Central Co-op and Chelmsford Star Co-operative are eyeing a potential merger to create a new entity which would grow the businesses and offer increased value for members.

The proposed merger could build a co-operative retail business with a turnover of over £1bn, according to the companies.

Barry Wood, CEO of Chelmsford Star Co-operative, and Debbie Robinson, CEO of Central Co-op, said: “This is an incredibly exciting moment for co-operation. During the UN International Year of Co-operatives, we have a shared vision to be a leading force in the co-operative movement, realising the transformative impact that co-operatives have on economies, communities and individuals.”

The merger will build on a mutual brand mission to create a community-focused business that prioritises the voices of its members, say the parties.

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Tony Price, president of Chelmsford Star Co-operative, and Elaine Dean, president of Central Co-op, added: “The transfer will ensure all members continue to have a strong voice as part of a more secure, sustainable society. Both Boards are fully supportive of this opportunity and the benefits it brings.”

The deal is subject to approval from Chelmsford Star members. Moving forward, two special members meetings to discuss the merger are set to commence on 16 July and 5 August.

Chelmsford Star is an Essex-based co-op that operates several businesses under its portfolio, including 34 food stores, nine funeral homes and two travel agencies.

Central Co-op is a major UK co-operative and has multiple locations across 22 different counties.