The Co-op is determined to be in the first wave of alternative business structures. This does not necessarily mean that other supermarket groups will swiftly follow suit, however. It is instructive to look at their experiences in financial services.

Some thought it would be easy for supermarkets to leverage their geographical ubiquity and trusted brands to make pots of money. But even though the likes of Tesco and Sainsbury’s have been in this market for years, their experience has been mixed. Not one supermarket yet offers a current account or a mortgage, for example – the key so-called ‘access products’. They remain focused on peripheral products like insurance. Why? Essentially because it’s not that easy for a supermarket to turn itself into a retail bank, however strong its brand.

Launching a current account is not as simple as it sounds. Imagine if the supermarket got a reputation for high overdraft charges; how many of its account holders would stop shopping there? The exception is of course the Co-op itself – both a supermarket and a bank already – which gave it a distinct competitive advantage. And the recession has played into its hands, with its mutual status and ethical rigour viewed as major selling points in a consumer environment where ‘bank’ is a dirty word. The Co-op’s commercial logic in seeking to exploit that unique position in legal services is difficult to dispute.