Co-op Increases Vape Promotions Post Cyber-Attack: Internal Memo Reveals

Co-op's Strategic Shift in Vape Promotion

The Co-operative Group is taking significant steps to revitalize its sales and customer base following a severe cyber-attack that impacted its operations. An internal document reviewed by The Guardian indicates that staff have been instructed to enhance the visibility of vaping products in stores as part of a broader recovery strategy.

New Initiatives to Attract Customers

To improve its sales figures, the Co-op is introducing new display units and increasing advertising for vaping products. This initiative is part of a comprehensive plan aimed at addressing a notable decline in sales that occurred after the cyber incident in April, which left many shelves empty. The document titled Powering Up: Focus Sprint: Cigs, Tobacco and Vape highlights the urgency of this initiative, stating, “Sales haven’t recovered compared to pre-cyber.”

Financial Implications of the Cyber-Attack

According to the internal memo, the Co-op is experiencing a staggering loss of approximately £1 million in sales per week and a reduction of 100,000 transactions. The document elaborates, “We know at least 40% of this is customers forming a new habit, shopping elsewhere as they wouldn’t go without their cigarettes, tobacco or vapes. This means we’ve also lost sales from what would’ve been in their basket.”

Ethical Concerns Raised by Staff

While the Co-op’s strategy aligns with UK laws and governmental regulations regarding the sale of vaping products, some employees have expressed unease about how this approach fits with the retailer's self-image as an ethical entity. The Co-op emphasizes on its website that it prioritizes “principles before profit,” highlighting its commitment to social goals and community initiatives alongside its operational and financial objectives.

Context of Youth Vaping Concerns

This new focus on vaping comes amid growing alarm over the rising rates of vaping among young people. Recent evidence suggests that the number of individuals under 18 trying or using vapes has significantly increased, with the appealing packaging and flavors—such as bubblegum and candy floss—contributing to their popularity.

England’s chief medical officer, Prof. Chris Whitty, has voiced his concerns regarding vaping marketing, stating: “If you smoke, vaping is much safer; if you don’t smoke, don’t vape.”

Changes in Store Layout and Marketing Strategies

A source from within the Co-op revealed that while employees weren't explicitly directed to boost vape sales, there has been a noticeable shift in the store environment. Previously understated, vape products are now prominently featured in high-traffic areas, accompanied by strategically placed advertisements and eye-catching display units. One staff member remarked, “Before [the hack] even if I didn’t always enjoy work I respected the Co-op. They present the lovely idea of ethical shopping – you might pay a bit more but they are doing things right. This strategy goes against everything we’ve done until now.”

Co-op's Ethical Image Under Scrutiny

Staff members have raised significant concerns regarding the Co-op's decision to capitalize on a known health issue for profit, which they believe undermines the ethical business model that distinguishes the Co-op from other retailers. “This recent decision to exploit a known health problem and make a profit goes against the values the Co-op was built on and stands for,” said one employee.

Future Legislation on Vaping

As the Co-op navigates this complex situation, it is also facing the upcoming tobacco and vape bill currently progressing through parliament. This legislation is set to impose restrictions on vape advertising, sponsorship, and the marketing of flavors and packaging for vaping and other nicotine products.

Conclusion: Balancing Ethics and Business

In summary, the Co-operative Group's recent push to increase vape product visibility is a clear response to the financial repercussions of a cyber-attack. However, this strategy raises questions about the retailer's ethical standards and its commitment to community welfare. As the company adapts to the retail industry's changing landscape, it faces the challenge of balancing profit-making with its foundational principles.