The retailer plans to invest over £160 million in new stores and makeovers for its current outlets.
The plans will create an estimated 1,600 jobs.
Up to 18 new stores were planned for Scotland, including Glasgow and Edinburgh and stores in Rhayader, Powys and Bryncoch, Neath, will be the first of ten new stores in Wales.
At least 20 new stores were set to open in London.
The Co-op said it would focus on offering a ‘wide range of fresh, healthy foods, meal ideas and essentials’ alongside increased ranges of own-brand and locally-sourced produce.
It follows an announcement last year the Co-op would become the exclusive wholesale supplier to the 2,200 Costcutter Supermarkets Group stores. Nisa Retail members have also voted in favour of Co-op’s offer to buy it, subject to approval from the Competition and Markets Authority (CMA).
Jo Whitfield, chief executive of Co-op Food said it was positively responding to the changing market. “Our food business is going from strength to strength in what is clearly a challenging retail market.
“We have the ambition for our stores to be at the heart of local life, bringing communities together and offering our members and customers great quality products when and where they need them.”