Asda Launching New Customer Insight Platform That Supports Evolution Of E-Commerce Category Management

Asda is preparing to launch a new customer insight and collaboration platform, created in partnership with eStoreBrands, an e-commerce data analytics specialist.

According to trade publication Retail Week, Asda Xpert will launch next week with the aim of helping the supermarket group and its suppliers “understand and more effectively meet the needs of its online shoppers”.

A source is quoted as saying that the new platform will provide brands with “advanced data-driven insights, enabling them to optimise product performance, track market trends, and make smarter category decisions for Asda.com”.

The new platform will also “integrate digital shelf analytics and real-time performance data” in order to help “suppliers drive mutual category growth and improve decision-making”.

It is claimed that Asda Xpert will be a major step forward in the “evolution of e-commerce category management” and will provide brands with the tools they need to “maximise growth, optimise strategies, and better serve customers in an increasingly competitive online retail space”.

Barney Burgess, Asda’s VP of Online, told Retail Week: “We’re really excited about this new partnership between Asda and eStoreBrands. Leveraging an e-category management approach, Asda Xpert will enable brands to identify new insights from our data, driving more informed actions which will accelerate growth for the brands as well as Asda.com”.

eStoreBrands’ VP of product strategy, Francis Nicholas, added: “Having spent years working for brands like P&G and Nomad Foods, I know first-hand how valuable this kind of insight is.

When working with retailer buying, category, and ecommerce teams, this was the type of solution which was missing. Partnering with Asda on Asda Xpert is incredibly exciting, and we look forward to supporting brands in making data-led decisions that benefit both suppliers and Asda.”

NamNews Implications:

• Asda are patently pressing all the right buttons.
• And innovating with leading-edge tools.
• The key issue remains that of sufficient EBITDA improvement…
• …fast enough to beat the clock.
• Fingers crossed.

Sainsbury’s Shakes Up Management Team

Sainsbury’s has made new appointments and reshuffled its existing leadership team to support the delivery of the group’s ‘Next Level’ strategy.

Tracey Clements will join the retailer at the beginning of September in the role of Chief Retail, Logistics and Supply Officer. The newly created position unifies Sainsbury’s Retail, Digital, Customer Experience, Supply Chain and Logistics activities under a single leadership.

Clements’ past experience includes 17 years with Tesco, where she held a number of leadership roles, including Store Director, Managing Director of Tesco Express, and CEO of One Stop. She then became Chief Operating Officer for Boots UK & Ireland, and most recently, was Senior VP of Mobility and Convenience Europe at petrol forecourt operator BP.

Meanwhile, accountability for Technology at Sainsbury’s is moving to Mark Given following the recent departure of its Chief Retail and Technology Officer, Clodagh Moriarty, to homewares chain Dunelm.

Given will become Chief Technology, Marketing and Data Officer from 1st September, supporting Sainsbury’s drive to utilise technology and AI in delivering “outstanding customer experience, leveraging the power of data and insight and unlocking future opportunities at scale.”

Rob Barnes will join Sainsbury’s in early October as Chief Technology Officer, reporting to Given. Barnes left Asda in April, having supported the group’s ‘Project Future’ IT separation from its previous owner, Walmart.

Sainsbury’s also confirmed that Rhian Bartlett will become its Chief Commercial and Sustainability Officer in an expanded role, bringing together the group’s commercial and sustainability agendas under a single leadership. The retailer stated that by aligning commercial and sustainability leadership, it was “embedding sustainability at the heart of commercial decision making – ensuring both areas come together to support long-term value creation and environmental leadership.”

Meanwhile, Graham Biggart has been appointed Managing Director for Argos and Chief Strategy Officer. The move will see the chain’s retail and transformation teams report directly into Biggart, enabling an “even sharper focus on delivering the More Argos, more often transformation plan and accelerating Argos’ growth”.

Biggart will continue to hold accountability for shaping the group’s future strategy, whilst his prior responsibilities for Sainsbury’s supply chain and logistics will transition to Clements to align more closely with its retail operations and customer experience.

“I’m delighted to welcome Tracey to our Operating Board. Her breadth of experience, energy and customer-first mindset make her an outstanding addition to our leadership team, and I’m confident she will play a pivotal role in accelerating our plan and shaping the next chapter of our Sainsbury’s business,” commented Chief Executive Simon Roberts.

“Alongside Tracey, we’re strengthening our leadership across Technology, Commercial and Sustainability, all areas that are critical to delivering our Next Level strategy. With Rhian taking forward our combined commercial and sustainability ambition, Mark uniting technology, marketing and data, Graham leading our group strategy and the transformation of Argos, and Rob joining us as CTO, we’re building the momentum and the capabilities to move faster, serve customers better and unlock long-term growth across the group.”

Last month, Sainsbury’s reported better-than-expected first quarter sales, benefiting from warm weather and a disruption at rival Marks & Spencer. Its shares are up 8% so far this year.

NAM Implications:

• Anyone close to Sainsbury’s knows that these are fundamental changes and enhancements to Sainsbury’s ability to accelerate future growth in an unprecedented retail environment…
• …with potential rewards for suppliers that align with the retailer’s enhanced team.
• i.e. time to reconfigure supplier-retailer networks.
• Starting from where new and current team members have been…
• …and anticipating their thinking going forward.

Aldi To Open One New Store Every Week For The Rest Of The Year

Aldi has revealed that it will be opening an average of one new store a week in the UK between now and the end of 2025

New store locations opening in the coming months include:

• Airfields, Welsh Road, Deeside
• Rockingham Road, Market Harborough, Leicestershire
• Fulham Broadway, London
• Pacific Drive, Eastbourne, East Sussex
• Mafon Road, Nelson, Treharris
• Ashford, Waterbrook, Kent
• Commercial Street, Shoreditch, London
• Philadelphia Lane, Houghton le Spring, Tyne and Wear
• Mill Road, Meadowfield, Durham
• Pendle Drive, Litherland, Liverpool
• Ringwood Road, Brimington, Chesterfield

The discounter is investing around £650m across Britain in its store opening and refurbishment programme for 2025.

“At Aldi, our goal is to make sure people across the UK have access to affordable, high-quality food, and opening new stores is key to making that happen,” said Jonathan Neale, Managing Director of National Real Estate at Aldi UK.

“We’re now opening an average of one new store a week for the rest of 2025, showing just how ambitious our plans are to build a store network that will help us reach millions of new customers.

But it’s not just about openings – it’s also about making sure we have the best-paid teams in place to run them.”

At the end of last month, Aldi revealed that it was set to become the first supermarket in the UK to pay store staff at least £13.00 an hour as it steps up its recruitment drive to support its expansion plans.

NamNews Implications:

• That’s 20 new stores in anyone’s language…
• …for a discounter growing sales and market share.
• Time for suppliers in many categories to question whether they are doing enough to access and maintain their fair share of Aldi business, going forward...
• Worth a look?

Asda Closing In On Major Property Deal That Will Boost Recovery Funds

Asda is reported to be in advanced talks about a £400m deal to offload some of its real estate assets to an investment house to help fund its turnaround plans.

According to Sky News, Blue Owl Capital, a New York-listed asset management group, has emerged as the frontrunner to buy roughly 20 Asda supermarkets and lease them back to the struggling retailer. Sources indicated that a deal could be formally agreed upon within weeks.

Asda has undertaken sale & leaseback deals in the past, notably in 2023 when it struck a £650m deal with US-based Realty Inc.

A spokesperson for the retailer declined to comment on the talks with Blue Owl Capital but said: “Sale & leaseback [transactions] have been a feature of the retail industry for many years.

“While maintaining a strong freehold base remains central to Asda’s property strategy, we will consider suitable opportunities to unlock value from our property portfolio as part of our material programme of investment into the business.”

While sales at Asda are still in decline, recent industry data suggests that there are signs of recovery after significant investment in cutting prices and improving its offering.

NamNews Implications:

• Sale & leaseback represents a capital gain for a struggling business.
• But it can add an additional rent burden…
• Asda need the money but is obviously intent on keeping sale & leaseback to a minimum.
• (keeping in mind an exit strategy that will optimise the ‘eventual’ sale/refloat of the business)
• Meanwhile, fingers crossed…

Supermarket Price War Impacting Profits At Iceland

Intense price competition in the supermarket sector is impacting profit growth at frozen food specialist Iceland.

According to The Telegraph, the retailer has recently informed bondholders that its underlying profits increased by only 0.6% to £317.6m in the year to the end of March 2025, compared to a 24% rise in the prior year.

Revenues were largely flat at £4.2bn, although its previous financial year – when sales rose 6.6% – was boosted by an additional trading week. On a comparative 52-week basis, sales were up 3% this year.

The report noted that the profit slowdown follows Iceland pushing to keep prices lower as supermarkets battle to attract cash-strapped shoppers.
Iceland has been stepping up its programme of multibuy promotions.

This meant that while the number of items it sold last year increased by 5.3%, it did not see a rise in value sales.

Credit rating agency Fitch said shoppers continued to turn to Iceland for value “despite heightened competition”. However, its market share has remained relatively flat in recent years at around 2.3%, with latest industry data from Worldpanel by Numerator showing the group’s sales grew only 2.8% over the 12 weeks to 13 June, well behind the leading supermarket multiples and discounters.

Fitch added: “We expect Iceland’s product offering to remain competitive for UK food consumers with weaker spending power.”

However, the credit ratings agency raised concerns over Iceland’s profitability, suggesting the chain would have to continue investing in price cuts at a time when it is battling higher costs. Fitch said: “The company, along with other UK-based retailers, will be hit by the rise in National Insurance and minimum living wage contributions from [this year], which we estimate will result in an additional cost of £50m.”

Iceland’s Chairman, Richard Walker, said earlier this year the National Insurance hike had “added greatly to the cost of business”.

Meanwhile, Iceland’s Chief Executive, Tarsem Dhaliwal, said in April that the company was bracing for surging food costs. Speaking to trade publication The Grocer, he noted that the biggest concern was rising prices being imposed by its suppliers.

He said: “The reality is that we have to be conscious of the fact our suppliers are going to pass the costs onto us, literally straight away. We can’t absorb all that, I don’t think any retailer can, so there’s going to be food inflation.”

NamNews Implications:

• Consumers are shopping around for value via a combination of promos and own-label ‘equivalents’.
• i.e. business is there for the asking…
• …meaning Iceland have had to take a hit on profits to attract their fair share.
• With more cost increases in the pipeline…
• …Iceland are signalling the inevitability of having to raise shelf prices.

Asda Planning Major Upgrade To Stores In Yorkshire

Asda has marked Yorkshire Day (1st August) by unveiling a major store investment programme in its home county as part of its drive to improve the in-store experience for its customers.

The struggling supermarket is investing £7.2m to upgrade stores in Kingswood, Harrogate, York, Pudsey, and Keighley by the end of 2025.

Each store included in the programme will benefit from full shop floor refurbishments, including a “simpler and more intuitive” layout, as well as new lighting and signage – all designed to modernise the shopping space.

An additional £4.6m will be invested in two stores in the surrounding area – Grimsby and Stockton – with the retailer aiming to extend the programme to more UK locations next year.

Work will begin in most stores in September and is expected to take around seven weeks per store.

“We’re proud to continue investing in the communities we serve – especially in Yorkshire, where our story began 60 years ago,” said Liz Evans, Chief Commercial Officer – Retail and Non-Food.

“Following the successful refurbishment of our Pilsworth store earlier this year, we’re pleased to share our plans to modernise these Yorkshire stores and further enhance the shopping experience.”

While sales at Asda are still in decline, recent industry data suggests that there are signs of recovery after significant investment in cutting prices and improving its offering.

NamNews Implications:

• Logical for Asda to invest in its stronghold.
•  And if they can make it work there, they can make it work anywhere…’
• Hopefully....
• But the real issue is Asda’s fight against the clock…
• …as stakeholders await the EBITDA 'bottom line' impact.

Lidl Overtakes Morrisons In Food & Drink Share Ranking

Lidl is now the UK’s fifth-biggest supermarket in terms of food and drink sales, overtaking Morrisons.

According to Worldpanel data seen by trade publication The Grocer, the discounter’s share of sales of fresh, chilled and ambient groceries, but excluding alcohol, household, toiletries and healthcare, was 7.7% over the year to 13 July, compared with Morrisons’ 7.6%.

The report said that Lidl’s food and drink share had risen from 7.3% in the previous 52 weeks, after its sales grew by 10.1%. In contrast, Morrisons’ food and drink share has fallen from 7.8% after its sales only rose by 1.5%.

The Grocer noted that the food and drink figures are different to those included in Worldpanel’s monthly published market update, which covers all expenditure through store tills, excluding petrol and in-store concessions.

Those figures show Morrisons narrowly retaining its lead, with a market share of 8.4% over the 12 weeks to 13 July, compared with Lidl’s 8.3%, which was a record for the discounter after another strong period of growth.

The report said that Lidl is likely to overtake Morrisons in those numbers in the new year, given its expansion plans. The discounter recently revealed that it will open its 1,000th store in the UK this November, 31 years after making its market debut.

Responding to the figures published by The Grocer’s, a spokesperson for Morrisons is quoted as saying: “The numbers are partly a function of new supermarket openings, where we haven’t added new space for some time, and the survey doesn’t capture all of the growth we are seeing in convenience and wholesale, and our Myton manufacturing business.”

A spokesperson for Worldpanel added: “We do not publish retailer market share data for select categories. Our grocery market share release provides a full view of grocers’ performance, including all expenditure through store tills except petrol and in-store concessions.”

NamNews Implications:

• Overtaking Morrisons’ share of sales of fresh, chilled and ambient groceries will not go unnoticed where it matters.
• Especially in Lidl and Morrisons organisations.
• With the likelihood of Lidl overtaking in the headline market share numbers in 2026, Morrisons will have a cause of even greater concern.
• At which point, suppliers may begin to weigh their options regarding the relative levels of investment in either retailer.
• A pointer for all…

Supermarket Loyalty Waning

Reward, a customer engagement and commerce media specialist, has unveiled new consumer spending insights that confirm a continued decline in brand loyalty among UK grocery shoppers.

The data shows switching behaviour among shoppers has accelerated since 2023, with June this year marking a new high – 41% of consumers moved away from their primary grocer. Discounters are benefitting most from this shift as shoppers manage their budgets, claiming a market share of 20% in June, higher than their 2025 average of 19.3%.

Meanwhile, cross-shopping is now the norm, with 80% of consumers using two or more grocers in June and the average shopper visiting 3.2 different grocers.

Reward noted that these behaviours reflect the growing importance of price, availability, and perceived value in shaping grocery choices – key themes explored in its newly released report – The Trends Reshaping Grocery Spend – which analyses six years of evolving consumer behaviour.

The insights highlight a series of trends that have become firmly embedded in how UK consumers shop for groceries. Key takeaways include:

• Top-up shopping dominates: In 2025, 67% of grocery transactions were smaller, frequent shops – up from 61.5% in 2019. The big weekly trolley shop is increasingly being replaced by ‘little and often’ purchases that reflect immediate household needs.
• Online is embedded: Online grocery shopping accounted for 11.4% of spend in June, a figure that has remained stable post-pandemic, indicating online is now a standard channel for all types of shopping missions, not just a contingency.
• Value is more than price: While discounters gain ground, full-range grocers that invest in personalised supermarket loyalty schemes and convenient multichannel experiences have maintained around 42% of market share since 2019. Consumers are weighing price alongside quality, convenience, and the benefits offered through loyalty.

Paul Jones, SVP data & insights at Reward, commented: “Our insights confirm a key trend that’s been building: loyalty isn’t dead – it’s evolving, and it must be earned. Grocers can no longer depend on routine habits; today’s shoppers are selective, value-driven, and quick to switch.

“In this environment, deeply understanding customer behaviour and market dynamics is more critical than ever. Retailers that harness data-driven personalisation and activate contextual spend insights through commerce media strategies will be best placed to drive meaningful engagement, long-term loyalty, and sustained growth in an increasingly complex landscape.”

NamNews Implications:

• Worth keeping in mind that the same could be said of supplier branding.
• i.e. Brand loyals now prepared to ‘shop around’ for other brands and own-label equivalents in a search for real value, rather than ‘price’.
• More inclined to identify and criticise instances of shrinkflation and skimpflation.
• ‘paying more and more, for less and less)
• And prepared to ‘tell a friend’.
• Unprecedented change, indeed…

Pepco Hires Advisors To Oversee Poundland’s Transition To New Ownership

Weeks after striking a deal to sell Poundland to investment firm Gordon Brothers, Pepco Group has hired advisers to oversee the struggling discounter’s transition to its new owner through a court-sanctioned process that will involve store closures and job cuts.

According to Sky News, the company has drafted in FRP Advisory to act as an observer, with the High Court scheduled to sanction Poundland’s restructuring plan in the last week of August.

Under the proposed deal announced in June, 68 Poundland shops will close in the short term, along with two distribution centres. The retailer is also seeking rent reductions at other sites, ending its online operation, and reducing its food offer.

More shops are expected to be shut under Gordon Brothers over time, resulting in hundreds of job losses.

Barry Williams, Managing Director of Poundland, said at the time of the deal’s announcement: “It’s no secret that we have much work to do to get Poundland back on track.

“While Poundland remains a strong brand, serving 20 million-plus shoppers each year, our performance for a significant period has fallen short of our high standards and action is needed to enable the business to return to growth.

“It’s sincerely regrettable that this plan includes the closure of stores and distribution centres, but it’s necessary if we’re to achieve our goal of securing the future of thousands of jobs and hundreds of stores.”

NamNews Implications:

• Poundland’s restructuring plan is both logical and essential…
• …the only realistic way of moving forward.
• i.e. Poundland has to be cut to fit available demand, as a basis for recovery and growth.
• Hopefully all stakeholders will share that view…

Private Label Seeing Strong Growth In The US Grocery Market

During the first half of 2025, private label value sales in the US increased 4.4% in all outlets vs the same period last year, compared to a 1.1% gain for national brands, according to Circana data provided to the Private Label Manufacturers Association (PLMA).

In unit sales, store brands posted a 0.4% increase, while national brands fell 0.6%.

“It’s exciting to see store brands continue on a strong trajectory this year,” said PLMA President Peggy Davies. “Shoppers are clearly recognising the unbeatable combination of quality, value, and innovation that store brands bring to the table.”

Overall, store brand market share for the first half of the year increased to 21.2% for dollars and 23.2% for units, both all-time highs.

Looking at departments, store brand dollar sales for the year to 15 June increased in seven of nine sections, led by Refrigerated, which was up 13%, followed by Beverages (+4.8%), Frozen (+3.8%), General Food (+2.5%), Pet Care (+2%), Home Care (+1.4%), and Beauty (+1.1%). General Merchandise (-0.4%) and Health (-0.1%) were down.

In unit sales, store brands were ahead in all but one department, with Beverages (+4.2%) showing the way, followed by Home Care (+3.4%), Pet Care (+3.3%), Frozen (+2.1%), Refrigerated (+1.3%), General Food (+1.2%), Beauty (+0.4%), and Health (+0.3%). Only General Merchandise (-2.5%) was off.

PLMA projects total store brand sales for 2025 will approach $277bn, compared to a record $271bn in 2024.

“Now is the time to lean in,” Davies said, pointing to the importance of retailer and supplier collaboration in fueling further growth.

She urged industry stakeholders to participate in PLMA’s upcoming educational and networking programs, including the annual Private Label Trade Show in November and various executive development initiatives.

NamNews Implications:

• Evidence of a slow but definite switch from brand to own label.
• And if macroeconomic/business trends continue ‘as usual’…
• …stakeholders might anticipate the current US brand/own-label volume split of 77/23…
• …could approach UK volume 40/60, eventually.
• (Meanwhile, worth considering the UK’s possible settling point?)

Grocery Price Inflation Continues To Accelerate; Lidl Reaches Record Market Share

Latest figures from Worldpanel by Numerator: UK take-home sales up 5.4% during the 4 weeks to 13 July compared to 2024 (accelerating price inflation, with the highest level since January 2024 at 5.2%).

The average household spends £5,283 each year at supermarkets, which means the latest rise could add £275 to people’s grocery bills if their shopping habits stay the same.

Fraser McKevitt, head of retail and consumer insight: “Own label products, which are often cheaper, continue to be some of the big winners and, in fact, sales of these ranges are again outpacing brands, growing by 5.6% versus 4.9%."

Inflationary worries are not only changing what we buy food but also its preparation (simpler meals to save money, almost seven in ten dinner plates include fewer than six components).

McKevitt said: “Innovation is absolutely vital to help grocers keep up with new trends and make sure they’re meeting shoppers’ needs as behaviours and priorities shift."

The drinks aisle:
Iced coffee has soared in popularity in recent years, and with summer temperatures rising, sales were up this month by 81%.

Kombucha drinks sales more than doubling over the latest four weeks vs 2024. 

No and low alcohol drinks continue their gradual march into the mainstream too, with nearly seven in every 100 households buying a product this month, pushing sales up by 21%.

Individual retailers:
Lidl reached a record high market share this period at 8.3%, gaining 0.5 percentage points as it attracted more than half a million new customers to its stores.

Aldi sales up 6.3%, share up to 10.9%.

Tesco share 28.3% after sales grew by 7.1%, the fastest rate since December 2023.

Sales at Sainsbury’s increased by 5.3%, raising its market share to 15.1%.

Matching its previous share high of 2.0%, Ocado was again the fastest-growing grocer in the UK. Its sales rose by 11.7%, exceeding the overall online market growth rate of 5.7%.

Over the past 12 weeks, online accounted for 12.0% of all sales at the grocers, with 23% of households making at least one virtual shopping trip.

Meanwhile, grocery sales at M&S were 6.5% higher than a year ago.

Spending through the tills at Morrisons nudged up just 1.0%, with its market share falling to 8.4%.

Despite its turnaround efforts, Asda’s share of the market slipped to 11.8% after a 3.0% fall in sales.

NamNews Implications:

• Consumers are patently being affected by the 5.2% inflation ‘peak’ (and more to come)…
• …in terms of more savvy food spending and eating carefully to conserve cash.
• Temporary moves (like brand to own label equivalents)…
• …may prove difficult/expensive for suppliers to reverse.
• Innovation in some categories may help.
• Lidl continues to find top of mind for retailers and suppliers (raising questions re their role in trade strategies?)
• Meanwhile, the discounters’ joint share of 19.2%…
• …if not raising concerns, should be.
• By the same token, the falling shares of Morrisons and Asda cast a shadow…

Aldi Overtakes Asda To Become Second Biggest Supermarket By Volume In Scotland

New data from Kantar shows that Aldi has overtaken Asda for the first time to become Scotland’s second-largest supermarket by volume.

Over the 12-week period to 15 June, the discounter’s volume share of the Scottish grocery market increased to 11.7%, commanding a higher share than Sainsbury’s (7.4%), Co-op (8.9%), Morrisons (8.9%), Lidl (9.6%), and Asda (11.5%), behind only Tesco (25.2%).

Aldi noted that its growth in Scotland was testament to its commitment to Scottish sourcing, working with 90 local suppliers and stocking 450 products from the country.

This was recognised at the 2024 Scotland Food & Drink Excellence Awards, where Aldi won the ‘Best for Scottish’ award for the third time. Additionally, results from the last three NFU Shelfwatch surveys ranked Aldi as the top supermarket in Scotland for stocking Scottish produce.

“Reaching this milestone is a proud moment for Aldi in Scotland, reflecting the strength of our continued growth,” said Sandy Mitchell, Regional Managing Director at Aldi Scotland.

“This data reveals the trust customers are placing in us every day, turning to us for top-quality products at affordable prices.

Our continued success is only possible thanks to the dedication of our people and the strong relationships we’ve built with our Scottish suppliers, allowing our customers to enjoy great produce while supporting homegrown businesses.”

NamNews Implications:

• Asda are unlikely to sit on the sidelines…
• …either in Scotland (or the rest of the UK).
•  i.e. they will take direct action in each market.
• Meanwhile, Sainsbury’s, Co-op, Morrisons and Lidl cannot just let it happen.
• i.e. anticipate some very active retailing in Scotland…
• …sooner rather than later.
• More importantly, what part are you prepared to play?

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Poundland Plays Down Report That It’s Suffering Stock Issues Due To Suppliers Toughening Terms

Poundland has hit back at reports that it is struggling to keep its shelves stocked after several major suppliers tightened credit lines and payment windows amid uncertainty over the discounter’s future following its sale to investment firm Gordon Brothers last month.

Its new owners proposed restructuring plan: closing 2 DCs, at least 68 of its nearly 800 stores, seeking rent reductions on other sites, planning to stop selling frozen food and reduce its chilled food offer.

On Thursday, Pepco Group revealed Poundland revenues down 10.3% to €347m (-7.1% like-for-like) during the quarter to 30 June.

A report by The Times suggested that Poundland’s current situation has spooked suppliers. Sources close to the situation told the newspaper that several major consumer goods companies have cut their payment windows for the retailer, leading to empty shelves in some stores.

Gordon Brothers is currently seeking court approval for its restructuring plan. At a convening hearing on Tuesday, a judge approved the classification of creditors under the plan. A final ruling is expected by the end of August.

The Times said that although suppliers are not formally part of the court-led restructuring process, Poundland has started briefing them on its recovery plans. A supplier meeting was held on Wednesday at its head office in Walsall.

A spokesperson for Poundland is quoted as saying: “Our expectation is that any credit limitations for suppliers will unwind in time after we have the opportunity to implement the restructuring and recovery plan we shared last month. We have been briefing suppliers this week about those plans and appreciate the support they’re providing.”

Poundland has since tried to play down The Times report. A spokesperson told trade publication The Grocer that P&G had never placed any restrictions on the chain’s supply and Nestlé had actually increased its limits on Wednesday this week, when the retailer held the supplier meeting.

They said Poundland received “very strong support” for its recovery plans when it briefed hundreds of suppliers at the gathering. “It’s very firmly business as usual despite the restructure plans,” they stressed.

NamNews Implications:

• Poundland is ‘cutting to fit’ profitable demand…
• …as any responsible business would do.
• Likewise, cautious suppliers will attempt to reduce their exposure to perceived risk.
• This means that Poundland will need to adjust to a new supplier-Poundland mix…
• …that will allow the retailer to proceed to the next stage of its recovery.