Growth Accelerates At Discounters And Market Leaders But Morrisons And Asda Continue To Struggle

 Kantar: take-home sales UK’s Mults up 3.6% (4 weeks to 23-2-2025, weaker than the 4.3% of the previous month), promos kept price inflation at 3.3%.

Items bought on offer = 27.6% of sales, up 0.3 percentage points vs 2024. Premium own-label up 13.3% this month.

In the 12 weeks to 23 Feb, Ocado was the fastest-growing retailer for the 10th consecutive month, spending up by 9.6% at 1.9% market share.

M&S grocery sales up 12.2% in bricks & mortar stores.

Aldi had 377,000 more shoppers, a 10.3% share, sales up 4.9%, highest since Jan 2024.

Lidl market share up to 7.3%, sales up 8.1% vs 2024.

Morrisons’ share down to 8.6%, store sales flat vs 2024.

Asda sales down 5.0%.

Five years since first Covid-19 UK lockdown in the UK, Kantar outlined how consumers’ grocery habits have evolved since then.

Sally Ball, Kantar head of retail: “Back in 2020, we didn’t know just how big an impact the Covid-19 pandemic would have on our lives, but five years on we can get a picture of its lingering effects on consumers.

"We haven’t gone back to old patterns and shopping trips remain below pre-pandemic times. Households made one less visit to the supermarket in February 2025 than in 2020, while online shopping appears to have stuck, taking a 12.3% market share this month versus 8.6% in February 2020.

“...consumers have moved to simpler eating habits (convenience), taking less time to prepare meals, and prep time in the evening, for example, has declined from almost 34 minutes in 2020 to 31 minutes in 2024.”

Kantar consumption data:

People now using fewer different ingredients when making food (lunch and evening). Consumers snacking less often, dropping over 330m occasions in 2024 versus 2020.

Ball added: “Of course, it’s hard to untangle the cost of living crisis from any post-Covid analysis, and the other big headline of the past few years has been consumers’ hunt for value. You might think that people would shop around more to find the best deals but in fact, that’s not the case.

"Households visited just under five different grocers this month, the lowest level in February since 2021. The growth of supermarket loyalty schemes is partly behind this as shoppers use them to unlock exclusive discounts.”

NamNews Implications:

• The key standout has to be the growing shares of Tesco, Sainsbury’s, Aldi and Lidl…
• …at the expense of Asda and Morrisons.
• Causing us to wonder if there is any way back for Asda and Morrisons?
• The other issue has to be the unprecedented impact of Lockdown on businesses everywhere…
• Resulting in the dilution of consumer belief in ‘everything’.
• Causing consumers to view with suspicion the size of the brand premium when private label ‘substitutes’ were found not to be as much of a compromise as anticipated.
• Begging the question: How much will brands have to spend to win back loyalty?

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Morrisons Bolsters Management Team With Execs From Lidl, Asda And Carrefour

Morrisons is further strengthening its senior management team with three new hires and two internal promotions.

Matt Heslop has been appointed as Director of Convenience and Wholesale, starting early next month. He has worked at Lidl for over 20 years in a number of roles, most recently as Chief Operating Officer and Board Member of Lidl UK.

Matt McLellan has been hired for the newly created role of Group Data and Media Director, which he take on later this year. He will join Morrisons from Asda where he was Vice President – Customer. At Asda, McLellan was responsible for the design and launch of their loyalty proposition and for developing a range of high-profile customer programmes and initiatives.

Meanwhile, Bruno Lebon has been appointed as Group Trading Director, Non-Food, working with Andrew Staniland who started in early February as the supermarket’s Group Trading Director. Lebon has over 39 years of experience at French grocery giant Carrefour, most recently as Executive Director of Supermarkets and Hypermarkets.

All three new hires will report directly to Chief Executive Rami Baitiéh.

Separately, Martin Dawson, who in February last year was appointed interim Operations Director – Retail, has now formally been appointed as Group Retail Director.

Charlotte Exell, the Online Operations Director, has been promoted to take on full responsibility for the Morrisons Online offer in the newly created role of Online Director.

In addition, Rachel Eyre, Chief Customer and Marketing Officer, will be returning to Morrisons on 3rd March from maternity leave.

Baitiéh commented: “I’m very pleased to welcome three outstanding retailers to the Morrisons leadership team and to warmly welcome Rachel back from her maternity leave. All the new joiners have exceptional records in their fields and bring deep experience, a history of delivering growth and a clear customer focus. As Morrisons continues its re-invigoration and growth, their skills and their passion for the customer will make them a powerful addition to our team.

“Martin Dawson has made a significant impact in his new role over the last year and I am delighted to confirm him in the key role of Group Retail Director. And Charlotte Exell has played a vital part in the recent growth of our online business and I’m confident that under her leadership Morrisons.com will go from strength to strength.”

The appointments come weeks after Morrisons posted its strongest quarterly sales growth figures since the start of 2021 as Baitiéh’s turnaround programme picks up speed.

NamNews Implications:

• Significant management changes at Morrisons.
• All wanting to flex and apply their experience optimally.
• Maybe time for Morrisons’ suppliers to reassess team fit with the new lineup…
•  …or risk rivals moving first?

Tesco has confirmed that it will close 10 of its in-store pharmacies later this year.

Tesco has confirmed that it will close 10 of its in-store pharmacies later this year.

The group has not revealed which locations will be impacted or when they will shut, but it stated that the affected pharmacies will continue to operate as normal until their closure.

A spokesperson for Tesco said: “Following a comprehensive review, last month we took the difficult decision to close a small number of our pharmacies later this year, in line with customer demand.

“We remain committed to providing our customers with the very best pharmacy services and continue to have a network of over 350 pharmacies across the country open and ready to help.”

The move comes two years after the supermarket chain announced that it was closing eight of its in-store pharmacies. The locations were all 100-hour pharmacies, and Tesco said at the time that its decision was because “the branches were not seeing sufficient customer demand to sustain their long opening hours”.

At the end of last year, Tesco started partnering with leading healthcare providers to create a new concept that offers shoppers access to more health services in its supermarkets.

In recent years, the wider pharmacy sector has been hit hard by funding cuts, with 222 pharmacies in England closing their doors in 2024 – the second-highest annual closure rate on record.

NamNews Implications:

• For ‘in line with customer demand’…
• …read insufficient sales plus funding cuts.
• Leading to insufficient profitability.
• Resulting in Tesco following national trends in pharmacy outlet closures.
• Until supply meets profitable demand…

B&M Announces Departure Of CEO After Cutting Profit Guidance

Discount retailer B&M issued another profit warning today due to tough trading conditions, while announcing that its Chief Executive Alex Russo would step down after two and a half years in the role.

Just weeks after it narrowed its profit view following a disappointing Christmas period, B&M said today that its adjusted EBITDA was now expected to be in the range of £605m to £625m – down from the previous estimate of £620m to £650m.

The company stated that the lower forecast “reflects the current trading performance of the business, an uncertain economic outlook and the potential impact of exchange rate volatility on the valuation of our stock and creditor balances, which is a non-cash item.”

In recent months, most of the UK’s major retailers have warned of a tough year ahead due to the continued cost of living crisis and the government’s decision to raise employer national insurance contributions, which is expected to lead to job cuts and higher prices.

Amid the rapid expansion of its store estate, B&M has looked to increase the number of items it sells and leaned on its competitive pricing to counter consumer caution. However, its like-for-like sales slid 2.8% over the key Christmas period, which was the chain’s third successive quarter of decline as cautious consumers reined in their spending.

Russo, who has held the top job since September 2022 and was earlier its finance chief, will retire at the end of April. B&M said it was in the advanced stages of a recruitment process to appoint a new CEO and will provide an update in due course.

Analysts at Jefferies said the management change was of “limited surprise” and noted that the profit warning indicated that an improved December/January like-for-like trend that B&M highlighted last month had not been sustained.

Tiffany Hall, Chair of B&M’s Board, commented: “Alex has increased our store footprint in both UK and France and driven a relentless focus on high operational standards and low costs, enabling the company to provide great products and everyday low prices to our customers whilst generating continued strong cash returns for our shareholders. We wish him well for the future.”

Russo added: “The business has been successfully steered through the pandemic years and is now larger and stronger, with group revenues increasing by almost 50% and cash distributions to shareholders in excess of £2.0bn during my tenure. It has been professionally rewarding to assemble and work with a high-quality leadership team and to retire leaving growing businesses with great potential in both UK and France. I wish the Board and the leadership team every success in the years ahead.”

NamNews Implications:

• To non-City eyes, a 2.5% drop in anticipated EBITDA seems trivial.
• But always good to manage expectations…
• Meanwhile, B&M is still worth a supplier-bet…
• …given its business model is better than most, for uncertain times.

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Asda Avoids Fine Despite Missing The Deadline For IT Upgrade

Asda has avoided a hefty penalty charge despite missing a target for separating its IT systems from former owner Walmart.

According to The Telegraph, the US retail giant has agreed to push back the deadline for the £800m project, which has seen Asda untangling thousands of programs responsible for checkouts, administration and payroll.

After being acquired by TDR Capital and the Issa brothers in early 2021, Asda had been aiming to complete the IT changeover, named Project Future, by February this year. Last month, industry sources warned that Asda risked millions of pounds worth of charges if it missed this target.

The Telegraph reported over the weekend that Walmart and Asda have now come to a revised agreement, including scrapping the February deadline. It follows a series of setbacks for the project, which had been touted as “mission critical” to Asda’s revival plans.

A spokesperson for Asda told the newspaper: “We continue to make good progress delivering Project Future and have successfully migrated large parts of our business to brand-new systems.

“We will continue to take a pragmatic approach when delivering the remainder of the programme, and Walmart continue to be incredibly supportive in every way in helping with the implementation.”

NamNews Implications:

• Meanwhile, given that their IT systems still need adjusting…
• …suppliers (and shoppers) may wonder about the effect on service level…
• …and react accordingly?

Aldi Raises Hourly Rate Again To Maintain Position As ‘Britain’s Best-Paying Supermarket’

Just weeks after announcing that it was increasing its hourly wages, Aldi has raised the rate again. The move comes days after key rival Lidl said it would offer its UK store staff a better rate that would have meant Aldi was no longer Britain’s best-paying supermarket.

From 1st March, Aldi Store Assistants will now be paid at least £12.75 per hour nationally and £14.05 within the M25. On 21 January, the discounter announced a rise to £12.71 nationally and £14.00 within the M25.

The rates exceed the Real Living Wage set by the Living Wage Foundation in October last year, with some staff seeing higher wages based on their length of service.

Aldi has also committed to a further pay increase for store staff from September, taking its minimum rates to £12.85 per hour nationally and £14.16 within the M25.

“This latest increase recognises the important contribution that our colleagues make day in, day out and ensures they are rewarded fully for their contribution with industry-leading pay,” said Giles Hurley, Chief Executive Officer of Aldi UK and Ireland.

“Every member of Team Aldi plays an important role in providing the best products, service and value to the millions of shoppers that visit our stores.”

Aldi revealed yesterday that it plans to invest £67m in upgrading its existing stores during 2025 as part of a programme to improve the shopping experience for its customers.

NamNews Implications:

• Who would have thought?
• Two discounters vying to be the highest retail payer of staff in the UK.
• If the quality of workers follows the rate of pay, then shopfloor motivation will make a difference…
• More reason for retail rivals to watch?
• And begging the question: Can any supplier afford to ignore the discounters?
• (just implying…)

Aldi Improving Health & Beauty Fixtures In Next Phase Of Investment Programme For Existing Stores

Aldi has revealed that it plans to invest £67m in upgrading its existing stores during 2025 as part of a programme to improve the shopping experience for its customers.

The discounter noted that it had spent almost £600m on store upgrades since 2017, and with the first phase of these updates nearly complete, it was moving on to the next stage of its store enhancement programme.

The initial store upgrades focused on creating more space for fresh, chilled, and food-to-go ranges, alongside simpler layouts, improved fixtures and energy-efficient LED lighting.

The new phase will include additional in-store features such as improved bakery and health & beauty fixtures for customers. Stores will also benefit from CO2 refrigeration upgrades, contributing to an estimated reduction in carbon emissions equivalent to heating over 6,500 homes when the programme is complete.

“Aldi’s £67m investment is a major step forward in our commitment to delivering an even better shopping experience for our customers across Britain,” said Jonathan Neale, Managing Director of National Real Estate at Aldi UK.

“Building on the success of our previous upgrades, we’re enhancing store layouts as part of our dedication to providing customers with more sustainable stores, convenience and an improved shopping experience nationwide.”

As well as store improvements, Aldi is investing approximately £650m in new openings across the UK in 2025, with a target of around 30 additional sites.

NamNews Implications:

• Aldi appears to be addressing possible negatives.
• Whilst making improvements in the estate.
• All adding to an improved shopping experience for more shoppers.
• And if their share starts growing again….

Aldi Tops Cheapest Supermarket Ranking Despite Rival’s ‘Loyalty Schemes And Flashy Promotions’

Aldi has again been named as the UK’s cheapest supermarket in a price comparison survey by trade magazine The Grocer.

The study of a basket of 33 everyday items revealed the gap between Aldi and the four largest full-price supermarkets (Tesco, Sainsbury’s, Asda and Morrisons) was 16% on average.

Despite recently announcing the return of its Rollback scheme, Asda only managed fifth place, with its basket checking out at £7.62 more expensive than Aldi’s.

Tesco was found to be 14% (£7.52) more expensive than Aldi, even when loyalty prices are applied, while third-placed Morrisons came out as £7.36 more expensive.

Lidl was in second place, just 16p behind Aldi.

“The latest data confirms that our prices simply can’t be matched and our customers know that the only place to get Aldi prices is by shopping at Aldi,” said Julie Ashfield, Managing Director for Buying at Aldi.

“Other supermarkets can try and compete with us through loyalty schemes and flashy promotions but the only thing on a roll is Aldi, being named the best on price time after time. That’s because our promise to our customers is straightforward and simple – they will make significant savings every time they shop with us.”

NamNews Implications:

• A 16% advantage on average Mults’ prices has to count for many shoppers
• Key for Aldi to give more shoppers access to their outlets
• Hence the importance of their store opening programme…
• Meanwhile key for suppliers to find ways of working with Aldi..?

Asda Trialling Automated Sampling Machine

Asda has begun testing an automated vending machine that offers free samples to customers at its store in Pilsworth, Bury.

In report a report by trade publication The Grocer, the supermarket described the machine as a “first to market innovation” that could “revolutionise in-store sampling”.

To access a free sample, shoppers have to scan their Asda Rewards loyalty app. A screen on the machine also allows customers to browse ingredient and dietary information.

The first brand testing the new machine is Müller, which is offering shoppers free samples of its Frijj milkshake.

A spokesman for Asda told The Grocer: “We are trialling a digital sampling machine at our Pilsworth store so that customers can try newly launched products from our branded partners simply by scanning their Asda Rewards ID.”

Access to the machine is being offered by the supermarket’s retail media arm, LS Eleven Media Services, and aims to help brands “engage customers with dynamic content and product trials”.

NamNews Implications:

• If only Asda was not saddled with other distractions…
• i.e. we have seen some very original ideas coming from this beleaguered grocer…
• Anyway, key for suppliers in appropriate categories to ensure their access to these sampling machines.

Historic Equal Pay Win For Tens Of Thousands Of Asda Workers

Tens of thousands of Asda’s checkout workers, customer service staff and shop floor assistants, most of whom are women, could be in line for historic payouts after the biggest ever private sector equal pay claim.

A court ruling has made clear that many of the roles on Asda’s shop floors, carried out mainly by women, are of “equal value” to the better-paid ones in the supermarket giant’s warehouses, which are predominantly filled by men.

Read the full article on the ITV website

NamNews Implications:

• It appears that this issue is heading towards a conclusion...
• ...that could cost Asda considerable sums in backdated ‘top-ups’ for workers.
• The resulting uncertainties has to add to the current pressures on Asda.
• A speedy resolution in terms of a negotiated settlement and known cost...
• ...could at least move this issue off the table.
•  Allowing the company to focus on its recovery plan?

Morrisons Hails Strongest Quarterly Performance In Four Years

CEO Rami Baitiéh’s turnaround programme at Morrisons appears to be picking up speed after the group delivered its strongest quarter since the start of 2021.

Over the 13 weeks to 27 October, the grocery retailer’s like-for-like sales increased by 4.9%, with total revenues up 4.8% to £3.8bn. The robust fourth-quarter figures meant that annual like-for-likes had grown 4.1% – a marked improvement on the 1.8% rise the previous year.

Full-year underlying EBITDA was up 11.2% to £835m on revenue that increased 3.8% to £15.3bn.

Morrisons noted that it had made good progress in improving product availability, with it up four percentage points on fresh goods. Its revamped More Card loyalty scheme also saw linked sales grow to 68% at the year-end (76% today), whilst its discounter Price Match initiative now covers over 500 everyday items.

Morrisons also highlighted progress on tackling the large debt burden left over from the takeover by CD&R. The group’s debt is now down 40% from its peak, with CFO Jo Goff saying: “A year of broad-based operational progress has helped to deliver a significantly strengthened Morrisons.

We delivered a further £150m of progress on our working capital programme in the year, taking the total since the start of the programme to £450m, and have achieved £312m in our cost-saving programme in the year.”

Other highlights of the Morrisons year included the sale of its petrol forecourts to MFG for £2.5bn and the acquisition of 36 convenience stores in the Channel Islands.

The group’s convenience store estate now stands at over 1,600 stores after rapid growth in recent years.

“This has been a year of urgent reinvigoration and positive progress for Morrisons. Customer transactions increased, market share grew from Q2, and we saw positive switching from our competitors,” said Baitiéh.

He noted that improvements across the business had resulted in “better availability in our stores, sharper prices, more effective promotions and a strong and growing loyalty scheme”, which was now starting to be reflected in its financial performance.

Baitiéh concluded: “I want to thank everyone at Morrisons for their commitment and energy every day and for playing their part in the significantly improved performance that we are reporting today.

"Supermarkets, Convenience, Online, Wholesale and Myton Food Group all contributed to the improving picture, helping us serve our customers better.”

Morrisons did not reveal how it traded over the key Christmas period. However, Kantar data released earlier this month suggested the chain lagged well behind Tesco and Sainsbury’s.

NamNews Implications:

• Latest stats looking good
• Lowering the debt burden means reduced pressure on debt servicing...
• Is it time for suppliers to join with Morrisons newfound optimism?
• (despite a probable Christmas lag vs Rivals?)

Asda Restarts Search For New Chief Executive

Asda’s new Chairman, Allan Leighton, has restarted the group’s search for a Chief Executive to support his efforts to turn around the performance of the ailing supermarket.

The company has now been without a permanent CEO since the abrupt departure of Roger Burnley in August 2021 following a fall-out over strategy with TDR Capital. Co-owner Mohsin Issa subsequently took charge of operations in 2022 while a search for a new leader was launched.

A large number of people were approached, but Asda failed to attract a candidate despite the prospect of a lucrative pay package, said to be worth up to £10m a year. Reports at the time suggested that Mohsin’s control of the business had put off some experienced industry executives.

With Mohsin having relinquished the reins of the grocer at the end of last year, Leighton is said to be seeking a candidate who he can work alongside rather than a Chief Executive he can oversee as Chairman.

A report by The Telegraph stated that Leighton would retain significant day-to-day involvement in Asda’s strategy through his Executive Chairman role.

Asda hired Leighton at the end of last year following months of falling sales and market share. Initial moves have included strengthening the group’s leadership team and restructuring its regional management setup.

Leighton has vowed to “restore Asda’s DNA” by cutting prices and improving product availability. However, he has warned that it could take as long as five years to restore the supermarket’s fortunes fully.

Earlier this month, Leighton stated his turnaround plans would be based around moves to “satisfy the daily and weekly shopping needs of ordinary working people and their families, who demand value”.

Last week, it was reported that Asda is preparing to launch its biggest Rollback price cuts campaign in years.

NamNews Implications:

• i.e. Asda is seeking a candidate who can work alongside Allan Leighton…
• …rather than a Chief Executive he can oversee as Chairman.
• (Little or no learning-curve time available...)
• i.e. Someone that has worked with Alan previously might seem the best bet…

Sainsbury’s Cutting Thousands Of Jobs In ‘Challenging’ Cost Environment

Sainsbury’s is set to cut thousands of jobs through the closure of its hot food counters and cafes, and by reducing senior management roles, amid concerns about higher labour costs from impending tax rises.

Sainsbury’s stated that the move was part of its three-year ‘Next Level’ strategy, which aims to bring more of its core food ranges to customers, while simplifying central divisions and management structures.

To create more space for its fresh food ranges, the company wants to close its remaining patisserie, hot food and pizza counters. In a further move to simplify the business, Sainsbury’s also plans to close its remaining 61 in-store cafés, subject to consultation.

They are also making changes to its central management structures to support “faster decision making and drive performance” in Sainsbury's and Argos.

Moves include: Rhian Bartlett to CCO Sainsbury’s, Graham Biggart to MD Argos & Chief Strategy and Supply Officer. Patrick Dunne, to Operating Board as Chief Property and Procurement Officer & MD SmartCharge.

In seeking £1bn of operating cost savings, all head office depts to become dedicated to the different needs of its Sainsbury’s and Argos businesses, while creating “fewer, bigger roles with clearer accountabilities”.

Sainsbury’s wants to drive faster decision-making and cost reduction via an estimated 20% reduction in senior management roles over 3 months. Overall, a proposed 3,000 reduction in roles across the business via discussions with staff affected and exploring redeployment opportunities where possible.

Chief Executive Simon Roberts said: “As we accelerate into year two and beyond of our strategy, we are facing into a particularly challenging cost environment, which means we have had to make tough choices about where we can afford to invest and where we need to do things differently to make our business more efficient and effective.

“The decisions we are announcing today are essential to ensure we continue to drive forward our momentum but have also meant some difficult choices impacting our dedicated colleagues in a number of parts of our business. We’ll be doing everything we can to support anyone impacted by today’s announcements.”

Clive Black, head of consumer research at Shore Capital, said Sainsbury’s had unveiled “further, increasingly necessary steps post the autumn Budget, to manage its cost base to enable ongoing investment”.

NamNews Implications

• Either cut job numbers or raise shelf prices...
• Looks like Sainsbury’s wants to try the ‘job-cut’ route before raising prices.
• In their attempt to deliver £1bn of operating cost savings.
• Anticipate similar moves from rivals as the Autumn Budget Tax increases impact the bottom line...

Owner Of Poundland Hires Advisers To Help Address Sales Slump

Pepco Group is reported to have drafted in City advisers to explore radical options for arresting the growing crisis at its Poundland chain.

According to Sky News, consultants from AlixPartners have been hired to address the sales slump at the discount retailer, raising questions over its future ownership.

City sources quoted in the report suggested possible formal restructuring process, prompting significant store closures or sale of the business.

AlixPartners is understood to have been formally engaged last week, with options including a company voluntary arrangement (CVA) or restructuring plan being floated by advisers on a highly preliminary basis.

Sources close to the group told Sky News no decisions had been taken and immediate focus was improving Poundland’s cash performance and reviving the chain’s customer proposition, stressing that a sale process was not underway.

Last week, Pepco Group revealed that Poundland’s performance had deteriorated further over the Christmas quarter, with like-for-like sales down 7.3% (weak clothing + general merchandise sales and “challenging” market conditions.

Poundland trading statement: they had suffered “a more difficult sales environment and consumer backdrop in the UK, + margin pressure + an increasingly higher operating cost environment”.

“We expect that the toughest comparative quarter for Poundland is now behind us – the same quarter last year represented a period prior to the changes made within our clothing and GM ranges – and therefore, we expect the negative sales performance for Poundland to moderate as we move through the year.

Poundland will also not open any net new stores during the year.

“We are continuing a comprehensive assessment of Poundland to recover trading and get the business back to its core strengths, including undertaking a thorough assessment of all costs across the business, as well as evaluating its overall competitive positioning.”

The appointment of AlixPartners comes several weeks after Stephan Borchert, the Pepco Group Chief Executive, said he would consider “every strategic option” for reviving Poundland’s performance.

He is expected to set out formal plans for the future of Poundland, along with the rest of the group, at a capital markets day on 6th March.

Among the measures the company has already taken to halt the chain’s declining performance has been to increase the range of FMCG and general merchandise products sold at its traditional £1 price point.

NamNews Implications

• Rivals have to be puzzled at how a ‘pound shop’ launched in December 1990…
• …can retail anything at a £1 price-point (having absorbed 3% average annual inflation)…
• ...meaning that a £1 in 1991 should be priced at £2.42 today.
• That said, great for Poundland to have made it work, thus far…
• But perhaps time to acknowledge that the Pound-shop concept has reached its limits…

Aldi Reveals Store Opening Plans For London

Aldi is planning to open nine stores in London this year as part of a £55m investment within the M25.

Four of the locations set for openings in the next 12 months include Wimbledon, Fulham Broadway, Caterha, and Orpington. They form part of the discounter’s £650m investment plan for the UK in 2025, which also includes store upgrades.

Aldi stated that it has a long-term ambition to open another 100 stores in London.

Jonathan Neale, Managing Director of National Real Estate at Aldi UK, commented: “We strongly believe that everyone in Britain should have access to high-quality food at our unbeatable Aldi prices. But we know that there are still thousands of shoppers in the capital that don’t yet have access to an Aldi nearby.

“We don’t think it’s fair that so many people still have to make do with big prices at other supermarkets, which is why London continues to be a real focus for us as we work to bring even more Aldi stores to shoppers across the capital.”

NamNews Implications:

• Aldi are planning for a further 100 stores.
• With little need to exaggerate their intent.
• i.e. Take it as read...
• Then presumably rivals will match the coverage…
• …at least.
• (and suppliers too, hopefully?)

Lidl GB is reaffirming its commitment to “responsible marketing” by removing all packaging designs deemed attractive to children from its least healthy own-brand products by the middle of this year.

Going further than new legislation that is set to restrict the advertising of less healthy to children from October this year, they are eliminating design elements, i.e. animated shapes, brightly coloured patterns, or playful product names that do not reflect the items themselves.

i.e. Lidl’s gummy bears will transition from bright, cartoon-adorned packaging to a simpler, more product-focused design that emphasises its fruit flavours.

In 2020, Lidl became the first supermarket in the UK to confirm the removal of cartoon characters from its breakfast cereals to help parents resist pester power.

Early 2024, they added a ban on cartoon characters from all ‘less healthy’ products aimed at children.

Lidl stated that its strengthened commitment aims to ensure that any product deemed as least healthy according to the WHO Nutrient Profiling Model or FSA Nutrient Profiling Model, alongside any breakfast cereal, cannot be marketed in a way that appeals to children, with only the healthiest of products being targeted at them.

“We know that households want to achieve healthier lifestyles, and so we’re fully committed to helping families adopt better habits while still having access to high-quality, affordable, and enjoyable products,” said Richard Bourns, Chief Commercial Officer at Lidl GB.

“As a father of young children myself, I know how influential packaging designs can be on their preferences, and therefore understand the importance of taking a proactive position to better support parents.

“Introducing these changes ahead of the upcoming legislation on advertising signals our readiness to meet and exceed these standards.

Lidl has long been making changes for the better, so it’s great that we’re continuing our legacy of leading the way in supporting healthier lifestyles by removing unhelpful packaging and enhancing designs for products that contribute to better diets, like our Funsize fruit and veg range.”

Rebecca Tobi, Senior Business and Investor Engagement Manager at the Food Foundation, added: “Despite the critical importance of good nutrition for children, commercial foods high in sugar and salt are often heavily marketed towards children, making it impossibly hard for families to navigate their way through the supermarket aisles without falling victim to pester power.

Ahead of new government regulation coming in later this year, this is a very welcome and market-leading move by Lidl GB to better support families to access healthier diets.”

NamNews Implications:

• Worth keeping in mind that this is a discounter initiative…
• And has to be a pointer for other grocers…
• Leading to some pressure on brands in affected categories, maybe?

Tesco Rolling Out Secure Chillers To Tackle Shrinkage

Tesco is rolling out secure cabinets to a further 50 of its stores to secure high-value items like champagne and sparkling wines.

The in-aisle cabinets, supplied by Wanzl, can only be opened by customers via a keypad, with an alarm sounding if the door has been left open for more than seven seconds or propped open.

A report by trade magazine The Grocer reveals that the cabinets have already been rolled out to 22 stores – including two in smaller Express stores – following a trial which started in late 2023.

The latest version of the cabinets is said to feature an updated customer journey, aimed at reducing friction for the shopper.

Lee Gilks, Wanzl’s UK head of retail shop solutions, is quoted as saying: “High-value alcohol in stores has always been a challenge. You have to strike the balance between selling things and locking things away. To fix shrinkage you could just put a massive lock on it, but that becomes a bit of a sales turn off.”

He noted that Wanzl’s solution has a “really friendly” customer interface and doesn’t stand in the way of someone getting what they want to get, but has significantly reduced theft incidents.

The Grocer’s report highlighted that future potential for the cabinets included digital header screens, weighted shelves and cameras that could record the demographics of shoppers and the products they select.

NamNews Implications:

• The balance between selling things and locking things away.
• The classic shrinkage prevention trade-off…
• Couple that with shopper perception re future use of
• - digital header screens
• - weighted shelves
• - cameras that could record the demographics of shoppers and products selected
• Perhaps a return to the shelf behind the checkout?

Asda’s New Chairman Kicks Off Restructuring After Disappointing Christmas

Six weeks after returning to Asda as Chairman, Allan Leighton has launched his first round of cost-cutting as part of an overhaul of the troubled business.

According to The Telegraph, Leighton revealed to staff last week that 13 regional managers would be leaving the business as part of a shake-up aimed at trimming headcount and improving performance.

The restructuring comes after a disastrous festive period for Asda, with recent Kantar data showing the chain suffered a 5.8% fall in sales during the 12 weeks to 29 December.

In an internal memo released on 7th January, Asda’s management confirmed that the restructuring will mean that supermarkets and express stores will now be managed across 22 “sub-regions”, down from 30.

This will mean fewer regional managers across the business with control over more stores.

“Change is never easy and unfortunately we have had to say goodbye to a number of colleagues,” the memo said.

The move comes just two months after Asda announced that it was scrapping around 475 head office roles as part of attempts to “remove duplication and simplify structures”.

Since replacing Lord Rose at the end of November, Leighton has vowed to “restore Asda’s DNA” by cutting prices and improving product availability. However, he has warned that it could take as long as five years to improve the supermarket’s fortunes, raising questions over the stewardship of majority-owner TDR Capital.

Commenting on the article by The Telegraph, an Asda spokesperson said: “We made changes to our field-based retail team regions to reflect the scale of our business across large stores and convenience.

These changes set us up to serve our customers in the best way for 2025 as we deliver Asda Price and other exciting propositions.”

NamNews Implications:

• The key issue for suppliers (and retail rivals?) has to be the extent to which these manpower cuts will be sufficient in terms of “restoring Asda’s DNA” by cutting prices and improving product availability.
• Given the probable five-year requirement for improvement of Asda’s fortunes…
• …perhaps the closing of a significant number of stores will be necessary…
•  …to allay stakeholders’ fears?

Tesco And Lidl Remain Top Performers As Discounts Drive Growth

Latest data from Kantar shows that take-home sales in the grocery sector rose by 4.3% over the four weeks to 26 January as supermarkets ramped up discount activity to attract cash-strapped shoppers after the costly Christmas period.

This also helped drive down grocery price inflation from 3.7% in December to 3.3% during the opening weeks of 2025 at a time when retailers are warning they may have to increase prices later this year to offset the hikes in employer national insurance contributions and the minimum wage. In January, prices rose fastest in categories such as chocolate confectionery, chilled smoothies & juices and butters & spreads, while they fell fastest in ambient cooking sauces, household paper products and cat food.

Spending on promotions during the four weeks rose by £274m year-on-year, accounting for 27.2% of sales – the highest level in January since 2021. Fraser McKevitt, head of retail and consumer insight at Kantar, noted that people also turned to non-branded products to help keep costs down, with own label as a proportion of sales hitting a record high of 52.3% in January. Spending on supermarket own label lines was up 5.4%, boosted by consumers buying premium products in days leading up to New Year’s Eve.

Meanwhile, the Kantar data confirmed that shoppers started the new year with a focus on wellness and health. More than 10% of the average consumer’s January grocery bill was spent on fresh fruit, vegetables and salad, totalling £1.2bn – £193m more than in December. Nathan Ward, business unit director for usage and out-of-home at Kantar, commented: “Rolling into the new year, health tends to play a bigger role in our grocery choices. Over a quarter of take-home food and drink in January is chosen with health at least partially in mind, as shoppers tell us they want to eat less processed food and feel the benefit of fibre and vitamins.”

Protein products also pulled their weight at the tills as demand for bars, bites, and drinks boosted spending on sports nutrition products. Sales for this category at supermarkets were 47% higher than last year, with over two million households buying these items during the month.

Sales of low and no alcohol drinks were 7% higher than last January, and 6.7% of households bought at least one of these alternatives. McKevitt said: “It’s no surprise to see the low and no alcohol trend make its mark in January, but given some of the generational splits we have seen in grocery, it’s interesting that older shoppers are just as likely to take these products home as younger ones. Not everyone signed up for dry January though, with 49% of people buying an alcoholic drink this month – but this is a pretty big drop from December’s 76%.”

Looking at the performance of individual retailers, sales at Lidl rose 7.4% over the 12 weeks to 26 January, making it three continual years of growth for the discounter, whose market share now stands at 7.2%. Aldi’s growth accelerated for the third consecutive month, with sales up 4.2% and its market share increasing to 10.2%.

Tesco gained the most share, with its 28.5% hold of the market now 0.7% higher than this time last year after seeing its fastest rise in sales since April 2024 at 5.6%. Sainsbury’s also outpaced the market with sales growth of 4.2% and an increase in share from 15.7 to 15.9%.

Despite an upbeat trading statement last week, sales at Morrisons were unchanged, and its market share slipped to 8.6%. Asda continued its dismal run, with its sales sliding 5.2% ahead of last week’s launch of a major Price Rollback campaign aimed at kick-starting its recovery.

Ocado was the fastest-growing grocer for the ninth consecutive month. Spending at the online retailer grew by 11.3%, meaning it now holds 1.9% of the market.

Meanwhile, M&S, whose higher proportion of clothing and general merchandise in its sales mix means it does not fall under the definition of ‘grocers’ using the research group’s Till Roll methodology, saw its grocery sales increase by 10.5% in its bricks & mortar stores.

NamNews Implications:

• Brands promoted in January to pull back share from own label.
• (Possibly a continuing issue as retailers raise shelf prices in anticipation of Autumn Budget Tax increases)
• Retailers themselves may choose to reverse the brand/own label balance to 50/50…
• …to increase the appeal to brand owners as retail media grows.
• Tesco’s growth exceeding the grocery market continues to impress…
• While Aldi & Lidl’s rate of growth and increase in share has to be of concern to rivals.
• Meanwhile, the growth of the mults and discounters, largely at the expense of Asda and Morrisons…
• …has to add to the comeback pressures each.

Some Career-change Reassurance from the NamNews Team!

Morrisons Launches Major Loyalty Prices Campaign

 

Morrisons is hoping to accelerate its sales growth by lowering the prices of over 2,000 products for members of its More Card loyalty scheme.

The price cuts will roll out in September across branded fridge, freezer and cupboard filler items. Examples include Heinz Tomato Ketchup at £2, down from £3.40, Huggies Pure Extra Care Wipes at £7, down from £11, and Sure deodorant at £2.40, down from £3.50.

As well as being signposted onshelf, the latest deals will communicated through the supermarket’s More app and by emails to its members.

Meanwhile, Morrisons has added over 70 more products to its Aldi and Lidl Price Match scheme as it tries to win back shoppers from the discounters.

The retailer will also be signposting hundreds of ‘Low Everyday Price’ items across branded and own-label lines, including cupboard staples, bakery and snacks, toiletries, cleaning products, and baby care.

While Morrisons has seen an uptick in its sales performance since Rami Baitiéh took over the role of CEO, the business has continued to lag behind the likes of Sainsbury’s and Tesco, and lose market share.

Commenting on the latest campaign to improve its competitiveness, Group Marketing Director Alex Rogerson said: “Today’s move represents our single biggest investment in loyalty and pricing for many years. Driving strong value for customers remains our number one priority, and today we are getting the big bazooka out and slashing the prices on over 2,000 products for More Card customers.

“Together with our Aldi and Lidl Price Match and our vast range of Low Everyday Prices – we have thousands of products that not only offer outstanding value on brands and essential items our customers love – but also have the quality they’ve come to expect from us.”

Last week, consumer watchdog Which? called for action to tackle “murky and confusing loyalty pricing practices” after its latest research found that some deals may not be as good as they appear.

NamNews Implications:

• Price & loyalty promos, big time!
• All now depends on perceived value vs alternatives available.
• Leading to repeat purchase…
• …the only test of success.
• And thence share growth…
• Fingers crossed!

Tesco Rapidly Expanding New Online Marketplace

Just two months after its launch, Tesco has over doubled the number of SKUs on its new online marketplace.

When it went live at the beginning of June, the site listed 9,000 products from third-party sellers across various categories, including garden & DIY, home accessories, toys, sports & leisure, petcare, greeting cards, baby & toddler, furniture, and beers, cider & spirits. Tesco stated at the time that once the marketplace was at full scale, it would be a “one-stop shop for everything customers need”.

According to trade magazine The Grocer, the range on the supermarket’s marketplace now totals more than 20,000. The report noted that the marketplace has close to doubled the total number of SKUs on Tesco.com, which offered around 28,000 products before its arrival.

Peter Filcek, Tesco’s Marketplace Director, told The Grocer that it was “really excited about expanding Marketplace over the next few months to give customers even more choice, and we look forward to working with new sellers to introduce further categories and brands to Marketplace”.

Tesco has previously stated that it is not trying to replicate Amazon. Chief Executive Ken Murphy said in June: “The primary focus of marketplace is to build out and extend the range of food, food-related and home products available to customers – so to be very clear, we are not trying to be Amazon.

"We are not trying to be all things to all people".

He noted that the grocer was making “all of those niche products that you won’t necessarily find on our shop shelves” available to shoppers.

Amazon has over 500 million products listed on its marketplace.

NamNews Implications:

• Bearing in mind there are no limits to online portfolio size…
• (i.e. Amazon 500m+)
• …one wonders how far Tesco plans to go…
• …and to what extent suppliers should attempt to keep up.
• (for a fair share of the action and cost)
• For sure, it is not even the end of the beginning…

Many Consumers Have No Plans To Switch Back To Branded Goods

A new survey suggests that some brands might find it difficult to tempt back consumers who switched to private label during the cost of living crisis.

The EY Future Consumer Index (FCI),  a survey of 23,000 consumers, 30 countries, found 28% bought private label in response to rising costs, a trend that appears to have become a sustained habit, with 66% finding the less expensive O/L satisfying their needs just as well as branded lines, with 38% having no plans to switch back.

NB the research shows this trend is not exclusive to mid- to lower-income bands. Higher-income consumers are planning to buy private label brands in the future, across every category: fresh food (60%), home and household care (56%), packaged food (52%), clothing, shoes and accessories (49%), personal care (49%), and beauty and cosmetics (39%).

According to the FCI, retailers are trying hard to capitalise on the opportunity by promoting private label aggressively – eye-level shelving and front-of-store placements – and increasing ranges. 

Instead of branded products at a lesser price, they are offering a range of product options, analysing POS data to identify early trends, (strong position to respond to buying patterns and consumer needs). EY: the closer retailers get to the consumer, the more power they have to curate buying choices, and the more they can drive lasting loyalty.

Kristina Rogers, the firm’s Global Consumer Leader, said: “..many consumer products (CP) companies are focusing on volume recovery. Simplifying the portfolio, driving down costs and unlock resources are important, but this must happen alongside innovation and marketing – they need to keep their brands inside the consumer’s circle of trust to maintain their margins and fund growth agendas.

“For retailers, better data analytics capabilities will help them target and reach consumers. They can use retail media and loyalty programs to incentivise private label purchases and create alternative revenue streams by promoting their partner brands. 

CP companies will need to take a balanced approach – promoting their brands to meet today’s goals, while also pursuing ways to keep these new consumers and earn their loyalty. Innovative new products that differentiate from private label and which consumers find valuable will be key to their future success.”

NamNews Implications:

• The brand nightmare!
• Consumer-switchers found these less expensive alternatives satisfy their needs just as well as branded lines.
• Retailers need to maintain a high level of consumer trust…
• (by delivering more than it says on the tin, every time)
• …whilst brands, the damage already having been done, have to either drop prices to a point that minimises the difference…
• …or develop the potential of Retail Media to a point where the retailer has more to gain from the brand, than from their own label alternative.

Brands Outperform Own Label While Tesco And Waitrose Make Share Gains

Latest data from Kantar shows that take-home sales at the UK’s leading grocers rose by 2.2% over the four weeks to 7 July, boosted by football fans purchasing beers, crisps and other snacks during the Euros.

Fraser McKevitt, head of retail and consumer insight at Kantar, commented: "Football fans drove beer sales up by an average of 13% on the days that the England men’s team played, compared with the same day during the previous week. Sales of crisps and snacks up 5% vs month before. With many matches played on ‘school nights’, though, some Britons chose moderation. Spending on no and low-alcohol beer soared by 38% on matchdays.”

Grocery price inflation down to 1.6% – lowest since September 2021. The drop coincided with the fastest rise in monthly footfall so far in 2024. Consumers supermarket trips up 2% this period vs one year ago.

Meanwhile, as cost of living pressures started to ease for some people, sales of branded products increased by 3.6%, outpacing own-label items, which grew by 2.7%.

After a difficult few years, Kantar noted that retailers will now be turning their attention to the King’s Speech on Wednesday to see what the newly elected government’s legislative agenda holds for the grocery sector.

Looking at the performance of individual retailers, Ocado was the fastest-growing grocer for the fifth month in a row, with sales up by 10.7% over the 12 weeks to 7 July. The online retailer now holds 1.8% of the market, up 0.1 percentage points compared with the same period last year.

Lidl saw a 7.8% jump in sales, bringing its share of the market to 8.1%. Aldi continued to struggle for growth, with its market share slipping to 10% after a 0.3% increase in sales.

Waitrose gained share for the first time since January 2022, achieving a 0.1 percentage point rise to 4.5% as spending at the retailer increased by 3.3%.

Tesco achieved its biggest share gain since November 2021, taking 27.7% of the market – a 0.7 percentage point increase versus last year – after a 4.6% rise in sales. Sainsbury’s saw its sales climb 4.7%, bringing its share to 15.3%.

Meanwhile, it was another difficult period for Asda, with its sales down 5.3% and market share slipping to 12.7%. Morrisons managed a 1% increase in sales, with its share unchanged at 8.7%.

NamNews Implications:

• Despite their efforts/initiatives, Asda continue to lose share to Tesco & Sainsbury’s.
• Given private equity involvement, anticipate cuts at Asda to improve EBITDA.
• Meanwhile, Morrisons is managing to hold share as part of a gradual turnaround.
• The switching back to brands reduces the risk of shoppers becoming loyal to own-label equivalents…
• …but the key question remains: What will Aldi do to restore growth vs Lidl?

#MarketShares
#Kantar

Tesco Aiming For Extra £1bn In Sales From Premium Range

The CEO of Tesco has revealed that the retailer is targeting an extra £1bn in sales for its Finest own-label range to meet growing demand for premium food & drink and challenge the likes of Waitrose and M&S.

Finest currently has annual sales of £2bn. Speaking to the Financial Times, Ken Murphy said: “We haven’t yet set our stall out to say ‘what would it take to get to £3bn’, but we’re very conscious it is playing an increasingly important role.”

He added: “We genuinely believe . . . that our intrinsic [food] qualities are every bit as good as anything you would get at Sainsbury’s and increasingly out of Waitrose … M&S, we probably still have a bit of work to do.”

The report notes that in the face of higher living costs, shoppers are shunning restaurants and becoming more adventurous with their cooking at home.

Data from Kantar shows that spending on premium own-label lines in the leading UK supermarkets rose 12% in the year to 9 June even as inflation eased. The figure was also nearly double the 6.9% growth in all brands owned by the grocers, including their budget ranges.

The FT highlighted that Tesco’s Finest products account for only over 3% of the group’s £61.4bn sales, although this is equivalent to about a quarter of Waitrose’s total sales and M&S’s food sales, respectively.

However, it has taken Tesco about a decade to reach the £2bn level from £1.4bn in sales in 2013. Murphy did not reveal whether there was a target date set for getting sales to £3bn, but Clive Black, a retail analyst at Shore Capital, told the FT that it would not be earlier than “the medium and long term before that number is reached” given that the industry’s annual growth is relatively modest.

NamNews Implications:

• ‘Shoppers are shunning restaurants and becoming more adventurous with their cooking at home…’
• …heightening consumer awareness of the difference made by quality ingredients…
• …and the home-cost of ingredients vs the price paid in hospitality.
• All potential threats to ‘eating out’ long term.
• Apart from increased savviness re branded equivalents in store.
• One to watch…

#OwnLabel #Hospitality

Co-op’s Retail Media Activities Boosting Brand Sales In Neighbouring Grocery Stores

Research by Co-op – in partnership with Circana – shows retail media activity for brands in its convenience stores not only boosts its own sales but also generates up to four times more sales in surrounding grocery outlets.

Brands seem to benefit from a halo effect when advertising in Co-op shops, which can boost sales in the longer term. Circana found a ‘global beer brand’ RM Co-op campaign increased sales by 12% in Co-op stores + a 3% uplift in nearby non-Co-op stores.

The non-Co-op stores uplift was 4x total incremental sales value in Co-op stores. Circana said the impact on total sales due to halo stores where the sales uplift occurred and the larger pack sizes bought in those stores.

Dean Harris, Head of Co-op Media Network, commented: “The Co-op Circana results show when brands activate campaigns with Co-op, there is an immediate positive sales impact [not only] in our store, but also with competitors in the surrounding area. As an RMN, our main goal for the brands that advertise with us is to generate sales regardless of where that customer purchases the product.”

Convenience is a frequently shopped channel for top-up missions, often in addition to a bigger shop. The data showed that Co-op shoppers engage the most with other grocers, which provides convenience retail media with an extra amplifier effect on halo sales.

Harris continued: “The analysis of the beer campaign shows that by influencing brand purchase decisions in other non-Coop stores, the retail media activation is able to generate higher incremental sales by tapping into larger pack sizes available in supermarket stores.

“This halo effect data is incredibly insightful and gives further confidence to talk to our clients about the power of retail media in the convenience setting.”

Mark Hurst, EMEA Head of Retail Media at Circana: “As the advertising industry continues to expand traditional retail media inventory and accelerate digital and addressable channels and privacy regulations limit traditional measurement methods, retailers are increasingly in need of more agile and accurate ways to measure campaign performance across channels and tactics.

“Being able to analyse media lift through a range of sales-based measurement approaches, including Test & Learn, tactical comparisons and mid-campaign analysis, results in faster and more cost-effective decision making, enabling retailers like the Co-op to demonstrate brand impact and how it drives incremental value.”

Co-op launched its retail media network early this year, claiming it was the first in the convenience sector.

NamNews Implications:

• Think of the halo-impact when several mults are advertising the same brand via retail media…
• “(Our Goal) to generate sales regardless of where that customer purchases the product.”
• i.e. A compelling sales proposition.
• Begging the question: Who needs blunt traditional media?

#RM

Aldi Still UK’s Cheapest Supermarket, Even When Compared To Loyalty Pricing Schemes

After including loyalty prices for the first time in its monthly grocery goods price comparison, consumer group Which? found that Aldi still came out cheaper than Tesco and Sainsbury’s.On a basket of 65 items, Aldi’s total came to £118.41. This was £14.49 cheaper than Sainsbury’s and £12.49 cheaper than Tesco for an equivalent list of items, even when discounts from their respective Nectar and Clubcard Prices schemes are included.

Julie Ashfield, Managing Director of Buying at Aldi UK, said: “With many households still struggling to make ends meet, we’re more committed than ever to remaining the UK’s cheapest supermarket. This latest Which? analysis shows that Aldi prices just can’t be matched, even with a loyalty card!

“At Aldi, we’re dedicated to having clear, consistently low, prices so shoppers know how much they’re spending long before they get to the till. And we’re really proud of the award-winning quality of the products we’re providing at these amazing prices.”

Aldi has seen its sales performance weaken this year as Tesco and Sainsbury’s step up their efforts to combat the discounters by expanding their price match schemes. Aldi has also faced price matching on new fronts in 2024, with Asda and Morrisons launching their own versions that also match Lidl.

In response, Aldi has ramped up its marketing activity and pledged to reduce more prices in 2024 than in any previous year, with it expecting to top the £380m investment it made in 2023.

NamNews Implications:

• But why the slowdown in growth?
• Aldi are determined to keep this ‘Cheapest Supermarket’ title’
• ..."by reducing more prices in 2024 than in any previous year...
•  …with it expecting to top the £380m investment it made in 2023"
• Watch this space…

#Aldi #CheapestSupermarket

Morrisons Develops App So Wholesale And Franchise Partners Can Top Up In Its Supermarkets

Morrisons is to allow its wholesale and franchise partners to top up on food and drink lines in its supermarkets at prices based on agreed terms.

According to trade magazine The Grocer, a newly developed app allows retailers within the Morrisons supply network to scan the items they need in stores using their smartphones.

Once they have completed their shop, they check out with a duty manager. However, rather than buying at normal in-store prices, the wholesale customer is invoiced on their existing agreed terms, with an electronic delivery note sent to their store EPoS systems and email.

Morrisons wholesale division currently stocks a range of over 9,000 products for delivery, supplying more than 1,600 stores across five countries. The top-up solution is seen as an extra tool for its customers, who will continue to be serviced by the existing delivered model.

NamNews Implications:

• Morrisons have, in effect, increased their wholesale/franchise distribution points…
• …to include all of their retail branches as a top-up facility.
• Neat!
• And probably makes them the best UK wholesaler in terms of coverage…

#Wholesale #Cash & Carry #Morrisons

Morrisons Rolls Out WIGIG Range

Morrisons ‘when it’s gone it’s gone’ (WIGIG) range has been rolled out to nearly all its supermarkets.

Having first been introduced in February, trade magazine The Grocer reveals that the chain’s WIGIG range has now reached its 450th store. It offers shoppers discounted general merchandise, similar to the offer in Aldi and Lidl’s middle aisle.

Morrisons is said to be working with several new suppliers to offer a range of products, including cookware, toys, homeware, electricals, garden, and car care. Some health & beauty, household cleaning, and food & drink lines have also been featured.

The offers are displayed on wooden crates with ‘When it’s gone it’s gone’ signage. They are live in store for three weeks at a time, with new products added weekly.

Speaking to analysts last week, Morrisons CEO Rami Baitiéh said: “Our trading mentality is growing – and nothing illustrates this more clearly than the way the whole company has got behind our range of outstanding value WIGIGs.

“For us, WIGIG is not a gimmick. It’s a strategic lever for sales growth and customer delight. The offers have to be great quality… but at genuinely outstanding prices. And while we build our strength in WIGIG, we are also building up muscle, experience and supplier relationships in GM and home & leisure… which is an area where we under-index.

“We are still at the start of our WIGIG journey, but the best traders in Morrisons now see the potential, have got behind it, and we are improving every day.”

Last month, Morrisons delivered another “solid quarter of progress” as Baitiéh implemented his recovery plan, which has focused on improving the chain’s product availability, loyalty scheme, and price competitiveness.

NamNews Implications:

• When shoppers fully understand WIGIG…
• …it becomes an opportunity and incentive to buy ‘before stocks run out’.
• With Morrisons becoming a source of once-only bargains…
• …‘providing great quality… but at genuinely outstanding prices’.

#Morrisons #WIGIG

Aldi Starts Testing Its First Loyalty Scheme

Following long-running rumours that Aldi has been developing a loyalty programme, it has been reported that the discounter has started trialling a digital-based scheme in Belgium.

The platform is accessible through an updated Aldi app, which enables shoppers in 70 stores across the West Flanders and northern Hainaut regions to earn points on purchases by scanning a QR code at the checkout. These points can then be redeemed for free products or discounts.

A spokesperson for Aldi Nord told a local news agency: “We are adapting to changing customer preferences. This digital card complements our existing discounts and promotions, offering loyal customers a way to save even more.”

Reports stated that the test is being co-led and monitored in Germany by Aldi Nord with a view to a possible international launch.

Last month, Aldi said that it had no plans to launch a loyalty app in the UK after scanners identical to those used by Lidl for its rewards scheme were spotted at its checkouts. Aldi stated that the devices had nothing to do with a potential new scheme and were instead for electronic gift cards. However, the report noted that the new scanners were only in some of the discounter’s stores.

Members of the Lidl Plus scheme scan the app at checkouts to claim discounts and personalised rewards. The app has been credited with helping Lidl become the fastest-growing bricks & mortar supermarket in the UK over the last 10 months.

In contrast, Aldi’s sales growth has lagged behind its rivals in recent times after facing tough comparatives with its strong performance last year and increased price competition.

Marc Houppermans, executive partner at Discount Retail Consulting and a former Aldi Netherlands board member, told trade publication The Grocer last month that Aldi was working on an answer to Lidl’s app at an international level but “will do it differently as many Lidl customers complain that they do not get the same discounts if they do not have the app”.

NamNews Implications:

• Truly a Reward for Loyalty and should work well on that basis.
• Unfortunately, given the low % of brands in the Aldi model...
• ...the discounter will miss out on the key benefit of branded data i.e. First Party Data that can form the backbone of optimising Retail Media Revenue
• Thereby placing Aldi at a significant disadvantage to the Mults.
• In other words, Aldi will need to radically change the % of Branded vs Aldi Surrogate brand...
• ...(say 50/50, minimum) to restore parity with the mults.

#AldiBusinessModel