Tesco Sees Consumers Sticking With Cost-Of-Living Crisis Habits

After posting robust half-year results yesterday, Tesco highlighted that consumers were sticking with behaviours that emerged at the start of the cost-of-living crisis in 2022, such as eating more at home.

“When we had the first cost of living crisis three years ago, there was quite an adjustment in shopping habits at that stage, and those habits have stuck,” said the group’s Chief Executive, Ken Murphy.

Tesco noted that it was continuing to see a strengthening of the ‘dining in’ trend, with consumers opting for premium supermarket products over a trip to a restaurant, partly to save money.

Murphy said this was evidenced by year-on-year sales growth of 16% for its premium own-brand Finest in the first half, marking a third consecutive year of double-digit sales growth.

“It might be kind of a Covid hangover, it might be part of the Netflix phenomenon of dine in, watch a movie, have a bottle of wine, and (Finest’s) a great proposition at great value, it could be a money-saving exercise,” he said.

“It’s hard to put your finger on what the single reason for the trend is, but it is definitely a trend.”

Murphy also pointed to a recent trend of people buying more fresh food to cook more from scratch. Tesco’s food like-for-like sales in its domestic market rose by 5.7% during the six-month period to 23rd August, with a “strong volume performance” from fresh food, driven by “ongoing range development, focused on product quality and innovation”.

Meanwhile, Murphy noted that consumers were also concerned about the upcoming government budget, which is expected to include tax increases, as well as the economic outlook for the UK. He urged the Chancellor Rachel Reeves to deliver a “pro-growth and pro-jobs” budget on 26th November.
“In the last budget, the industry and the sector incurred substantial additional operating costs, we’re doing our best to deal with them, but enough is enough,” he added.

NamNews Implications:

• For anyone who’s been ‘abroad’ for the past couple of years, this means:
• Switching from brands to premium own label…
• …and finding the ‘compromise’ less than expected
• (Witness the difficulties experienced by brands in winning them back).
• Seeking true like-for-like price comparison (time for unit pricing to live up to its promise).
• Willingness to shop around for value (in part to Aldi & Lidl advantage…)
• ‘Sticking with cost-of-living crisis habits’ means sticking with cost-of-living crisis habits.

Tesco Expected To Raise Profit Outlook After Strong Performance During Summer

Analysts anticipate that Tesco will upgrade its full-year profit guidance when it posts its first-half results on Thursday, having benefited from the good summer weather.

Industry data published by Worldpanel by Numerator (formerly Kantar) earlier this month showed Tesco winning more market share than any other major grocer in the UK. Its sales climbed 7.7% over the 12 weeks to 7th September, its strongest rate since December 2023, giving it a market share of 28.4%, up 0.8 percentage points compared to the same period last year.

In June, the group forecast adjusted operating profit for the year ending February 2026 of between £2.7bn and £3.0bn, down from the £3.13bn achieved in 2024/25.

“We expect a modest lift of the guidance range, perhaps to £2.8bn to £3.0bn, at FY reflecting the strong H1 performance, (and) reflecting a customarily cautious stance,” analysts at Jefferies said.

On average, analysts are forecasting £2.95bn for the full year and £1.56bn for the half year.

Tesco said in April that it expected profit to fall in its 2025/26 year as it set aside cash to deal with a step-up in “competitive intensity” – a reference to a pledge of sustained price cuts from Asda in an effort to win back market share.

However, Tesco’s strategy of price-matching Aldi on hundreds of key items, together with its Clubcard Prices promotion, has helped it maintain its momentum and see off competition from its rivals.

Shares in Tesco are up 20% so far this year, but analysts also noted concerns about the sector more broadly, including rising food inflation, the possibility of further tax rises in the government’s November budget, declining wage growth, and a weakening jobs market.

NamNews Implications:

• Given economic and political uncertainties, cautious optimism is understandable.
• The issue is how to preserve consumer perception of everything possible being done to manage on-shelf inflation.
• Meanwhile, Asda is surely proving to be less of a threat than anticipated.
• And there are limits to Aldi and Lidl’s capabilities in terms of depth of cuts.
• All making Tesco a safe bet for suppliers and the City…

Asda Reportedly Planning Another Range Overhaul

Asda has invited key suppliers to a ‘reset’ conference on 7th October, which is thought to be a precursor to a significant range overhaul as part of the struggling supermarket’s turnaround plans.

A report by The Grocer noted that Chairman Allan Leighton has already cut the number of brands in the Asda range and is now seeking to attract brands to become partners in the next phase of its range shake-up.

The meeting is expected to see the group’s returning Chief Commercial Officer, Darren Blackhurst, outline plans for a “commercial reset” of the business, sparking speculation that he is planning another review, similar to the one he carried out when he last held the role from 2006 to 2010.

The Grocer revealed that the invitation sent out to UK sales directors last week invites them to attend Asda’s Merchandising Centre of Excellence in Leeds, stating plans to “put customers at the heart of everything we do”.

A supplier source is quoted in the report as saying: “The speculation is that Blackhurst will be looking for suppliers to get on the bus. We think he will be looking to do exactly as he has done in the past with the infamous John West vs Princes Tuna, where one got delisted and the other got the whole pie.

“And the rumour is that it’s not just about 2026. There will be an ask for Q4 2025. This is where experience comes in handy: we have been on this merry-go-round a few times.”

The Grocer noted that despite Asda stressing it regularly holds supplier conferences at the venue, the fact that sales directors have been given only three weeks’ notice of the event has increased speculation about its intentions.

“They do have fairly regular conferences, but not at this short notice and not aimed specifically at sales directors,” said another supplier.

Meanwhile, Ged Futter, a former Asda buyer and founder of The Retail Mind, who previously worked under Blackhurst, commented: “We have seen Blackhurst do this before at Asda with the less is more strategy. Now he’s got his feet back under the table, this is clearly Asda making a call to arms for suppliers for the next financial year, and suppliers will be expecting more of the same.

“The trouble for Asda is that the retail world is in a very different place to what it was in 2006. Just look at the share Aldi and Lidl had then. Back then, Asda owned price.

“Leighton has already tried to a certain extent to do this already this year. It makes sense for them, now they’ve hired people like Blackhurst and Eyre to be putting them out in front of suppliers. But I fear that Asda will be out to achieve the impossible.”

NamNews Implications:

• You have to admit, Asda keep trying…
• Given Asda’s race against the clock, most things have to be at short notice…
• This is really about brands’ willingness to compete i.e. a probable ‘one in, one out’ policy…
• …with a brand coming on board, wondering how a rival brand will retaliate elsewhere.

Chinese Retail Giant Preparing For Full Launch Of Online Store In The UK

JD.com, one of China’s largest retailers, is recruiting for more than 150 jobs in the UK in preparation for a full commercial launch of its online store Joybuy, which sells a wide selection of both grocery and general merchandise products.

The company unveiled a beta of the site in April. Initially, the website took orders from consumers in select London postcodes, offering a range of ambient and frozen foods, household products, baby items, beverages, personal care, beauty, health, pet supplies, and nicotine products from major brands. Hundreds of Morrisons own-label food and drink lines are also available. Other categories added since include electronics, home appliances, and home & living.

To help establish the UK operation, JD.com assembled an experienced team of UK grocery buyers and category executives who had previously worked for retailers such as Sainsbury’s, Asda, Tesco, Ocado, and Amazon.

According to The Grocer, JD.com is hiring for roles covering multiple functions, including its growing network of UK warehouses and distribution centres as well as head office roles such as category manager, data analyst, accountant, developer, and user experience designer.

This will increase JD.com’s current UK 250 full-time headcount by 60%, + more employed on a contract basis.

JD.com in The Grocer said: “Joybuy is JD.com’s online retail business in Europe, dedicated to creating a more joyful shopping experience for our customers.

“Our service in the UK is currently in the beta testing phase, but we’re continuing to recruit great people to create an amazing customer journey, as we build towards our full commercial launch later this year.”

JD.com has been in inconclusive talks to acquire Sainsbury’s Argos, suggesting they have big plans for the UK.

JD.com were online-only but now has over 10,000 retail outlets and an annual turnover of more $150bn. It has also diversified into sectors such as technology, logistics, and healthcare.

In recent years, they have been expanding outside China, establishing operations in several EU countries and across Asia. The Joybuy brand has already been rolled out in Belgium, France, Germany, and Luxembourg.

In July, JD.com launched a €2.2bn offer for German electronics retailer Ceconomy, which runs more than 1,000 MediaMarkt and Saturn stores across Europe. The deal is expected to be completed in early 2026.

JD.com previously weighed a bid for UK-based consumer electricals chain Currys but withdrew its interest in March last year.

NamNews Implications:

• A new kid (with significant potential) is arriving on the block…
• (Hint, hint: ‘one of China’s largest retailers’)
• Suppliers getting in early may find it fractionally easier than playing catch-up later.
• Your colleagues in the EU and China should be able to add substance to your case for action
• ...inside and outside your company...
• Over to you…

Tesco Wins Most Market Share; Battle Between Own-Label And Brands Continues

Latest figures from Worldpanel by Numerator show take-home sales at UK grocers grew by 4.8% over the four weeks to 7 September versus last year, with like-for-like grocery price inflation nudging down from 5.0% to 4.9%.

“Prices might not be climbing quite as quickly, but they’re still on the rise and the battle between own-label lines and brands continues as household finances remain tight,” said Fraser McKevitt, head of retail and consumer insight at Worldpanel.

Supermarket own lines now make up 51.2% of all sales, up from 50.9% a year ago. Sales of these products grew by 5.9% during this period, just ahead of brands at 5.3%. However, premium own-label goods remained the real standout performers, with sales increasing by 10.3% – making it six months in a row that they’ve risen by double digits.

McKevitt noted that brands are holding ground in some categories, including toothbrushes, frozen chicken and baby toiletries, showing that “consumers still value well-known names across some very different parts of the store.”

Autumn signalled a return to work and school for many households, impacting what people bought at the supermarket. In the two weeks to 7 September, sales of lunchbox staples shot up among families with children compared to the previous fortnight. Spending on yogurt rose by 26%, sliced cooked meats by 17% and cheddar cheese by 24%. McKevitt highlighted that while sandwiches remain a popular lunch option, featuring in over half of kids’ lunchboxes, they are disappearing from some school bags as alternatives like cooked poultry become more popular.

Looking at individual retailers, Tesco gained more market share than any other grocer in the 12 weeks to 7 September, now accounting for 28.4% of all sales, up 0.8 percentage points compared to the same period last year. The UK’s largest grocer saw growth across all channels, with spending up 7.7% – its highest rate since December 2023.

Ocado was once again the fastest-growing retailer, with sales rising by 11.9%. It outpaced the wider online market, which was up by 8.2% over the 12 weeks.

Spending through the tills at Sainsbury’s increased by 5.4%, taking its portion of the market up to 15.1%. Asda continued to lose share after recording a 2.7% drop in sales, while Morrisons recorded growth of just 1.4%.

Lidl was the fastest-growing bricks & mortar retailer, with sales up 11.0%, increasing its share from 7.8% to 8.2%. Aldi held its 10.7% share with a sales uplift of 4.7%.

Spending at Waitrose grew 4.3%, while sales of groceries at M&S increased 5.9%.

NamNews Implications:

• Food price inflation remains high, with more Autumn taxes in the pipeline…
• The resulting drift from brands continues…
• …affecting the size of brand premia and thereby the high cost to brands of winning back former loyals.
• Premium own-label sales increasing by 10.3% has to be a major concern to brand leaders in this regard.
• Meanwhile, the combined discounter share of 18.9% has to be of concern to those affected by the drift from mults to Aldi & Lidl.
• While Asda is still in a race against the clock…

Hundreds of Jobs At Risk At B&Q

B&Q has placed more than 670 roles across its business into consultation as part of streamlining efforts.
According to trade publication Retail Week, the business is seeking to reduce the number of deputy manager, trading manager, and team leader positions across its 318 stores and head office.

If the DIY retailer’s plans are approved, 672 roles will be cut, mainly across its stores, while a further 65 will be from its head office.

The report noted that B&Q is consulting with workers impacted by the cuts and is set to offer alternative roles or support packages to staff who cannot be provided with a new position.

B&Q CEO Graham Bell is quoted as saying: “Over the last few years, we’ve evolved at pace to ensure that we can give our customers the very best retail experience. We’ve physically changed our operations so that our stores, apps and online are fully integrated, helping home improvers by giving them more choice, speed and convenience. And we need to keep changing.

“In this dynamic world of retail, we are very much in control of shaping our future. Today’s news would ensure that we continue to evolve and grow market share, by prioritising our resources where we can help our customers most.”

He continued: “The proposals shared with colleagues today – to simplify our retail leadership structure and reallocate time to customer service roles on the shop floor, and to change some head office teams – have meant some difficult choices.

“They impact our dedicated colleagues in retail leadership across all of our stores and in head office functions, and we’ll be doing everything we can to support them.

“Ultimately, it is about setting our business up in the right way so that our colleagues are equipped to give our customers consistently exceptional customer service now and in the future, so that we give home improvers the choice and convenience they deserve.”

B&Q saw its sales increase by 0.4% on a like-for-like basis during its second quarter, which ended on 30 April, supported by a strong performance in e-commerce and the trade segment.

The business experienced improved volume trends in its core categories, particularly tools & hardware, as well as building & joinery. However, this was partially offset by weak sales performance in ‘big-ticket’ categories as consumers remained reluctant to fork out on expensive products amid cost-of-living pressures.

NamNews Implications:

• When demand falls, retailers have to cut to fit profitable opportunity.
• Meaning reduction in staff numbers or sale of outlets.
• Each of which reduces the investment appeal of the retailer to branded suppliers.
• Lower staff numbers can mean lower service level.
• Whilst fewer outlets can mean less access to markets.
• What really matters is perceived impact on shopper loyalty.
• Ask again in six months…

WH Smith Media Fees Of Up To £125k Branded ‘Astronomical’ By Retail Experts

WH Smith is charging brands “astronomical” amounts of money to advertise in its travel stores that they will never see a return on, according to retail experts.

After challenger brands spoke out about the high cost of ‘media packages’ pitched to them by WH Smith last week, a sales deck for 2025 shared with

The Grocer shows the retailer is demanding as much as £125k for two weeks of advertising in a single store location.
 
NamNews Implications:

• Retail is regarded as a ‘try it and see’ environment.
• But this is meant to refer to selling to consumers.
• Successful suppliers are long accustomed to fact-based selling…
• (and subjecting any investment to strict ROI criteria)
• Only natural for them to use the same criteria in moving from a selling…
• …to a buying role in the case of purchasing Retail Media.
• So, back to the price drawing board for WH Smith…
• …or suffer the inevitable consequences.

M&S Food Appoints Blakemore As New Wholesale Partner To Help Improve Availability

M&S Food has appointed A.F. Blakemore & Son as its new primary wholesale partner for third-party branded products.

The move brings to an end M&S’s 15-year+ branded supply deal with Tesco-owned Booker.

M&S stated that the partnership with the SPAR wholesaler will help deliver a “more consistent and reliable shopping experience for customers as M&S continues its journey to become a shopping list retailer”.

Blakemore will deliver directly to M&S’ regional distribution network with a new seven-day-a-week service “ensuring freshness and exceptional quality”.

Under the multi-year agreement, the West Midlands-based family-owned business will supply a selection of branded goods to complement M&S’s own label offer. The retailer noted that the new daily delivery service, with consolidated chilled and ambient supply, will improve product availability and increase operational efficiency.

M&S highlighted that the move underlined its food division’s long-standing commitment to family-owned businesses. Around 20% of its suppliers are family-owned and operated.

Alex Freudmann, Managing Director at M&S Food, commented: “We are thrilled to be backing another British family business, working with A.F Blakemore & Son as our new, trusted wholesale partner.

“Blakemore will be providing an improved wholesale solution with a full seven-day-a-week service that will increase availability for our stores and customers. As we reshape our business for growth and focus on improving availability and efficiency, choosing the right, trusted partners who can deliver on that is key.”

Carol Welch, the wholesaler’s CEO, added: “At A.F. Blakemore & Son we are committed to delivering consistent quality, agility, and service, and it’s a privilege to partner with M&S to help accelerate growth of their Food business.

“This partnership reflects the advances made in our wholesale and food service capabilities and the significant investment in our infrastructure and product ranging.”

NamNews Implications:

• In unprecedented times, ‘outsource to experts, who can perform at less cost’.
• Allowing the business to focus on strengths…
• Meanwhile, the Blakemore service will focus on improving product availability and increasing operational efficiency…
• …by way of justifying the move from Booker.

Aldi Takes Back ‘Cheapest Supermarket’ Crown From Lidl

The latest price comparison by consumer watchdog Which? shows Aldi was the cheapest supermarket in the UK in August, regaining the top spot from its key rival.

Last month, Lidl claimed the coveted ‘cheapest supermarket’ crown after narrowly beating Aldi for the first time since October 2023.

The new data for August shows that the total price of a basket of 75 everyday grocery items came to £127.92 at Aldi, which is 38p cheaper than fellow discounter Lidl, even when deals on its loyalty scheme are included.

Julie Ashfield, Chief Commercial Officer at Aldi UK, commented: “We’re delighted to once again be recognised by Which? as the UK’s cheapest supermarket.

We are committed to providing shoppers with the best possible value, but not only that, we’ve gained this title while always ensuring our product quality remains consistently high.”

Asda was the cheapest of the traditional supermarkets, with the same list of groceries costing £139.42, even though it doesn’t offer loyalty discounts in the same way as its rivals.

NamNews Implications:

• What is really at issue here is that discounters continue to be significantly cheaper than the mults….
• …and are growing share…
• …despite loyalty cards.
• Raising the question re how long shoppers will be willing to pay 35% more for Waitrose quality?

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Former Tesco Exec Appointed New Head Of Waitrose

Less than two weeks after it was announced that James Bailey was stepping down from the role of Managing Director of Waitrose, the supermarket chain has unveiled his replacement.

Tom Denyard, who is currently Managing Director of Tesco’s online business, will become MD of Waitrose in January. He has worked for the supermarket giant since 2015, holding various roles, including CEO of Tesco Mobile, COO of Tesco stores in Malaysia, and multiple food buying positions.

Denyard began his career at Unilever, where he held a variety of roles across sales, marketing, category, strategy and general management. He was also Head of Brand for Food at Marks & Spencer.

“Tom’s blend of brand, customer, commercial and operational experience makes him the ideal person to take the business forward,” said Jason Tarry, the former UK boss of Tesco, who is now Chairman of the John Lewis Partnership.

“I’m confident that under his guidance, Waitrose will continue to thrive and innovate, delivering exceptional quality and service to our customers, building on the impressive progress made by James Bailey and the Waitrose team.”

Denyard added: “Waitrose is a brilliant brand with wonderful values and fantastic Partners, which bring them to life day in and day out for our customers.

“I can’t wait to start the work of building on the terrific progress James and the whole team have made in enhancing the customer offer in recent years, and ensuring Waitrose is the destination for quality food and outstanding service.”

Bailey, who joined the upmarket supermarket in 2020, guided it through a challenging period during the pandemic and cost-of-living crisis. An overhaul of its product offering and store services has helped restore sales growth.

And last year, Waitrose announced plans to inject £1bn in opening new stores and improving existing sites.

Bailey will leave Waitrose at the end of this month, with Tina Mitchell, currently Retail Director, stepping up as Interim Managing Director until Denyard arrives.

NamNews Implications:

• 10 eventful years at Tesco should count for a lot at Waitrose.
• And should dovetail nicely with former Tesco colleagues in the new role.
• Anticipate a quickening of pace at Waitrose…

Better Month For Brands; Lidl Close To Overtaking Morrisons And Tesco Makes Gains

Worldpanel by Numerator data shows take-home sales at leading UK grocers up 4.0% over four weeks to 10th August, with price inflation down from 5.2% to 5.0%.

Fraser McKevitt, head of retail and consumer insight at Worldpanel: “What people pay for their supermarket shopping often impacts their spending across other parts of the high street too, including their eating and drinking habits out of the home. Casual and fast service restaurants especially have seen a decline in visitors over the summer, with trips falling by 6% during the three months to mid-July 2025 vs last year. The outliers in this are coffee shops, which have bucked the trend.”

Sales of branded grocery items grew by 6.1% this month, putting them ahead of own-label alternatives, which were up by 4.1% – the largest gap in favour of brands since March 2024. Branded sales now makes up 46.4% of all grocery spending but are particularly dominant in personal care, confectionery, hot drinks and soft drinks, where they account for more than 75% of money through the tills.

While a far smaller part of the market, premium own-label is also continuing to perform well, with sales rising by 11.5% during this period.

Looking at the performance of the leading grocers, Lidl and Ocado were tied for top spot as the fastest-growing grocers over the 12 weeks to 10th August, with sales at both retailers up by 10.7% compared to the same period last year.

Lidl’s share of the market increased by 0.5 percentage points to 8.3%, keeping it just behind Morrisons, which now controls 8.4% of the market after seeing sales growth of only 0.9%. Earlier this month, it was reported that Lidl is now the UK’s fifth-biggest supermarket in terms of food and drink sales, having overtaken Morrisons in July.

Tesco achieved its largest monthly share gain since December 2024, with its hold of the market increasing by 0.8 percentage points to 28.4% after delivering sales growth of 7.4%.

Spending through the tills at Sainsbury’s was up 5.2% on last year, taking its portion of the market to 15.0%. Sales at Aldi were 4.8% higher, giving it a 10.8% share.

Asda’s sales slipped 2.6%, but this was a slight improvement on the 3.0% fall last month, suggesting its turnaround strategy could be yielding results.

It was also another disappointing month for convenience specialist Co-op, with its share falling to 5.4% after a 3.2% decline in sales.

NamNews Implications:

• Patently, there is money for premium, brand or own label, rain or shine…
• But the standout has to be dependence on inflation to maintain the ‘appearance’ of growth.
• (with obvious exceptions…)
• Meanwhile, the combined market shares of Aldi & Lidl at 19.1% has to be of concern to rivals and suppliers alike.
• And Tesco and Sainsbury’s continue to grow their share at the expense of Morrisons…
• …and an Asda racing against the clock.

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Crisis Deepens For Independent Retailers With Nearly Half Seeing Sales Fall

New data highlights that the high street crisis has deepened significantly, with nearly half of independent retailers reporting that their sales have fallen compared to last year.

The figures, released by the British Independent Retailers Association (Bira), show that 46% of businesses suffered worse second-quarter trading in 2025 compared to the same period in 2024, as consumers reined in their spending due to stretched household budgets.

The Heartbeat survey, conducted over two weeks from July to August, gathered responses from Bira Group members and the Association of Cycle Traders (ACT). While 45% of respondents said Q2 was much or somewhat better than Q1, this improvement came against the backdrop of Q1 traditionally including the January sales period, with Q2 typically representing quieter trading months.

More concerning, only 13.8% reported Q2 was better than Q2 last year, highlighting year-on-year challenges.

Retailers cited squeezed household finances as a primary concern, with one respondent noting: “Money appears to be tight for households; everyday costs leave households with very little to play with for extra luxuries.”

Another observed that “good weather was keeping people out of the high street.”

When asked about government priorities for the autumn statement, 47% of respondents identified business rates reform as the most critical issue requiring attention. Other priorities included minimising national minimum wage increases, addressing cybercrime, and increasing government spending on policing.

One retailer warned: “The threat of additional tax rises and the outcome of the budget in the autumn may cause further anxiety among consumers and put pressure on sales in the crucial Christmas period.”

Andrew Goodacre, CEO of Bira, commented: “These findings paint a concerning picture of the challenges facing Britain’s independent retailers. With household budgets under pressure and business confidence fragile, our members are facing a perfect storm of rising costs and uncertain consumer demand.

“The government must recognise that independent retailers are the backbone of our high streets and take decisive action to reduce the amount retailers actually pay for business rates, especially as next year many thousands will pay more. Without this support, we risk losing the diverse, vibrant retail landscape that makes our communities special.”

NamNews Implications:

• Given the government’s focus on filling ‘black holes’…
• …breath-holding re a fundamental reform of business rates in the Autumn Budget might not be advisable.
• In fact, pragmatists can benefit more from constant monitoring of their exposure to key retailers...
• i.e. Divide the average amount of credit outstanding by your net margin on that retailer and multiply by 100...
• ...to calculate the incremental sales required should the retailer go bust.

Iceland Foods To Reward Customers Who Report Shoplifters

Amid the significant rise in shoplifting across the UK, Iceland Foods has announced that customers who spot thieves in its stores will be eligible for a reward via its Bonus Card loyalty scheme.

The frozen food chain is encouraging shoppers to alert staff if they see anyone shoplifting in the aisles. In doing so, they will be eligible for a £1 reward, which will be credited to their Bonus Card and available to spend immediately.

“The scourge of shoplifting on our high streets continues to plague the UK, and the problem is only worsening, with criminal activity spreading across, not just big cities, but our market towns and villages too,” said Richard Walker, executive chairman of Iceland Foods.

“In order to combat any activity in Iceland stores, we’re encouraging our loyal customers to help sound the alarm, and if they do help to catch a shoplifter, we’ll top up their Bonus Card to spend in store.”

The Office for National Statistics (ONS) revealed last month that the number of shoplifting incidents rose 20% to 530,643 during the year to the end of March, marking the highest number since records began in 2003.

NamNews Implications:

• No one doubts the havoc caused by shoplifting.
• But this initiative takes Iceland into dangerously sensitive legal territory
• i.e. suppose a loyal shopper overreacts and actually challenges a thief?
• i.e. what if a thief notices the shopper telling staff, and retaliates outside the store?
• For those in any doubt, shoplifters are currently threatening to attack store staff with alcohol bottles!
• Hence why some mults are warning staff to ignore shoplifters…

M&S Surpasses Food & Drink Market Share Of Co-op

M&S has become the seventh-biggest retailer of food and drink products in the UK after overtaking Co-op.

According to unpublished Worldpanel data seen by trade publication The Grocer, M&S’s food and drink market share was 5.1% over the 52 weeks to 13 July, compared with Co-op’s 4.7%. In the previous 52-week period, Co-op had a higher share of 4.9% compared to M&S’s 4.7%.

The report noted that M&S’s food and drink sales have grown by 11.5% year-on-year, while Co-op’s were unchanged.

The Grocer’s report noted that the food and drink market share data, which is distributed privately to retailers, includes sales of fresh, chilled and ambient groceries but not alcohol, household, toiletries or healthcare. It is different to the grocery market share data published monthly by Worldpanel – formerly Kantar – which relates to all expenditure through store tills (excl. petrol and in-store concessions).

The monthly published data also do not include market share figures for M&S, as it falls outside the research group’s definition of a grocer due to its clothing & home business.

Despite a recent cyberattack impacting its operations, M&S has also increased its lead over Waitrose in food and drink sales. The report stated that Waitrose’s share was 4.5% in the 52 weeks to 13 July, meaning M&S’s lead has grown from 0.3 percentage points to 0.6 percentage points over the last year.

Co-op told The Grocer that it regards Worldpanel’s take-home methodology as an incomplete gauge of its performance, arguing it ignores a large chunk of its sales as a convenience retailer.

A Co-op spokesperson is quoted as saying: “We are proud to be the leading UK convenience retailer, not a supermarket, with a market share 12.7%, as reported by Circana, who measure all convenience categories, whilst Kantar [Worldpanel] excludes circa 30% of our sales, including many food and drink categories such as food to go, confectionery and soft drinks.

“We continue to grow ahead of the convenience market and also hold nearly 25% of the UK quick commerce market.”

A Worldpanel spokesperson commented: “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.”

Earlier this month, the same food and drink data put Lidl ahead of Morrisons for the first time.

NamNews Implications:

• As always, market share ranking, however cut… 
• …will have an impact that is psychological and will differ by audience.
• i.e. uplifting for M&S….
• …troubling for Co-op.
• Meanwhile, food & drinks markets are in a state of flux...
• ...wherever you stand.

Asda’s New Supplier Portal Plagued By Problems

Following reports this week that Asda is close to completing its £1bn Project Future IT separation from Walmart, it has now been revealed that food and drink manufacturers are complaining about problems with the supermarket’s new supplier portal.

According to trade publication The Grocer, Asda is in the process of speaking to groups of suppliers to try to tackle issues with the new system, with one supplier describing the situation as “an utter mess”.

The report stated that major problems have been reported with Asda’s transition to its new ADR system, which is used by suppliers for forecasting, sales data, and stock control issues. This system has been introduced to replace Walmart’s Retail Link system.

Former Asda buyer Mervyn Jones, who runs a consultancy supporting companies on how to use new systems, said that the transition from a system buyers knew “inside out” to Asda’s new system was beset with problems.

“ADR is so bad I don’t know where to start with it,” Jones posted on LinkedIn. “I have a number of contacts within Asda. Some of them are telling me not to use Retail Link anymore and to move completely across to ADR. ADR, however, says to use Retail Link for historical data.

“Other contacts in Asda say to continue using Retail Link for forecasting and that ADR’s data is incomplete. It’s a mess. A complete and utter mess, and the training Asda is offering online is not up to scratch.”

Another source quoted by The Grocer said: “Moving to a new system at the same time as Asda is going through other major changes as a business was always a recipe for complexity.

Suppliers rely on these systems for key information on stock movements, waste and stock control, and historically, Asda’s system has been top of the tree.

“That’s not the case anymore, and suppliers are not getting the same speed of information. Data on products they use to get at the start of the day is now coming much later.

“To Asda’s credit, they are being transparent about these problems and talking to suppliers to try to tackle these issues, but at the moment, it is causing a lot of issues.”

The report noted that Asda was engaging with suppliers as they transitioned from Retail Link to the new supplier portal.

A company source told The Grocer that Asda had expected a “period of adjustment” and was actively working with suppliers to ensure they were supported throughout this period, including offering training and guidance materials.

NamNews Implications:

• Already in a race against the clock.
• Asda could have done without ‘teething troubles’ associated with a £1bn IT conversion project..
• At a time when willing suppliers are trying hard to lend support to a key retail player…
• Whose rival retailers present increasingly appealing trade investment opportunities..
• These unprecedented times tick on remorselessly…
• ...fast leaving Asda with the option of going for broke, regardless.

Bank Of England Expects Food Inflation To Hit 5.5% This Year

After cutting interest rates yesterday, the Bank of England warned that climbing food prices will cause inflation to surge even higher in 2025.Economists at the Bank blamed rising food prices on several factors, including changes to packaging regulations and increased labour costs, as a higher proportion of workers in the retail sector are paid the national living wage, which the Chancellor Rachel Reeves increased by 6.7% in April.

They also blamed higher employment taxes announced in the Autumn Budget, saying: “Furthermore, overall labour costs of supermarkets are likely to have been disproportionately affected by the lower threshold at which employers start paying NICs… these material increases in labour costs are likely to have pushed up food prices.”

Responding to the Bank of England’s comments, Helen Dickinson, Chief Executive at the British Retail Consortium, said: “The Bank of England report outlines how the last Budget continues to push up food prices.

Government policy will add £7bn to retailer costs this year, from higher employment costs to the introduction of a new packaging tax. Food prices have already been climbing steadily, and the BRC has warned this is only the beginning, food inflation means poorer families being hit the hardest by the Treasury’s decisions.

“While retailers are doing everything they can to shield their customers from rising prices, their ability to absorb further costs is extremely limited. If government goes ahead with its planned higher business rates threshold for 4,000 larger stores – including many supermarkets – then it will be ordinary households who suffer the most.”

Food and Drink Federation (FDF) Chief Executive, Karen Betts, added: “Food and drink inflation is rising noticeably again and currently this shows no signs of easing.

Global energy and commodity prices are rising once more, and this comes on top of new taxes and regulatory costs, like higher employer National Insurance Contributions and this year’s new packaging tax.

Food and drink manufacturers try to absorb as many of these costs as possible to protect shoppers, but the fact is that making food and drink in the UK is more and more expensive to do.

“It’s critical that government takes decisive action to cut red tape and promote growth and investment across the food and drink sector, including ensuring there are no further cost increases to businesses in our sector in the autumn Budget.”

NamNews Implications:

• Meanwhile, consumers are driven by perceived inflation…
• …especially for food.
• (and more government-caused cost increases in the pipeline)
• A perception that it is more than the official stats.
• Anyone in real doubt, try doing the household shopping, alone for a few months…
• ...and study the actions of fellow shoppers.
• Anticipate increased switching to own-label equivalents and discounters.

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…