Owner Of Superdrug Could Be Heading For Stock Market Listing

CK Hutchison Holdings is reported to be considering a stock market listing for its AS Watson business, which operates the Superdrug, Savers, The Perfume Shop, and Rossmann chains.

According to Bloomberg, the Hong Kong-based conglomerate has been speaking with financial advisers about a potential listing, which could raise $2bn or more. A further report by the Wall Street Journal said that Hutchison was planning a dual listing of AS Watson in Hong Kong and the UK, targeting the first half of next year.

AS Watson operates over 17,000 stores in 31 markets, including the Superdrug chain in the UK and Rossmann pharmacies in Germany. It also runs the Watsons chain of health and beauty shops across Asia, as well as grocery, wine and electronics stores in Hong Kong.

AS Watson’s total revenue increased by 4% (+5% local currency) to HK$190.19bn (£18.91bn) over the year to 31 December 2024, with its EBITDA edging up 1% (+2% local currency) to HK$16.40bn (£1.63bn).

Reports noted that considerations are preliminary and no final decisions have been made, including on the size of the potential offering.

Hutchison and AS Watson have not commented.

NamNews Implications:

• A public listing means more details and accountability at local level…
• …of interest to suppliers and rival retailers in the UK.
• The initiative raises the question of what use the company might make of the $2bn?

Lidl Set To Open 1,000th Store In The UK

Lidl will open its 1,000th store in the UK next week, on Thursday, in East Grinstead, Sussex. The milestone has been reached 31 years after the German discounter made its debut in the country, and comes at a time when it is the UK’s fastest-growing grocery retailer.

As part of celebrations to mark the landmark opening, the discounter is giving away 1,000 kits online for its customers to make a gingerbread version of its latest Lidl store. Ten of the kits will also contain £100 in Lidl Plus vouchers.

Joanna Gomer, Marketing Director at Lidl GB, said: “Reaching our 1,000th UK store is a huge milestone for Lidl, and we want to celebrate in a way that everyone across the country can enjoy.

“Our gingerbread houses have been a customer favourite, so we mixed things up a bit by creating a special kit that not only showcases our new East Grinstead store but also captures the fun and festive spirit of the season.”

After posting a jump in annual profits last month, Lidl GB revealed that it wanted to accelerate its store opening programme to continue winning market share from its rivals.

With it poised to overtake Morrisons to become the fifth largest grocer in the UK, the discounter’s Chief Executive Ryan McDonnell said that he saw an opportunity for “hundreds more stores”.

Lidl is on track to open 40 new sites in its current financial year. “40 is a good run rate and that sort of would set a benchmark for upcoming years,”

McDonnell said, while declining to put a ceiling on Lidl’s store ambitions in the UK. Aldi has previously stated that it has a long-term target of 1,500 sites.

NamNews Implications:

• To think, how much the discounters have achieved in 31 years in the UK!
• A retail format ‘made’ for uncertain times…
• (with a probable Morrisons psychological ‘hammer blow’ to come)
• A break with traditional, sophisticated UK retailing.
• A model still alien to some.
• Now in a position where suppliers have to have a good reason for ignoring this route to consumer…

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Asda Raises Nearly £600m From Store Sell-Off

Asda has raised £568m from two separate store sale & leaseback deals in a bid to shore up its finances ahead of a looming debt repayment to its former owner, Walmart.

The transactions have involved four of its supermarkets (Small Heath, Colindale, Coventry Abbey Park, and Killingbeck) being sold to DTZ Investors and leased back, and 20 stores and its Lutterworth distribution depot being sold to Blue Owl Capital and leased back.

All properties are subject to 25-year lease agreements, with an option to renew for an additional 10 years.

The struggling retailer noted that it will continue to operate all sites as normal, with a spokesperson saying: “Asda’s property strategy is centred on maintaining a strong freehold base while also taking a considered and selective approach to unlocking value from our estate where appropriate.

These transactions reflect that approach, enabling us to realise value from the sites while retaining full operational control.”

A report by the Financial Times stated that Asda intends to use the proceeds to help it repay a debt to Walmart, which retained a 10% stake in the company following the £6.8bn debt-fueled acquisition by TDR and the Issa brothers in 2021.

The structure of the buyout left Asda owing the US retail giant so-called payment-in-kind interest, which is rolled up and added to the principal due. When the investment matures in 2028, Asda could owe Walmart £900m. Sources told the FT that Asda was seeking to settle the debt next year before the interest rate begins to rise.

The latest sale & leaseback deals struck take the total amount TDR has raised from Asda’s property portfolio to more than £3bn.

Despite showing some ‘green shoots’ of progress from Chairman Allan Leighton’s turnaround plan, the latest Worldpanel data suggests that Asda is struggling to win back shoppers from fast-growing rivals Tesco and Sainsbury’s, and the discounters.

Over the 12 weeks to 2nd November, Asda’s market share slipped from 12.6% to 11.6% following a 3.9% sales decline.

NamNews Implications:

• ‘Business as usual’ following sale & leaseback.
• But with the rental costs on those stores hitting the bottom line.
• But the capital gain can help to pay down some debt.
• Watch this space…

More Changes In Asda’s Leadership Team

Following yesterday’s news that Asda’s VP of Marketing, Adam Zavalis, was leaving the business after just over two years in the role, the struggling supermarket has announced several other changes to its senior leadership team to support its turnaround plan.

Andy Newton will join Asda in January as VP of Property, overseeing its estates, acquisitions and store development. He has previously held senior property roles at Safeway, Morrisons, and most recently, Poundstretcher.

Following the new appointment, Jim Townsend will continue in his role as VP of Procurement, overseeing goods not for resale strategy, policy and buying. Meanwhile, Geri Hebberd will “refocus her role” as Senior Director, Strategy.

All three will report directly to Asda’s Chief Financial Officer, Michael Gleeson.

After the unexpected departure of Zavalis, Asda confirmed it was planning to recruit a new VP to lead its advertising, social, creative and design teams.

While it searches for the right person to lead its marketing teams, Pippa Prain will move into a new SD Marketing Planning, Propositions & Operations role on an interim basis, to “provide end-to-end strategic leadership and coordination across the function”.

Jen England is also returning to Asda from Morrisons to take on the position of Interim SD Marketing Communications, covering the supermarket’s advertising, social and design teams.

Meanwhile, Max Hilliard has been appointed as Managing Director of Forza & Kober Foods, which is part of Asda’s sourcing division IPL and provides a range of cooked and sliced meats to the business. The move marks a return for Hilliard, having founded the Forza business in 2007.

Following his appointment, Jon Hornby has been appointed as Managing Director IPL Produce Manufacturing.

Despite showing some ‘green shoots’ of progress from Chairman Allan Leighton’s turnaround plan, the latest Worldpanel data suggests that Asda is struggling to win back shoppers from fast-growing rivals Tesco and Sainsbury’s, and the discounters. Over the 12 weeks to 2nd November, Asda’s market share slipped from 12.6% to 11.6% following a 3.9% sales decline.

NamNews Implications:

• Albeit the team members have the experience to hit the ground running…
• Asda’s dilemma remains a race against the clock…

Can Anyone Save Asda? It Could Be Overtaken By Aldi In Monthshh

If you want to know how Asda lost its way under the Issa brothers, take a trip to South Manchester. At one end, opposite the Heineken brewery in the heart of Moss Side, an Asda superstore is in a deprived community whose cash-strapped shoppers value low prices for essential food and clothes.

Read the full article on This is Money website

NamNrews Implications:

• Given the talent pulled on board thus far, Asda is probably in the best possible hands.
• The only issue is the clock.
• A race against time..
• Fingers remain crossed…

Co-op Opens Third ‘On The Go’ Store

 

After the launch of its new ‘on the go’ micro store format over the summer, Co-op has opened a third site in Aylesbury.

The new concept focuses on serving food ‘on-the-go’, offering breakfast, lunch and dinner in new formats, from traditional meal deals to the inclusion of a hot food counter and deli-inspired selections.

The Aylesbury store follows launches in Solihull High Street and Altrincham’s Stamford Quarter, with the retailer previously stating that it aims to roll out to several hundred sites over the next two to three years.

At less than 600 sq. ft., the latest store takes cues from around the world to meet consumer demand for fast, food-for-now options throughout the day.
Between 7am-7pm, the outlet on Aylesbury High Street will serve breakfast, lunch and dinner, with online home delivery of hot food also available in the evening via Co-op’s quick commerce partners, Just Eat, Deliveroo and Uber Eats.

Gary Williams, Co-op Director of Store Optimisation, said: “We are delighted to grow our ‘on-the-go’ concept with the unveiling of our Aylesbury store. We continually look for new ways to get closer to our customers and deliver added convenience.

“Our new concept brings together an innovative blend of food-to-go propositions, with freshly prepared products designed to stand out in the high street and serve this vibrant and thriving community. Catering to ‘on-the-go’ meals throughout the day you will find delicious products, quick service, quality and value, and all in a great convenient location.”

The new store format joins Co-op’s traditional convenience stores across the UK, and is one of 50 new or refurbished sites the company is opening before Christmas.

NamNews Implications:

• Being retail, ‘try it & see’ will determine the roll-out rate.
• This simple (and convenient) proposition…
• …in minimal, well-placed space…
• …looks and feels good.
• Well worth watching…

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Grocery Inflation Eases As Supermarkets Ramp Promotions; Tesco And Lidl Make Biggest Share Gains As Asda Continues To Struggle

Worldpanel by Numerator: grocery price inflation slowed to 4.7% over 4 weeks to 2nd November as supermarkets increased the level of promotions ahead of the key Christmas trading period.

Take-home sales up 3.2%, spending on deals up 9.4% vs spending on full-priced goods up 1.8%.

Fraser McKevitt, head of retail and consumer insight at Worldpanel: “Retailers are very alive to the financial struggles that some households are facing, not least ahead of this year’s Budget. They’re eager to show how they’re offering shoppers value for money, putting the emphasis on price cuts rather than multibuy offers. It’s not just the Grinch who’s looking for savings, with just shy of 30% of consumer spending at the grocers on promoted items in October, a figure that we expect to go even higher as we get closer to Christmas.”

Worldpanel is predicting record sales for premium lines this year, with the potential to reach more than £1bn in December.

McKevitt: “It’s important to remember that shoppers often look for great value and quality, not just the cheapest product. At Christmas especially, people want to treat themselves, and throughout the cost-of-living crisis, we’ve seen them turning to retailers’ premium own-label lines to do that in a way that’s more affordable.

"Sales of these goods were worth £582m in the latest month, and they are likely to double as Christmas edges nearer, topping £1bn in the month of December for the first time ever.”

Online grocery is the fastest-growing channel, home delivery up 11%
McKevitt: “... existing shoppers value the convenience and make more orders". On average, household online users now buy 3 shops a month, = 61% of their grocery spend.

Ocado had a record 2.1% share (12 weeks to 2nd Nov). At 15.9%, its highest sales growth (4 yrs since April 2021).

Meanwhile, Tesco and Lidl both added half a percentage point of share to their market share positions.

Lidl’s sales up 10.8% (12 week, share now 8.2%).

Tesco 28.2% of market sales up 5.9%.

Sainsbury's sales up 5.2%, share up to 15.7%.

Aldi 10.6% of the market, sales up 4.4%.

Iceland sales up 4.9%

Morrisons sales up 2.3%, market share down from 8.5% to 8.3% ( 0.1 percentage points ahead of Lidl.

Asda’s market share down from 12.6% to 11.6%, sales down 3.9%

Waitrose sales up 3.8%. Co-op sales fell 1.4% (cyber attack)

M&S grocery sales up 8.8%, fastest rate since June.

NamNews Implications:

• As can be seen, retailers are keeping inflation down via promotions.
• Without which, volume would drop off.
• Obviously piling on pressure on those retailers that cannot afford to optimise the mechanic…
• Meanwhile, switchers to premium own-label will prove expensive to win back to brands, inevitably.
• All of which piles increasing pressure on Asda, and to an extent, Morrisons.

Waitrose Unveils New Concept Store For ‘Food Lovers’

Waitrose has opened its first ‘Home of Food Lovers’ concept store as part of its drive to elevate and differentiate its offer in order to stand out from its rivals.

The 27,000 sq. ft. supermarket in Newbury has been selected as a testing ground for several new initiatives and forms part of the grocer’s £1bn investment programme to enhance its existing 317 sites and open new ones. Waitrose noted that once tested with customers, new concepts will be introduced to other shops and become part of the blueprint for new outlets.

The revamped Newbury store features a five-metre Cheese Island, a first for the retailer’s estate, showcasing a curated selection of nearly 100 speciality cheeses. There are also expanded and modernised counters offering a new ‘Meal Maker’ service, where fishmongers and butchers prepare cuts with free rubs and marinades. The area also includes a new Dry-Aged beef counter.

An expanded in-store bakery features a new partnership with premium brand Ole & Steen, which will be rolled out to 35 stores, while the overhauled fruit and veg department focuses on organic, Fairtrade, and regeneratively-farmed produce.

The Newbury store also features 10 new brand partnerships with artisan producers, including Tap Social, Agua De Madre, and The Good Crisp Company.

A new ‘Food Lovers Hub’ offers recipe inspiration, with all ingredients and wine pairings grouped together.

Meanwhile, the delicatessen counter provides a personalised grazing box service and a ‘Fine & Rare’ wine section includes a blast wine chiller that cools bottles to the perfect temperature in minutes.

The supermarket is powered by new technology, including electronic shelf labels (ESLs), cash automation technology, and shelf-edge cameras that help identify stock gaps.

Meanwhile, staff at the Newbury store will be the first to trial a ‘first-to-market’ AI app created by Waitrose, which will provide them with up-to-date product information, enabling them to offer customers a better service.

Responding to either text or voice requests, the app will give shop floor staff answers on product availability and location, nutrition and sustainability, also cooking and recipe recommendations.

“Today is a significant move forward in our strategy to be the undisputed Home of Food Lovers,” said Tina Mitchell, Interim Managing Director for Waitrose.

“We’re deliberately investing in the joy of food – in expert cheesemongers, butchers, and fishmongers, as well as our cafés and bakeries – a strategic choice that champions the in-store experience for our customers.

This vision is backed by our largest-ever tech investment, using AI and new systems to ensure a seamless customer experience, one that has our Partners and their passion for food right at its heart.”

NamNews Implications:

• Waitrose’s best ideas on show in a single outlet.
• Hopefully, rivals’ and suppliers’ store checkers will not outnumber shoppers…

Tesco Bolsters Rapid Delivery Offer With Just Eat Deal

Tesco has agreed a partnership with Just Eat to support the expansion of its on-demand delivery offering in the supermarket and convenience sectors.

The deal will see Just Eat Go, the firm’s white-label delivery service formerly known as Jet Go, support not only Tesco Whoosh but also its One Stop chain and Booker’s symbol brands – Premier, Londis, Budgens and Family Shopper.

Just Eat launched its Delivery-as-a-Service platform offering in June, initially with Co-op. It enables brands to receive customer orders through their own websites and apps while tapping into Just Eat’s technology infrastructure and network of independent couriers to offer on-demand and scheduled deliveries to customers’ homes.

Just Eat Go’s Commercial Director, Tom Baxter, noted that the collaboration with the grocery giant highlighted the flexibility of its fulfilment network.

“Our new partnership with Tesco demonstrates the diverse range of retailers who are utilising our service, from community retailers such as One Stop, to big brand grocers including Tesco Whoosh,” he said.

“With Just Eat Go we empower our partner brands to respond even more quickly to the rising demand for rapid fulfilment, something that will be particularly important as we head towards the busy festive season.”

Tesco also works with Uber Eat’s white-label offering Uber Express and last-mile delivery firm Stuart to deliver Whoosh orders. Last week, it was revealed that Whoosh is starting to offer its customers the opportunity to do full-basket shops by utilising Stuart’s network of car- and van-driving couriers.

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

In a results call with analysts last 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:

• In a nutshell, Tesco are:
• Growing online
• Increasing speed of quick-response retail
• Outsourcing high-cost fulfilment
• And making it work financially
• All at the expense of rivals

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?)

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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..?

Tesco And Lidl Continue To Make Biggest Market Share Gains As Squeezed Consumers Hunt For Deals

Latest figures from Worldpanel by Numerator show take-home sales at UK supermarkets grew by 4.1% over the four weeks to 5th October, driven by grocery price inflation, which rose from 4.9% to 5.2%.

Spending on offers hit its highest level since April at 29.4% as consumers sought out deals to ease the burden on their wallets. This trend is expected to continue in the run-up to the festive season as retailers ramp up their promotions during the key trading period.

Worldpanel noted that online grocery sales grew by 12.0% compared with the same four weeks last year, making up 12.7% of the market – the highest share since March 2022. Over one in five households did their grocery shopping online at some point in September, marking a return to the popularity seen in the latter stages of the Covid pandemic.

Ocado remained the UK’s fastest-growing grocer over the 12 weeks to 5 October, with sales rising by 13.6% on the same period a year ago. The online retailer now holds a 2.0% share, matching its previous record high.

Lidl also saw double-digit sales growth (10.8%), taking the discounter’s market share to 8.2% – an increase of 0.5 percentage points, edging it closer to overtaking Morrisons.

Tesco again made the biggest share gain, climbing by 0.7 percentage points to take 28.3% of the market. Spending through its tills increased by 6.9%. Sainsbury’s saw its sales rise by 5.2%, lifting its market share to 15.3%.

Aldi maintained its 10.6% portion of the market after seeing spending in its stores rise by 4.3%. Waitrose’s share also remained stable at 4.4% after increasing sales by 3.7%, while sales of groceries at its key rival M&S were 7.7% higher.

Asda continued to lose share after recording a 3.2% drop in sales, while Morrisons recorded growth of just 1.7%.

Fraser McKevitt, head of retail and consumer insight at Worldpanel, highlighted that households are now juggling a lot of different things when choosing what and where to buy their groceries. Cost remains towards the top of the list as price rises accelerate, but the research group’s data reveals how consumers and retailers are also balancing concerns around health and sustainability.

At the beginning of this month, new regulations came into force in England restricting multibuy deals on products high in fat, salt or sugar (HFSS). McKevitt commented: “Retailers have had this HFSS legislation in their sights for several years, and they’ve been adapting, with consumer habits already shifting as a result. Three years ago, 28% of promotional spending on crisps was through multibuy offers, but it’s come right down since then to just 8% in the month to 5th October. There’s a similar story in the cereal aisle with promotional spending on multibuy deals down from 18% to 5% during the same time period.”

On the subject of sustainability, new Worldpanel research shows that 50% of British shoppers believe that environmental issues are a critical threat to humanity, with the potential to shape the way they shop. McKevitt said: “People are worried about environmental issues, but the data uncovers a growing sense of pessimism among consumers about their ability to really make a difference. There’s an opportunity for brands and retailers who can make it easier to make sustainable choices, and people seem to be willing to adapt. One in two say they would accept plainer packaging for a product that they trusted was better for the environment, while 54% would even be willing to bring their own packaging.

“However, value for money is still a big consideration, and just 9% of people are happy to pay more for items that are better for the planet. Only 3% say they would compromise on quality. Interestingly, concerns about microplastics are on the rise, with over 40% of British households saying they are increasingly worried about the impact on their health.”

NamNews Implications:

• Leading grocers growing share at the expense of Asda, Morrisons and Co-op…
• …has to be of constant concern to the three, despite constant driving for sales.
• Meanwhile, price inflation continues to grow value sales at the expense of volume.
• As consumers continue to shop around for deals (‘permanent’ changes in behaviour?)…
• …and (premium?) own label benefiting from diminishing brand premia.
• Going forward, the issue is to what extent fundamental changes in behaviour…
• …become ‘permanent’?

Asda Outlines Plans For Range Reset

Asda told suppliers at its annual conference in Leeds this week 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”.

According to trade publication The Grocer, the struggling supermarket’s recently returned Chief Commercial Officer, Darren Blackhurst, announced an overhaul of its commercial strategy at the event, with suppliers being told the reset would be based around SKU duplication removal, rather than a range cull, with a focus on core lines, more space and better buying.

In addition to a drive for greater simplicity, Blackhurst is reported to have said that Asda’s buyers would seek to reset the relationship with suppliers by focusing less on its troubles and spending more time building partnerships.

Meanwhile, Leighton reiterated Asda’s drive to become up to 10% cheaper than its traditional supermarket rivals, arguing that growth in the discount channel was limited for brands, given that Aldi and Lidl were continuing to prioritise own label.

Speaking to The Grocer after the event, Blackhurst said: “As we shared at the event, a strong Asda benefits everyone, and there is a big opportunity to build the right customer proposition together and unlock profitable growth.

“We’re focused on simplifying how we work by reducing duplication, making better use of space to sell more volume and improving choice by strengthening our own-brand and premium ranges. As we start to buy better and build better relationships with key suppliers, we can maximise efficiencies, reinvest in price, drive volume, and ultimately grow market share.

“We want to work with our suppliers constructively and in a collaborative way to improve the offer for the 20m customers who shop with us every week. Our buying teams are looking forward to getting out to meet our suppliers in the coming weeks to build on their plans.”

NamNews Implications:

• SKU duplication removal, rather than a range cull…
• …a focus on core lines, more space and better buying…
• …more time building partnerships…
• …to build the right customer proposition together.
• And all against the clock.
• Over to you…

Aldi Rolling Out Reduction Zones

Aldi is rolling out dedicated reduction zones across its stores in the UK to make it “even easier for shoppers to find fresh food bargains”.

The marked areas will feature discounted bread, fresh produce, and other perishable items nearing their use-by date. Items are discounted throughout the day, allowing shoppers to save on products that might otherwise go unsold.

The discounter stated the move was part of its commitment to making food more affordable, while tackling waste in its operations.
“Our customers already know they can rely on us to provide unbeatable value, but our new reduction areas will make it even easier to pick up a last-minute bargain,” said Luke Emery, National Sustainability Director at Aldi UK.

“By creating dedicated reduction zones in store, we’re helping point shoppers towards quality food at cheaper prices, all while cutting down on food waste.”

NamNews Implications:

• Using food waste prevention is a clever way of discounting within a ‘best price’ model.
• i.e. Aldi can thus maintain the integrity of their main offering:
• - they launch at their best value price, not possible to go lower...
• …whilst doing good for customers in need.