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Major supermarket to shut three stores as retailer posts £2.6million losses

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Southern Co‑op has confirmed it will permanently close three food convenience stores on February 24 as the retailer faces mounting market pressures and rising operating costs.

The affected branches are on North Street in Bedminster, Bristol, at Moggs Mead in Petersfield, and on Salisbury Road in Blandford Forum.


A spokesman said: “As a result of sustained market changes and operating cost increases, we have taken the decision to sell three of our food convenience stores.”

The Bedminster store has traded for 15 years.

Supermarket

Permanent closures in Bristol, Petersfield and Blandford Forum

| GETTY

Southern Co‑op, which operates around 200 stores across 11 counties in southern England, stressed the closures do not reflect the performance or dedication of staff.

The retailer reported an operating loss of £2.6million in 2025, attributing the deficit to external pressures including retail crime, inflation‑driven cost increases and higher wage bills.

The spokesman said the closures form part of wider efforts “to optimise our store portfolio and strengthen our long‑term operating model given external challenges and competition”.

Convenience shops in town centres have faced increasing strain as consumer habits shift towards larger weekly supermarket trips and online grocery deliveries, while elevated energy bills and employment costs have added further pressure.

Southern Co‑op said it would work with employees affected by the closures to explore alternative roles within the organisation.

“While this may not be feasible for everyone, we are committed to supporting all impacted colleagues throughout this process,” the spokesman added.

The company also thanked customers for their loyalty and apologised for any disappointment caused.

The closures follow a wider restructuring programme announced in 2025.

Co-op store; Dubai chocolate brownie at Co-op

A Co-op store sign

| PA/CO-OP

Southern Co‑op revealed plans to sell 22 directly operated convenience stores as part of efforts to strengthen its business model.

When buyers did not come forward, the company opted to shut the locations permanently.

The February closures come weeks after Southern Co‑op closed its New Forest branch in January as part of the same review.

The retailer, which runs more than 300 locations nationwide across its wider operations, said it remains committed to its remaining stores and to serving the communities in which it operates.

Supermarkets have reported strained finances operationally.

Rising staffing costs and food prices including cocoa and coffee following poor crops are contributing to tightening profit margins.

Retail is the UK’s largest private-sector employer, with hundreds of thousands of hourly paid staff in stores and distribution centres.

This leaves supermarkets acutely exposed to a restricted labour market and minimum wage legislation.

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