Chinese Retail Giant Launches Online Supermarket JoyBuy In The UK

China’s largest retailer by revenue, JD.com, has begun testing a new e-commerce grocery site in the UK called Joybuy.

Initially taking orders from consumers in select London postcodes, the website offers an extensive range of ambient and frozen foods, household products, baby items, beverages, personal care, beauty, health, pet supplies, and nicotine products from major brands. Hundreds of Morrisons own-label lines are also available across several categories.

A spokesperson from JD.com told trade publication The Grocer that Joybuy was currently in a testing phase with plans for an official launch and wider rollout to other cities by the end of the year.

The UK Joybuy website says it offers same-day and next-day delivery, with a 30-day free return policy.

The report by The Grocer said the company has been quietly building a highly experienced team of UK grocery buyers and category execs in recent months.

This includes Matthew Nobbs, a former commercial director for rapid grocery player Gorillas, director of trading for Holland & Barrett, and senior buying director for Lidl UK. He was appointed JD.com UK chief merchandise officer in February and recently posted on LinkedIn: “Getting ready to rumble in the UK for one of China’s biggest success stories”.

Meanwhile, Richard Thorn, a former online trading manager at Sainsbury’s and Asda account lead for PepsiCo, was appointed senior category manager for food & beverage in January.

Buyers have also been recruited from Ocado Retail, Amazon and Tesco, with JD.com currently advertising for more than 40 London-based roles, including FMCG, baby, personal care and ambient category managers.

The report noted that, unlike other Chinese e-commerce companies such as Temu and Alibaba, which operate a marketplace model, JD.com functions as a retailer, holding stock in its own warehouses.

The company saw its turnover exceed $157bn last year and has been growing its presence outside of China in recent years. It has already established warehouses across Europe in the Netherlands, Poland, and France.

“JD.com’s operations in Europe are built on the same principles that define our success in China: delivering high-quality products at great prices, backed by fast and reliable delivery,” the company spokesperson told The Grocer.

NamNews Implications:

• JD.com is patently taking the UK market seriously.
• Staffing up.
• Starting in the UK’s biggest conurbation.
• Positioning: ‘delivering high-quality products at great prices, backed by fast and reliable delivery’.
• Categories: an extensive range of ambient and frozen foods, household products, baby items, beverages, personal care, beauty, health, pet supplies, and nicotine products from major brands.
• Hundreds of Morrisons own-label lines available across several categories.
• Need any more details?

Sainsbury’s Extends Aldi Price Match Offer To Biggest In The Market

Amid talk of an Asda-led price war in the grocery sector, Sainsbury’s has boosted its commitment to value with an expansion of its Aldi Price Match range.

The supermarket has added over 100 products, including more fridge and cupboard essentials, household products, and summer lines. The expansion means Sainsbury’s will now offer 800 products price-matched to Aldi, more than any other retailer.

New own-label products added to the scheme include kitchen towels, handwash, shower gel, sausages, feta, prosecco, champagne, wine, quiche, and houmous.

“With household costs going up, we’re working tirelessly to keep prices low for customers when doing their big shop at Sainsbury’s,” said Richard Crampton, Sainsbury’s Commercial Director – Fresh and Convenience.

“With the biggest ever Aldi Price Match, we’re introducing hot weather favourites such as dips, ice cubes and fizz, as well as family staples such as shower gel, cotton wool and period care, ensuring shoppers’ budgets can go even further this summer.”

Last week, Sainsbury’s said it expects its earnings to flatline this year in order to remain competitive. The statement came days after Tesco forecast lower profits to give it the flexibility to reduce prices in response to Asda’s efforts to win back shoppers.

After posting robust annual results, Sainsbury’s Chief Executive Simon Roberts stressed the group was committed to sustaining its “strong competitive position” and ensuring customers get “great value”.

The pledge came weeks after Asda’s Chairman Allan Leighton said that his business was prepared to take a significant hit to its profit to finance a shift to a new ‘Asda Price’ that is 5% to 10% lower than its rivals in a bid to recover lost market share.

NamNews Implications:

• If 800, why not 1,000…?
• In fact, always a puzzle why the UK mults did not respond to the arrival of discounters with a couple of ‘Aldi-aisles’ offering a replication of the discounter’s then limited range offering…
• …and possibly halting them in their tracks…
• …or at least slowing their progress maybe?

Number Of Firms Preparing Offers For Poundland

Alteri, a private equity investor that owns Bensons for Beds, is reportedly among a pack of suitors circling struggling discount chain Poundland.

According to Sky News, Alteri, which recently missed out on a deal to buy the high street operation of WH Smith, is preparing to submit an offer for Poundland in the coming weeks. It is expected to be among a number of bidders for the 825-strong chain.

Last month, Pepco Group confirmed that it was evaluating all strategic options to separate off its UK business, including a sale. Its Chief Executive, Stephan Borchert, revealed at the time that it had already received interest from potential buyers.

He declined to comment on the type of interest, what stage talks had reached, or what Poundland was worth, but said he was confident its future would be decided by September this year.

Advisory firm Teneo has been appointed to oversee the process, with analysts suggesting that a deal could put scores of stores at risk of closure.

Despite efforts to return Poundland to its core £1 offering, the business suffered a slump in sales last year. Last month, Pepco highlighted that Poundland was operating in an increasingly challenging UK retail landscape that would intensify due to tax hikes, adding further pressure to the discounter’s cost base and impacting profitability.

Alteri, which is backed by the investment giant Apollo Global Management, has not commented on the Sky News report.

NamNews Implications:

• Key facts:
• Poundland is up for sale.
• Any attempt to return Poundland to its core £1 offering has been diluted via inflation (£1 at launch is now £3+).
• Anyone buying Poundland has to:
• Close unprofitable shops
• Sell remaining sites to the ‘highest bidder’
• Possibly optimise any residual brand value via online
• And that’s it, nice while it lasted!

Sainsbury’s Joins Tesco In Warning Price War Could Impact Profits But Ramping Up Store Expansion Programme

Days after Tesco forecast lower profits to give it the flexibility to reduce prices in response to Asda’s Rollback, Sainsbury’s expects its earnings to flatline in 2025.

Following today's robust annual results, they expected £1bn retail operating profit this fiscal, far below the Tesco's potential £400m hit.

CEO Simon Roberts stressed it will sustain its “strong competitive position” and ensure customers get “great value”.

The pledge comes weeks after Asda’s Chairman Allan Leighton said that his business was prepared to take a significant hit to its profit to finance a shift to a new ‘Asda Price’ that is 5% to 10% lower than its rivals to recover lost market share.

Richard Hunter, head of markets at Interactive Investor: “In market share, Sainsbury’s and Asda are more closely linked with numbers of 15% and 12.5% i.e. Sainsbury’s rather than Tesco who could be under most pressure."

In 12 months to 1 March 2025, Sainsbury’s group retail underlying operating profit was up 7.2% to £1.04bn, with double-digit grocery growth diluted by lower profits at Argos. Pre-tax profit up from £277m to £384m.

Total full-year retail sales up 3.1% to £31.56bn, like-for-like growth of 3.2% vs Q4 up 3.7% vs 2.8% Q3

Total grocery annual sales up 4.2% after Q4 up 4.1%.

Argos, annual sales down 2.7% vs Q4 1.9% rise.

Sainsbury’s price drops via Aldi Price Match and Nectar Prices, record levels of customer satisfaction re availability.

Plans for its biggest store opening programme “in over a decade”. They bought 14 new supermarket sites last fiscal Homebase and Co-op.

Including organic store openings, they plan 15 supermarkets in 2025/26, i.e. over 400,000 sq. ft. new space, plus 25 new convenience stores in 2026/27.

Roberts: “We’ve transformed our business in 4 years, a winning combination of value, quality and service that customers love, investing £1bn in lowering our prices.

“...Sainsbury’s as their main grocery shop, highest market share gains in over 10 years. We are committed, above all else, to sustaining our strong competitive position we have built and we expect to continue to outperform the market.

“...our largest investment in expanding our store space in over a decade via new supermarkets in key new locations and extend food space...”

NamNews Implications:

• The added uncertainties of Trump tariffs…
• …gives retailers the ’excuse’ to wait and see outcomes.
• i.e. postpone any plunge into a UK price war.
• But also manage stock market expectations, should Asda take an extra plunge.
• (Besides, whilst Asda management may have permission to make threats…
• …this may not include the funding of a prolonged price war)
• Meanwhile, retailers like Sainsbury’s and Tesco with strong balance sheets and considerable momentum…
• …may now want to preserve their ‘wealth’ following Trump’s announcements.
• And await an Asda blink…

B&M Taking Steps To Boost Performance After Another Tough Quarter

Discounter B&M is forecasting that its annual profit will now come in above the midpoint of its £605m-£625m guidance range, buoyed by sales from new stores and robust French operations, with cost cuts also helping it mitigate cautious demand from customers in the UK.

The retailer’s share price spiked as much as 7.5% in early trading as investors took solace in the upgrade after it cut its profit forecast in February, having already narrowed the range previously. B&M shares have plummeted over the last year after a series of profit warnings.

In a brief trading statement today, B&M revealed that its group revenues over the 12 months to 29th March had risen 3.7% to £5.6bn after a slightly stronger performance in the final weeks of the year.

In the fourth quarter, like-for-like sales at B&M UK fell 1.8% when the distorting effect from the Easter weekend falling in the final week of the previous year is removed. This was an improvement on the 2.8% decline recorded over the Christmas period.

The group noted that UK general merchandise sales values and unit volumes in the quarter increased on both a like-for-like and total basis, driven by garden, toys, paint and stationery. However, FMCG delivered negative like-for-likes with “actions” underway to improve performance.

B&M stated that gross margin was “robust” in the UK, helped by total volume growth and relatively stronger trading in general merchandise categories.

Operating costs increased by around 6% but were partly mitigated by productivity gains.

B&M opened 45 gross new stores in the UK during the year, driving the chain’s total annual revenues up 3.8% to £4.48bn. The group is planning 45 more openings in the year ahead.

At B&M France, fourth quarter like-for-like sales rose 3.2%, with total revenues across the year growing 7.8% to £543m after the addition of 11 new stores.

At Heron Foods, total sales rose 1.5% in the final quarter but were down 0.6% across the year despite the opening of 14 new stores.

Meanwhile, B&M stated that it was making progress on finding a new Chief Executive to replace Alex Russo, who will retire at the end of this month. An announcement is expected in the coming weeks, with David Potts, the former CEO of Morrisons, reported to be one of the frontrunners.

NamNews Implications:

• Given that market expectations will have been factored into its share price, today’s uptick patently reflects shareholder satisfaction with performance.
• The key will be B&M’s ability to maintain this momentum…
• …especially the like-for-like element.
• Opportunities for suppliers to help lift new store performance…
• …by better-than-average sales levels.

Booths Introducing Loyalty Pricing

Upmarket northern grocer Booths is set to become the latest retailer to introduce loyalty pricing.

According to trade publication The Grocer, members of the Booths rewards scheme will have access to discounted prices on around 300 of the chain’s own-label lines. Cardholders will also get access to “permanent” promotions and offers, including its ‘Three for £15’ meat deal and 10% off when purchasing four bottles of wine.

Booths’ Managing Director Nigel Murray told The Grocer that it had decided to introduce the “fairly fundamental changes” as it wanted to do more to reward its most loyal shoppers. Currently, cardholders are rewarded with 5% back on the purchase of selected items in the form of paper vouchers, which they can then redeem in stores.

He noted that the new mechanism would be more relevant to the millions of visitors to the Lake District who use its two stores in Windermere and Keswick.

“They are not frequent customers, but they are regular customers as they come to us every time they come to the Lake District,” he said. “So how do we reward those people instantly when they come to store?”

Murray highlighted that running a paper-based voucher system was also very expensive.

He told The Grocer that the loyalty pricing would be rolled out to Booths’ 26 stores “imminently”.

During its last financial year, Booths delivered improved results after recovering from the impact of high inflation and the cost of living crisis.

NamNews Implications:

• The key is ‘instant rewards’.
• (key to loyalty-data optimisation)
• Not because rivals are doing so…
• …but because customers respond to a felt need.
• With evidence in repeat purchase.

Tesco’s Whoosh Service Seeing Rapid Growth While Marketplace Expanding

After Tesco released strong annual results yesterday, its Chief Executive Ken Murphy noted that its rapid delivery venture Whoosh was a “real success story”, with basket sizes and sales soaring.

The group’s total online sales in the UK grew by 10.2% to £6.8bn last year, including a c.3ppts contribution from Whoosh. Overall sales growth was primarily driven by an increase in average online orders per week, which rose 10.8% to 1.3 million, with basket size (excluding Whoosh) up 3.6% to £109.

Meanwhile, Whoosh saw sales almost double in the year, with a further improvement in customer satisfaction and growth in average basket size as it expanded the depth of the product range. After launching in 2021, the rapid delivery service is now available in over 1,500 Tesco stores, including 42 large outlets, with active customers up 48%.

“What we’re seeing in our larger stores is that instead of 3,000 products, customers have access to nearly 15,000 products. We’re seeing bigger basket sizes, and I think it’s quite a valuable service for our customers,” Murphy explained.

It was revealed yesterday that Tesco Whoosh had become the first partner of Deliveroo Express, a new white label solution that enables grocers and other retailers to offer on-demand delivery directly through their own online channels.

Initially operating out of three stores in Ireland, the supermarket is leveraging Deliveroo’s infrastructure and network of around 2,500 riders to provide the on-demand service in the country.

Meanwhile, Tesco highlighted the progress it was making with its new Marketplace, which offers a broad range of non-food products online through third-party sellers.

Having launched in June last year, the operation now offers over 400,000 products, with more sellers and category launches planned for later this year. “We are encouraged with customer satisfaction scores, and trading through Black Friday was particularly successful,” Tesco said.

“Our priority has been laying the foundations for growth, adding, for instance, the capability to offer customers Clubcard Prices when they shop on Tesco Marketplace.”

NamNews Implications:

• ‘Online basket size (excluding Whoosh) up 3.6% to £109’…
• …is the way to make online fulfilment profitable…
• …at which point, all systems go.
• With Whoosh the icing on the online-cake!

Asda Names Creative And Media Agency Partners

 

Asda has appointed Lucky Generals and Spark Foundry as its creative and media agency partners following a pitch process.

Advertising firm Lucky Generals will be Asda’s new creative agency partner for both its supermarkets and its George fashion & home brand.

The struggling grocer noted that it had been impressed by the agency’s ideas to show how Asda can deliver on its key mission of “delivering uncompromised value for hard-working families”. Lucky Generals will begin transitioning into the role in May.

Meanwhile, Asda is retaining Spark Foundry as its media agency, continuing an eight-year partnership.
“We set off on this journey to ensure we have the right partners in place to support Asda’s objectives to offer uncompromising value to our customers and with a key focus on the ‘Asda DNA’ that really resonates with our customers,” said Adam Zavalis, VP of Marketing at Asda.

“We are really pleased to have identified Lucky Generals as our new creative partner whilst retaining Spark as our media partner and look forward to working together to bring Asda’s personality to life for our customers.”

Cressida Homes-Smith, the CEO at Lucky Generals, added: “This is a pivotal moment for two of Britain’s greatest consumer champion brands – brands that deserve to be right in the heart of the nation at a time when things in Britain are genuinely tough.

“We love the palpable sense of energy, enthusiasm and determination the Asda and George bring, and there has been a natural and positive relationship between us since the very first meeting. We’re genuinely grateful for the honour and opportunity and can’t wait to get our sleeves rolled up and put these brands back where they belong.”

NamNews Implications:

• Asda now needs to hit media hard & fast…
• …in what will hopefully be a ‘re-education’ of its public…
• …given that a ‘new-education’ message would probably take longer than Asda has available.
• Fingers crossed…