Co-op Urged Staff to Promote Vapes After Cyber-Attack Hit Sales

Published: 25 October 2025. The English Chronicle Desk. The English Chronicle Online.

The Co-op has quietly instructed staff to increase the visibility and promotion of vape products in an effort to recover sales following a costly cyber-attack that disrupted operations earlier this year. Internal documents reveal a strategy to make vaping products more prominent across stores, a move that has raised eyebrows given the retailer’s reputation as a champion of ethical business practices.

According to an internal document reviewed by the Guardian, the Co-op is implementing new displays and advertising campaigns designed to boost the profile of vapes, nicotine pouches, and related products. Stores are now carrying a wider range of these products, strategically positioned in high-traffic areas to capture the attention of shoppers. The initiative is part of a broader plan, titled Powering Up: Focus Sprint: Cigs, Tobacco and Vape, aimed at addressing a significant drop in sales following the April cyber-attack, which caused widespread disruptions to inventory and online services.

The document states that “sales haven’t recovered compared to pre-cyber levels.” Under the heading “Why we need to focus on this category?” it notes £1 million in missing sales per week and 100,000 fewer transactions. It adds that at least 40% of these losses are due to customers forming new shopping habits elsewhere, unwilling to visit the Co-op without access to their usual cigarettes, tobacco, or vape products. This, the document warns, results in the loss of additional sales that would have been made in other categories.

While the Co-op’s promotion of vape products complies with UK legislation and government guidelines, some staff have expressed unease at the approach. The ethical retailer has long built its brand around the principle of “putting principles before profit,” emphasizing social goals, community programs, and responsible retailing alongside its operational and financial objectives. Staff members argue that actively promoting vapes appears inconsistent with this ethos.

“Before [the cyber-attack], even if I didn’t always enjoy work, I respected the Co-op,” said one source. “They present the idea of ethical shopping – paying a bit more, but supporting a company that does the right thing. This new strategy goes against everything the Co-op has stood for.” The source added that while staff were not explicitly told to sell more vapes, the change in store presentation – with eye-catching displays and strategic advertising – clearly signals a push to increase sales in this category.

The timing of this strategy comes amid growing public concern over youth vaping. Surveys have shown that the number of under-18s trying or regularly using vape products has increased significantly in recent years, with brightly coloured packaging and flavours such as bubblegum or candy floss contributing to their appeal. England’s chief medical officer, Professor Chris Whitty, has repeatedly cautioned on the risks, stating: “If you smoke, vaping is much safer; if you don’t smoke, don’t vape.”

Government legislation also reflects concern over youth vaping. The Tobacco and Vapes Bill, currently progressing through Parliament, is set to restrict advertising, sponsorship, packaging, flavours, and in-store displays of vape products. Some industry observers have questioned whether the Co-op’s current push to highlight vaping products aligns with the spirit of these emerging restrictions, even if it remains technically compliant.

A Co-op spokesperson defended the strategy, highlighting that the retailer remains committed to ethical values and responsible retailing. “As a member-owned organisation, our longstanding commitment to ethical values remains at the heart of how we do business,” the spokesperson said. “The sophisticated cyber-attack we experienced means we are now even more focused on powering up all aspects of our stores to serve the needs of shoppers. It is important to be clear that the sale of vape products in our stores is fully compliant with all UK legislation and government guidelines, in their recognised role as a route to smoking cessation.”

The cyber-attack in April disrupted the Co-op’s IT systems, forcing many stores to revert to manual, paper-based operations. The retailer’s grocery shelves experienced noticeable gaps, and its more than 800 funeral parlours were similarly affected, temporarily losing digital access to key systems. The disruption cost the Co-op more than £200 million in sales, with projections indicating a £120 million hit to full-year profits.

In response, management launched the Power Up programme, a company-wide initiative aimed at restoring performance across all product categories. Internal documents indicate that tobacco, cigarettes, and vaping products were singled out for focused attention due to their impact on overall basket sales. The strategy’s language highlights both the financial urgency and the operational rationale for promoting these items, but some staff see it as a shift away from the Co-op’s ethical brand identity.

“The Co-op has always been known for its ethical approach to retail,” said the source. “Now, it feels like they are exploiting a public health issue to recoup lost sales. It is at odds with the company’s history and the principles that made it stand out.”

The broader context of the UK’s vaping debate underscores why such a strategy is sensitive. While vaping is widely accepted as a safer alternative for existing smokers, its uptake among young people has prompted calls for stricter regulations and awareness campaigns. Retailers, especially those with strong ethical reputations like the Co-op, must navigate these concerns carefully to maintain public trust.

Despite staff concerns, management has reiterated that all promotions are within legal boundaries. The focus remains on recovering from the cyber-attack’s financial impact while maintaining compliance with government guidelines. Analysts suggest that the Co-op’s emphasis on tobacco and vaping products is primarily a pragmatic response to lost revenue rather than a long-term shift in business ethics.

As the Co-op continues to recover from the April cyber-attack, its experience serves as a case study in how retail organisations balance ethical values with financial pressures. The company’s response illustrates the difficult decisions faced when operations are disrupted and consumer habits shift rapidly.

Whether this approach will succeed in restoring sales without damaging the Co-op’s reputation remains to be seen. For now, staff and shoppers alike are adjusting to the increased visibility of vaping products in stores, and debates over ethics, public health, and business necessity continue to unfold.