Waitrose Announces Plan To Open First New Supermarket In Seven Years
Wednesday, 25 June 2025
Retail Sales Tumble After ‘Dismal’ Month For Supermarkets
Retail Sales Tumble After ‘Dismal’ Month For Supermarkets
Retail sales in the UK suffered their steepest drop in 18 months last month as consumers cut back on purchases of food and household goods.
Office for National Statistics (ONS): sales volumes down 2.7% month-on-month in May, a much worse result than the 0.5% decline forecast by economists.
After a 4.7% jump in April, food stores saw a drop of 5% in May, mainly reduced volumes in supermarkets as shoppers made cutbacks amid rising inflation in the sector, alongside reduced sales of alcohol and tobacco products.
In non-food stores, sales volumes slid 1.4% over the month, mainly falls in clothing (-1.8%) and household goods (-2.5%), (reduced footfall and consumers completing home projects earlier this year because of good weather).
This monthly fall, a first this year vs a 1.3% rise in April ( unusually sunny weather boosted demand). Year-on-year retail sales volumes down 1.3% in May.
The disappointing figures come amid growing evidence that the UK economy is cooling after a robust start to the year.
Economy contracted in April by 0.3% (ONS). Businesses cut jobs, cancelled investment plans (higher taxes and uncertainty created by Trump’s tariffs.
Paul Dales, Chief UK Economist at Capital Economics, commented: “The sharp 2.7% m/m drop back in retail sales volumes in May adds to other evidence that the burst of economic growth in Q1 is over. That said, consumer spending may still outperform other areas of the economy this year.”
Meanwhile, Nicholas Found, Head of Commercial Content at Retail Economics, said: “May’s retail performance underlines a shift in consumer behaviour, with households putting value at the centre of spending decisions and pulling back on non-essential purchases. This follows a tough April that saw discretionary budgets squeezed by rising household bills.
“The cost of living remains the dominant concern for households. An uptick in food inflation is especially visible to shoppers, acting as a psychological anchor on confidence that hits non-essential retail spending.
“Households are deferring spending on full-price fashion, big ticket home items and other discretionary goods, instead prioritising travel and experiences into the summer.
“Retailers are now in the precarious position of needing to stimulate demand without eroding margins. But with a £6.5bn surge in operating costs this year, driven by increases in employment costs, business rates and utilities as our research with Barclays Corporate Banking shows, many are entering the summer trading period under significant pressure.”
NamNews Implications:
* Hopefully, only the authorities are surprised by these developments…
* i.e. any realistic business sees a market made up of uncertainties and inevitabilities…
* …where any real growth has to come at the expense of rivals.
* Deep down, people don’t trust what they are being told…
* …and are cutting back accordingly.
UKRetailSales
Tesco Sees Jump In Market Share As Consumers Shop Little And Often Amid Rising Temperatures And Prices
Tesco Sees Jump In Market Share As Consumers Shop Little And Often Amid Rising Temperatures And Prices
Kantar Latest: Grocery footfall a five-year high (4 weeks to 15 June, take-home sales up 4.1% vs 2024, jump in shopping frequency despite grocery price inflation 4.7% highest since February 2024, vs previous month 4.1%
Fraser McKevitt, head of retail and consumer insight at Kantar: “Shoppers made 490m trips to the supermarket over latest month, averaging almost 17 per British household, highest we’ve recorded vs March 2020”.
However, rise in frequency balanced out by a drop in average trip spend, ( down by three pence to £23.89).
McKevitt added: “Consumer concerns re price are continuing, and this is reflected in the figures. Sales of own-label ranges grew at 4.2% this month, ahead of branded lines, as shoppers looked to balance their budgets. Deals also remain an important tool for retailers to offer value, and the proportion of spending on promotion stepped up to 28.8% this period.”
Overall grocery volumes fell 0.4% in last 4 wks, first y-on-y decline this year. Kantar suggested that a small part of this fall could be down to changing health priorities, including growing use of GLP-1 weight loss drugs ( 4 in 100 UK households in Great Britain now including at least one GLP-1 user, almost twice vs 2024). Four in five of the users Kantar surveyed say they plan to eat fewer chocolates and crisps, nearly 3 in 4 intend to cut back on biscuits
Ocado fastest-growing grocer, sales up 12.2% in 12 wks to 15 June 2025 (more frequent visits to its website, strong performance in London and Southern England, market share 1.9%.
Traditional grocers:
Lidl fastest growing at 11.2% (3rd consec month double-digit) share 8.1%
Aldi share 10.9%, sales up 6.5%.
Tesco sales up 7.0%, share 28.1%.
Sainsbury’s share 15.2%, sales up 5.7%.
Morrisons’ grocery share slipped to 8.4% after spending in its stores only up 2.2%.
Asda’s share fell to 11.9%, till-sales down 1.7% vs same period 2024, albeit an improving trend in growth over the summer months.
Waitrose sales up 5.5% – its best result since March 2021
M&S grocery sales up 12.0% ( cyber attack recovery)
NamNews Implications:
* The jump in shopping frequency (‘highest Kantar recorded since March 2020’) could also be a reflection of the tendency to shop around.
* Switching to own-label equivalents (sales up 4.2%) continues…
* …carrying with it the risk that ‘satisfied’ switchers might stick with the habit…
* …given the smaller-than-expected compromise.
* Lidl (sales up 11.2%) and Aldi (sales up 6.5%) now have a combined share of 19.0% (!).
* Tesco power on (sales up 7%, share 28.1%) and Sainsbury’s (sales up 5.7%, share 15.2%)
* i.e. Tesco-Sainsbury’s and Aldi-Lidl have a combined share of 62.3%…
* …surely representing a continuing threat to Morrisons and Asda’s recovery ambitions.
* Maybe time for suppliers to rebalance retailer trading priorities?
GroceryMarketShares Kantar
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Waitrose has revealed plans to open its first new full-line supermarket in seven years. The 30,000 sq. ft. store will be built at Brabazon, a new town in North Bristol, and is expected to open in 2027.
The grocer signed a multi-million-pound agreement with developer YTL Developments to secure the site. The new supermarket will be located in a prime position on the A38 Gloucester Road at the gateway to Brabazon and 500m from a new train station, which is expected to open in 2026.
It will occupy the ground floor of a seven-storey office building, served by an adjacent multi-storey car park with space for over 1,500 vehicles.
Last year, Waitrose announced plans to inject £1bn over the next three years into new stores and improvements to 150 existing shops, almost half of its estate. Whilst it has opened several convenience stores in recent years, it hasn’t opened a new full-line supermarket since before the pandemic.
In May, Waitrose opened its first new store outside London in over six years, with a new convenience outlet in Southwick, West Sussex. Another Little Waitrose shop is due to open in St Andrews, Bristol, before the end of the summer. And later this summer, two more franchised stores will open at Welcome Break road service areas in Hickling, Leicestershire and Newark, Nottinghamshire.
Meanwhile, more than 20 Waitrose sites will undergo refurbishments this year, almost double the number year-on-year.
“We are moving up a gear in store investment as we open in new locations and modernise our existing estate to bring the quality, service and value that customers love about Waitrose closer to more people,” said James Bailey, Managing Director of Waitrose.
“Brabazon is one of the most exciting new city districts in the UK, driving the growth of one of the UK’s most vibrant and successful regional economies. Partnering with YTL Developments at Brabazon underlines our ambition and the opportunity we believe we have to grow our reach.”
NamNews Implications:
* Waitrose appears to be sufficiently confident in their turnaround…
* …that they are committing to new store investment and an upgrading of the current estate.
* With the plan for a new supermarket being an overt demonstration of their intent…
* …time for suppliers to reassess their Waitrose trade strategies in order to keep pace.
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