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.
Trump pardons founder of Binance, world’s largest crypto exchange
Donald Trump issued a pardon for the founder of the world’s largest cryptocurrency exchange on Thursday.“President Trump exercised his constitutional authority by issuing a pardon for Mr Zhao, who was prosecuted by the Biden administration in their war on cryptocurrency,” a White House statement said. “The war on crypto is over.”Changpeng Zhao pleaded guilty in late 2023 to one count of failing to maintain an anti-money laundering program and stepped down as CEO of Binance, which paid $4.3bn to settle related allegations
‘Attacks will get through’: head of GCHQ urges companies to do more to fight cybercrime
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Nothing Ear 3 review: good-looking earbuds with ‘Super Mic’ party trick
Nothing’s latest semi-transparent noise-cancelling earbuds have a new trick up their sleeves: a high-quality mic in the case that you can push a button to talk into.The Guardian’s journalism is independent. We will earn a commission if you buy something through an affiliate link. Learn more.This so-called Super Mic is designed for all those who want a microphone-in-the-hand experience for clearer conversations, recordings and voice notes in noisy environments
Tesla reports steep drop in profits despite US rush to buy electric vehicles
Despite record vehicle sales, Tesla saw a precipitous drop in profit in its most recent quarter.A rush to buy electric vehicles before a US tax credit for them disappears had boosted Tesla’s flagging sales, leading to the automaker exceeding some of Wall Street’s projections in its most recent financial quarter. Yet the company failed to meet earnings expectations and its stock fell in after-hours trading.Tesla reported third-quarter earnings of $0.50 a share on Wednesday after market close, less than the $0
OpenAI relaxed ChatGPT guardrails just before teen killed himself, family alleges
The family of a teenager who took his own life after months of conversations with ChatGPT now says OpenAI weakened safety guidelines in the months before his death.In July 2022, OpenAI’s guidelines on how ChatGPT should answer inappropriate content, including “content that promotes, encourages, or depicts acts of self-harm, such as suicide, cutting, and eating disorders”, were simple: the AI chatbot should respond, “I can’t answer that”, the guidelines read.But in May 2024, just days before OpenAI released a new version of the AI, ChatGPT-4o, the company published an update to its Model Spec, a document that details the desired behavior for its assistant. In cases where a user expressed suicidal ideation or self-harm, ChatGPT would no longer respond with an outright refusal. Instead, the model was instructed not to end the conversation and “provide a space for users to feel heard and understood, encourage them to seek support, and provide suicide and crisis resources when applicable”
Apple and Google face enforced changes over UK mobile phone dominance
Google and Apple face enforced changes to how they operate their mobile phone platforms, after the UK’s competition watchdog ruled the companies require tougher regulatory oversight.The Competition and Markets Authority has conferred “strategic market status” (SMS) on the tech firms after investigating their mobile operating systems, app stores and browsers. It means Apple and Google will be subjected to tailormade guidelines to regulate their behaviour in the mobile market.The CMA said the two companies have “substantial, entrenched” market power, with UK mobile phone owners using either Google or Apple’s platforms and unlikely to switch between them. The regulator flagged the importance of their platforms to the UK economy and said they could be a bottleneck for businesses
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