UK-based The Co-operative Group may foray into new markets such as energy, housing, and education to boost its growth, chief executive Euan Sutherland has said.
Sutherland was quoted by Financial Times as saying that he planned to provide further details on potential investment areas with a full strategy update in May 2014.
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"We believe…there are some very big issues that society and families face today. There’s the cost of living crisis, there’s (moving) from education into work. Could the Co-op champion some of those things?" he added.
The diversification plans come at a time when the group is likely to undergo a massive restructure programme aimed to enable it to return to profitability while cutting debt.
The restructuring plan will be unveiled in March 2014 and could result in thousands of job losses, sale or downsizing of some of the Co-op’s existing businesses that range from grocery stores to funeral parlours and pharmacies.
Sutherland further added, "The finances are pretty stressed…we are in a debt position that is not helpful for a mutual without access to the capital markets…so we have to make careful decisions to get the group to solid financial stability.
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By GlobalData"However…looking medium to long term there may well be markets that serve a purpose."
