Co-op staff told to boost promotion of vapes after costly cyber-attack, document shows
The Co-op has quietly told staff to boost promotion of vapes in an effort to win back customers and sales after a devastating cyber-attack.The ethical retailer is making vapes more prominent in stores via new displays and additional advertising, according to an internal document seen by the Guardian.It is also stocking a bigger range of vapes and nicotine pouches.The action plan is to tackle a big sales drop after the April hack that resulted in gaps on its shelves.Called Powering Up: Focus Sprint: Cigs, Tobacco and Vape, the document says: “Sales haven’t recovered compared to pre-cyber.
” In a section headed “Why we need to focus on this category?”, it says there are “£1m missing sales per week” and 100,000 fewer transactions.It states: “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.”The Co-op’s approach to selling vape products in its more than 2,000 grocery stores complies with UK legislation and government guidelines but staff have raised concerns about whether it is contrary to its standing as an “ethical” retailer.On its website, the Co-op spells out that it puts “principles before profit”.
It says: “As well as having clear financial and operational objectives and employing 54,000 people, we’re a recognised leader for our social goals and community-led programmes.”The activity comes at a time of mounting concern about youth vaping after evidence showing that the numbers of under-18s trying or using vapes has soared in recent years.The brightly coloured packaging and flavours such as bubblegum or candy floss are a significant part of their appeal.England’s chief medical officer, Prof Chris Whitty, has raised concerns about the marketing of vapes, saying: “If you smoke, vaping is much safer; if you don’t smoke, don’t vape.”A source told the Guardian that staff had not been told explicitly to sell more vapes but whereas before their presence in store was low-key, there were now ads strategically placed in high-traffic areas and eye-catching display units.
“Before [the hack] even if I didn’t always enjoy work I respected the Co-op,” the source said,“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,”They said the Co-op was known for its ethical business model and that set it apart from other companies,“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.
”The government’s tobacco and vapes bill, which is making its way through parliament, will outlaw vape advertising and sponsorship.It will also restrict the flavours, packaging and display of vapes and other nicotine products.A Co-op spokesperson said: “As a member-owned organisation, our longstanding commitment to ethical values and responsible retailing remains steadfast and at the heart of how we do business.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotion“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.”They added: “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 successful route to smoking cessation.
”Co-op managers are trying to repair its finances after the cyber incident, which forced it to shut down parts of its IT systems,In a recent business update, the retailer said the fallout pushed it into the red in the first six months of its financial year,The cyber-attack led to gaps on shelves in its grocery stores, while its more than 800 funeral parlours were forced to return to operating some services via paper-based systems because of having no access to digital services,The upheaval wiped more than £200m off sales, and the group anticipates the final bill will result in a £120m hit to full-year profits,The document seen by the Guardian relates to what is a store-wide “Power Up” programme covering all product categories.
Timely assurance from Lear’s Kent | Letters
The passing of John Woodvine (Obituary, 13 October) reminded me of the time when four of us University of East Anglia students went to the Norwich Theatre Royal to see the Actors’ Company touring King Lear in June 1974.We were early and went for a something to eat at a newly opened “burger” style restaurant with booths and partitions so you couldn’t see who was at adjacent tables – a novelty at the time. The service was very slow and we were concerned that we would be late for the theatre.Suddenly a head appeared over the partition and said: “Don’t worry – they won’t start without me!” It was John Woodvine, who turned out to be the Earl of Kent and was the first to speak in the play. Needless to say we made it in time
The Guide #214: Sleep-inducing songs and tranquilising TV – the culture that sends us to sleep (in a good way)
How do you sleep at night? If you’re like Hannah, a recent subject of the Guardian’s My cultural awakening column, it’s to the sound of a rat whisking eggs. The series shares stories of people who made a significant life change thanks to a piece of popular culture, and in the case of Hannah, that meant curing insomnia by watching Ratatouille. Every night for the last 15 years, at home or abroad, she switches on the Pixar classic and, within minutes, finds herself dropping off, thanks to the film’s comforting, consistent soundscape. It’s so effective, in fact, she’s never even seen it all the way through.Hannah’s might be a bit of an extreme example, but her tale does touch on something universal: culture seems to play an increasingly important role these days in helping people nod off
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