SUPERMARKET giant Co-op is set to go ahead with the proposed merger of its struggling regional counterpart.

This comes after Southern Co-op members overwhelmingly backed plans to join forces with the major chain.

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The merger will see the regional chain to become part of the wider Co-op group Credit: Google

Southern Co-op members overwhelmingly voted for the merger in the first meeting Credit: Alamy

More than 97.7% of Southern Co-op members voted in a Special General Meeting yesterday (May 6) to become part of the national Co-op group.

Prior to the vote, the CEO of Southern Co-op had warned that the regional chain would face mass closures and “likely administration” if members did not back the merger.

He added that the brand had been facing unsustainable operating losses and difficult trading conditions for a number of years, leading to the firm’s poor financial outlook.

Now, members will hold a second meeting on May 21 to officially confirm the transfer.

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The merger would see the smaller chain’s more than 300 food stores, funeral homes and coffee branches become part of the national Co-op group.

This would create a major co-operative organisation with sales of around £11.5 billion and nearly 2,500 stores across the UK.

A Southern Co-op spokesperson told The Grocer: “This is the first step in the proposal to join forces with The Co-op Group and create a co-operative society with greater scale, resilience, and impact for members, customers, colleagues and communities across the UK.

“While the outcome for the first vote is encouraging, the second resolution vote is equally critical and we welcome our members’ continued support and engagement.”

A total of 13,361 votes were cast, which the regional chain said reinforced “active participation in co-operative governance.”

Plans for the proposed merger were initially announced on April 8, designed to strengthen the brand’s identity across the country.