Shirine Khoury-Haq will step down as chief executive of the Co-operative Group after four years in post, the co-operative announced on Thursday.

She led the group through a significant transformation during her tenure, including a 95 per cent reduction in debt and a 30 per cent increase in profit between 2022 and 2024, the group said.

Her tenure was also defined by the 2025 cyberattack on the Co-op, which cost the company £285 million in revenue after it took proactive action to contain the threat by restricting access to its systems. Since the attack, the company has developed a multi-year recovery strategy, which will require “long term leadership exceeding the tenure that Shirine intended at Co-op,” the group said.

She will step down on 29 March and be replaced by Kate Allum, who will serve as interim chief executive whilst the Co-op searches for a permanent replacement. Allum is currently a member-nominated Director on the Co-op Group’s board.

Khoury-Haq said: “It has been an honour to lead our Co-op as chief executive. It is not only a commercial enterprise, but also deeply embedded in communities, doing right by them and our members every day. Following last year’s cyberattack, the organisation is now ready to deliver on an ambitious strategy of stabilisation and transformation.

“This extends beyond the timeframe I had planned for my tenure, and now is the right moment to hand over to leadership that can commit to seeing the strategy through.”

The company reported separately on Thursday that its total operating losses for the year were £35 million, with underlying losses before tax of £126 million, following an “atypical year”. It estimates that the cyberattack had a £107 million impact on its profitability, as well as driving a change in consumer behaviour in relation to the group.

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