Key Rivals Matching Asda In Price War

While Asda has stated its aim to establish a 5%-10% price gap over its full-range rivals, new data suggests Tesco and Sainsbury’s are making it difficult for the struggling retailer to make progress with its strategy to win back shoppers.

The latest price comparison survey by trade magazine The Grocer, which looks at a basket of 33 everyday items, saw Tesco beat Asda by 54p in last week’s analysis.

Amid recent signs that food inflation is starting to ease, the cost of the selection of goods at Tesco and Sainsbury’s was 11% less month-on-month, while Asda’s was down 0.3% month-on-month

The Grocer noted that Tesco’s win was powered by several deep discounts, with its £81.04 basket featuring 11 price cuts.

Asda’s £81.58 basket offered the lowest price on 13 lines, with its EDLP strategy evident in several areas where it was cheapest without promotions.

Tesco’s selection was 1.4% less than Sainsbury’s (£82.18) and 6.1% cheaper than Morrisons (£86.31), where prices rose by 4.6% month-on-month, the highest of all retailers.

Last month, Asda trumpeted that it was cutting the cost of over 1,000 products as part of its drive to improve its price competitiveness. The retailer noted that the price cuts were intended to help ease the financial pressures currently being faced by many households as they head into the most expensive time of year.

The reductions were in addition to nearly 3,500 Rollback deals currently available in its stores.

Back in March, Asda signalled that it was willing to take a material hit to its profits in a bid to win back shoppers. However, price cuts since then have failed to halt its slide in market share, with Tesco and Sainsbury’s maintaining their momentum and the discounter’s making further gains.

Last month, Asda told suppliers at its annual conference in Leeds that it was launching a reset of its product offer “bay by bay” as it looks to accelerate its turnaround plan, which its Chairman, Allan Leighton, said was “30% complete”.

NamNews Implications:

• The key to price war success is perhaps not so much how shelf prices compare…
• …but how deep a retail rival can afford to go...
• ...and for how long...
• i.e. Tesco & Sainsburys, Aldi & Lidl may be in a better financial position than Asda & Morrisons…

Tesco Ramping Up Whoosh Offer

Tesco’s rapid grocery delivery service, Whoosh, is starting to offer its customers the opportunity to do full-basket shops.

Order sizes for Whoosh deliveries had been restricted by what can be carried on the back of a moped. However, according to trade publication The Grocer, several hundred Tesco stores are seeing the upper limit on order size removed at certain times of day.

The report said that the full-basket offering has been enabled in part by Tesco’s delivery partner Stuart and its network of car- and van-driving couriers.

It is understood that the unrestricted Whoosh order size will typically be available to those customers scheduling for their order to arrive later the same day.

Cornelia Raportaru, the CEO of Stuart, told The Grocer: “If you’re closer to a large Tesco store, you could literally order anything you want.”

She added: “Our strategy has been to push on innovation and do things no one else is doing. One example is large baskets – the appreciation that [shoppers] want to order a large basket for same-day delivery and not have to wait two days. Today in the UK, there’s almost no one except Stuart that has that capability that is cost-effective on all sides and rewarding also for the courier partners.”

Tesco launched Whoosh in 2021, and it is now available in over 1,500 stores, covering around 70% of the UK population.

During its last financial year, Tesco’s online sales rose by 11.4%, driven primarily by volume growth, including a 2ppts contribution from Whoosh after a near 60% year-on-year jump in orders.

In a results call with analysts earlier this month, the group’s CEO, Ken Murphy, said: “It’s now a really meaningful business. It’s now growing at a really rapid rate. It has, we believe, some real competitive advantage that we want to exploit. So, you can see further investment in that. I think there’s quite a long way to go before we would say that model is mature.”

NamNews Implications:

• If the demand is there, ways will be found…
• With the unrestricted facility going to those paying for speedy (same day) delivery…
• …Stuart’s near-unique large basket facility gives Tesco a competitive edge (and Innovator’s advantage) in building on its 11.4% growth in online.
• (An opportunity for suppliers in appropriate categories?)

hashtag

Morrisons To Roll Out ESLs Across Supermarket Estate

Morrisons is partnering with VusionGroup to roll out electronic shelf labels (ESLs) across all of its 497 supermarkets.

Whilst Lidl and several convenience store chains have adopted the technology, Morrisons will become the first of the traditional multiples to use ESLs across its core estate.

VusionGroup will install 10.8 million smart ESLs in Morrisons supermarkets to replace old-fashioned paper labels. In addition to providing accurate price and product information, the retailer noted that automating the shelf labelling process will free up staff time to focus on customer service. Meanwhile, the ESLs will ensure its loyalty card offers are instantly communicated to shoppers at the shelf edge.

Morrisons highlighted that the new technology will integrate with its digital shelf-edge cameras to guide staff to product gaps, speeding up shelf replenishment. It will also integrate with e-commerce applications to make online picking easier and more accurate.

The supermarket noted that it plans to work closely with VusionGroup to explore how to leverage the data generated across various initiatives, “identifying new opportunities to enhance store operations and customer experience”.

The rollout of the new digital labelling system across the Morrisons supermarket estate will commence early next year. The project will include an upgrade of the group’s in-store wi-fi infrastructure, delivering an improved in-store experience for its customers and supporting the digital development.

Morrisons stated that the adoption of VusionGroup’s digital labelling solution was the latest initiative in its digital technology programme, with other recent developments including the rollout of shelf-edge cameras, the introduction of a digital task management platform, and trials of AI-powered shopping trolleys.

“As digital innovation reshapes the retail landscape, we’re constantly evaluating new technology that can help us serve customers better,” said Gordon Macpherson, Group Productivity Director of Morrisons.

“We’re excited to be the first large supermarket group in the UK to introduce digital shelf edge labelling across our entire supermarket estate and look forward to rolling out the technology in 2026. This latest investment further underlines our commitment to modernising and digitising our business to deliver an enhanced shopping experience for Morrisons customers.”

Sébastien Fourcy, SEVP EMEA at VusionGroup, added: “This partnership with Morrisons is a cornerstone in our strategic roadmap towards 2027 and exemplifies our commitment to driving transformation at scale.

“By equipping all their supermarkets with our solutions, we’re not only delivering immediate operational benefits, but also laying the foundation for future innovation in omnichannel retail across the UK, which is a key market for us in the EMEA region.”

NamNews Implications:

• Should increase in-store service level, providing staff ‘freed up‘ by ESL will be redeployed in-store.
• Should result in an improved shopping experience.
• Should minimise shopper hesitation via improved shelf price-accuracy,
• Should ensure most shopper-whims/impulse needs are satisfied via on-shelf gap-filling,
• Should time permit, in a race against the clock.

Profits Jump At Lidl GB As It Prepares To Open 1,000th Store

Lidl GB saw significantly improved results in its last financial year due to store expansion, its success in attracting shoppers with low prices, and its loyalty scheme.

During the year to 28 February 2025, the discounter’s revenue climbed 7.9% to £11.7bn after 38 million more customer visits were made to its stores than in the 12 months prior. Lidl noted that it experienced over £400m in direct switching from competitors as well as almost £500m in growth from customer loyalty, totalling an almost £900m increase in turnover.

The growth in shopper numbers and recent investments in its operations drove pre-tax profit up from £43.6m to £156.8m, while operating profit jumped 42.3% to £314.1m.

Lidl noted that it has maintained its position as the fastest-growing bricks & mortar grocer for more than two years, driven by its commitment to low prices and investment in the business. This has included new store openings, as well as improvements to its existing sites and warehouses. The discounter also highlighted that its popular Lidl Plus loyalty scheme was continuing to drive footfall to stores.

Latest Worldpanel by Numerator data shows Lidl now controls 8.2% of the grocery market, edging it closer to overtaking Morrisons, which has a share of 8.3%.

“Our results reflect the momentum we’ve built and the trust shoppers place in us. More households are choosing to shop with us more often, because we continue to deliver on our promise of outstanding quality at the lowest possible prices,” said Ryan McDonnell, Lidl GB CEO.

“Over the last year, we have continued to operate with our discounter efficiency at the heart of everything we do, all the while investing strategically in areas that will benefit our people, suppliers and communities. This continues to set Lidl apart, and I’d like to thank all colleagues for their support this year in driving our strategy forward. The fact that we have maintained the title of fastest-growing bricks-and-mortar supermarket is testament to them.”

Lidl will mark a major milestone next month when it opens its 1,000th store in the UK as it enters its fourth decade in the country. The discounter will open 13 new stores between now and Christmas, with a total of 40 new outlets before the end of its current financial year.

NamNews Implications:

• Lidl continues to prove it is a retailer made for unprecedented times.
• With a loyalty scheme that shows it can play with the Big Boys.
• OK, some of its growth comes via footprint extension…
• …but Lidl results are increasingly showing that suppliers not engaging with them are missing a trick.

DCS Agrees Branded Supply Deal With M&S Food Following Its Move Away From Booker

Weeks after ditching Booker in favour of A.F. Blakemore for the supply of branded chilled and ambient food products, M&S Food has switched to DCS Group for branded household, toiletries, and health & beauty lines.

According to trade publication The Grocer, the FMCG distributor has replaced the Tesco-owned wholesaler in supplying over 90 SKUs to M&S, ranging from Pampers to Colgate and Calpol, and making up most of the retailer’s branded non-food offering.

Both moves ended a supply relationship that had existed between M&S and Booker for more than 15 years.

DCS had already been working with M&S in trials of new branded lines since October last year.

A DCS spokesperson is quoted by The Grocer as saying: “Leveraging its extensive category expertise and long-standing relationships with leading FMCG brands such as P&G, Unilever and Colgate, DCS Group is well positioned to enhance M&S’s branded offer and deliver increased value and availability to customers.”

DCS Chief Executive Michael Lorimer added: “We are delighted to be partnering with M&S, a business that shares our focus on quality, innovation and outstanding customer service.

“Our strength lies in our category knowledge, deep brand partnerships and supply chain expertise. By combining these with M&S’s customer-first approach, we look forward to creating real value for M&S shoppers while ensuring seamless, reliable distribution. This is a major milestone as we continue our growth trajectory.”

NamNews Implications:

• Some suppliers and rival retailers may take time to wonder why M&S and Booker terminated a 15-year relationship…
• Meanwhile, M&S will simply focus on optimising its new partnerships in order to benefit its customers.
• Resulting in increased sales per trip and repeat sales.
• Watch this space…

Asda To Open Nine New Express Stores This Week

Asda is ramping up the rollout of new Express convenience stores this week by opening nine sites.

The group recently announced that it was resuming its Express store opening programme after a pause to focus on converting the 469 sites it acquired from the Co-op and EG Group. Up to 20 of the convenience stores are due to open in the final three months of 2025.

Asda noted that the new stores reflect its ambition to strengthen its presence in high-footfall urban areas, residential neighbourhoods, and transport hubs – locations where it has traditionally had a limited presence.

Seven of the openings this week are in London, including Tower Bridge, Greenwich, Limehouse Station, Harringay, Deptford, Whetstone, and the former Arsenal FC club shop at Finsbury Park station. Outside the capital, two new stores will launch this week in Botley (Southampton) and Stoke.

Each Express convenience store offers over 3,000 branded and own-label products, with a range of fresh, ambient and chilled groceries, alongside beers, wines and spirits. Additional services include Costa Coffee machines, ATMs, Amazon collections and returns, and on-demand delivery options through the likes of Uber Eats, Just Eat and Deliveroo.

All new stores will also be equipped with electronic shelf labels (ESLs) as part of a wider rollout announced by the retailer earlier this month.

“We’re thrilled to be opening nine new Express stores this week, including seven in London – an area where we have traditionally had less of a presence in convenience,” said Joseph Sutton, VP of Asda Express, foodservice and fuel.

“These openings are a key part of our strategy to bring Asda’s unbeatable value to more urban areas and residential communities across the UK. We know customers have looked forward to these stores opening for a long time, and we’re delighted to welcome them in and offer outstanding value across their favourite products.”

Earlier this month, Asda opened a new Express store in Castleford, kicking off the latest phase of its rollout programme. The group is targeting to open a further 10 Express stores before the end of the year, with a “strong” pipeline of further openings planned for 2026.

NamNews Implications:

• Asda continue to race against the clock.
• Key issue is the extent to which suppliers will attempt to keep pace…

Lidl Integrates Payment Feature Into Rewards App

Lidl GB has taken another step in transforming its in-store checkout experience with the launch of Lidl Pay, a payment feature integrated directly into the discounter’s increasingly popular rewards app.

The retailer noted that the move comes as Lidl Plus continues to gain traction among shoppers, with the number of monthly active users growing by over a third in the past year. The surge is said to reflect increasing customer engagement with the app’s personalised offers and digital features.

The introduction of Lidl Pay will allow users to activate their Lidl Plus coupons and offers, and complete their purchases either at staffed tills or self-checkout terminals, all through the app.

“The integration of payment functionality into the Lidl Plus app represents a step forward in our digital evolution,” said Shyam Unarket, customer relations director at Lidl GB.

“We are committed to investing in technologies that simplify the customer journey and offer greater flexibility in how people shop with us. Whether customers prefer using traditional tills or self-checkouts, we want to ensure that every shopper can choose the experience that best suits them.”

The introduction of Lidl Pay comes amid the rollout of self-checkouts in its stores and the recent introduction of a Click, Reserve & Collect service via the app. The discounter is also currently testing a scan & shop feature in four stores, ahead of an expected rollout next year.

NamNews Implications:

• Lidl’s payment feature will be watched by rivals…
•  …both in terms of effect on market share growth…
• …and also as an incentive for incorporating within their offerings.
• Ditto the scan & shop feature.
• Meanwhile, Aldi?

Majestic Bolsters Buying Team

Wine retailer Majestic has strengthened its buying team with several new hires.

Phil Edwards has joined the company to oversee the categories of Spain, Rose, Champagne, Sparkling and Fine Wine. He has more than 30 years of experience in the drinks industry, including spells at Direct Wines, Booker, Safeway, Threshers, Mitchells and Butlers and Drinks 21. Edwards joins Majestic from wines & spirits supplier General Wine & Liquor Company, where he served as commercial manager.

Karen O’Donoghue has made the switch from the Irish department store chain, Dunnes, to take responsibility for all French red and white wines at Majestic. She holds a WSET Diploma and is two years into her Master of Wine studies.

The trio of new senior buyers is completed by Catherine Forbes-Taylor, who joins the retailer from organic baby food specialist, Ella’s Kitchen. She has 15 years of experience in buying roles, including stints with John Lewis, Whittard of Chelsea and furniture brand Laura James. She will oversee the buying of wines from New Zealand, Australia, Argentina and Chile.

Meanwhile, James Cox, who previously worked in Majestic stores between 2011 and 2015, has returned to the business as a junior buyer.
The new additions join existing team members Jane Masters MW, Zara Cassidy, Andy Bray and Rebecca Ohayon Gergely. All will report to Majestic’s head of buying, Matt Fowkes.

Majestic’s Managing Director, Elizabeth Newman, commented: “I’m delighted to welcome Phil, Karen, Catherine and James to Majestic. They will bring different ideas, perspectives and expertise to the buying team, and I’m really looking forward to working with all of them as we develop our award-winning proposition across wines, beers, spirits and our fast-growing snacks and gifting categories.

“We’re really proud of our track record of sourcing exciting, innovative and exclusive wines from around the world, and our new buyers are perfectly placed to help us to continue delivering on that promise for our customers.”

NamNews Implications:

• An undoubted strengthening of the buying team
• Reflecting experience in traditional alcohol....
• But curiously no mention of Low-No..?