers for cigarettes and vapes, taking the rest of their shopping with them. “We know at least 40% of this is customers forming a new habit,” it says.
While the Co-op’s approach complies with UK laws and health guidelines, several employees told the Guardian the move contradicts the company’s long-standing “ethical retailer” ethos. The Co-op markets itself as putting “principles before profit” and leading on social responsibility, yet critics say the decision to highlight vapes amid growing concerns about youth vaping undermines that message.
“Before the hack, the Co-op felt different — ethical, community-focused,” one staff member said. “Now we’re being told to push products tied to addiction and health problems. It doesn’t feel right.”
Public health officials have repeatedly warned about rising vape use among under-18s, driven by bright packaging and sweet flavours. England’s chief medical officer, Prof Chris Whitty, has cautioned: “If you smoke, vaping is much safer; if you don’t smoke, don’t vape.”
The government’s upcoming tobacco and vapes bill will introduce strict limits on advertising, packaging, and flavouring, effectively banning the kind of marketing the Co-op is now expanding.
A Co-op spokesperson said the company “remains committed to ethical values and responsible retailing,” adding that vape sales are “fully compliant with UK legislation” and recognised as a “route to smoking cessation.”
The retailer is still recovering from the cyber-attack that cost it more than £200m in sales and is expected to cut £120m from its annual profits. The incident forced the company to shut down parts of its IT systems, disrupt grocery supply chains, and even revert to paper-based operations in its funeral services.
The internal “Power Up” programme, which the vape push forms part of, is designed to rebuild sales across all categories as the Co-op seeks to stabilise its finances after one of the most damaging cyber incidents in its history.
