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

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

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

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

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

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

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

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

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

NamNews Implications:

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

Sainsbury’s Shakes Up Management Team

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

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

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

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

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

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

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

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

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

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

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

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

NAM Implications:

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

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

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

New store locations opening in the coming months include:

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

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

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

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

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

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

NamNews Implications:

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

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

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

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

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

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

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

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

NamNews Implications:

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

Supermarket Price War Impacting Profits At Iceland

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

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

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

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

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

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

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

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

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

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

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

NamNews Implications:

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

Asda Planning Major Upgrade To Stores In Yorkshire

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

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

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

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

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

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

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

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

NamNews Implications:

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

Lidl Overtakes Morrisons In Food & Drink Share Ranking

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

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

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

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

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

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

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

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

NamNews Implications:

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

Supermarket Loyalty Waning

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

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

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

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

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

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

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

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

NamNews Implications:

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

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

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

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

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

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

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

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

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

NamNews Implications:

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

Private Label Seeing Strong Growth In The US Grocery Market

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

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

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

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

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

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

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

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

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

NamNews Implications:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

NamNews Implications:

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

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

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

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

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

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

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

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

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

NamNews Implications:

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

hashtag

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

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

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

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

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

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

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

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

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

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

NamNews Implications:

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

Asda Cutting Some Store Manager Roles In Bid To Reduce Complexity

Asda is removing a layer of middle management across its store estate as part of Chairman Allan Leighton’s wider strategy to revive the struggling supermarket.

A report by The Telegraph said the internal shake-up will result in a number of in-store manager roles being made redundant to “take out complexity” from the business.

Asda is combining its ‘section manager’ and ‘trading manager’ roles into a single ‘manager’ post, who will report to operation managers.

The section managers are a layer of in-store middle management who supervise team leaders and teams of shelf stackers. Meanwhile, the trading managers are more senior and have responsibility for “driving sales and standards”.

Asda noted the shake-up will mean around 20% of store management will effectively be promoted to the new combined ‘manager’ post, while other managers will no longer be needed because of the duplication of roles.

Asda has not commented on how many people could be made redundant, but some are being asked to move to different nearby stores.

However, workers in larger supermarkets have already been placed on gardening leave, with sources claiming the number of people in management roles was being halved in some stores. The shake-up does not affect Asda Express stores.

A spokesperson for Asda said: “The investment in this new structure brings decision-making closer to the shop floor, and our customers, by clarifying roles and providing clearer accountabilities.

It also creates more opportunities for colleagues to develop their careers and progress into store management roles, with a significant number of immediate promotions confirmed today. We will be offering our full support to other colleagues impacted by the changes.”

It is the latest round of job cuts at Asda since Leighton rejoined as its Chairman in November, promising to improve the chain’s competitiveness and store standards.

Earlier last week, it was reported that Asda is asking major manufacturers to make big price cuts as part of its strategy to win back customers.

NamNews Implications:

• Not an easy decision…
• …especially in terms of morale of those not leaving.
• Asda presumably in a ‘cut to fit’ mode.
• i.e. With reduced demand, one approach can be to reduce resources...

Lidl Crowned ‘Grocer of the Year’ At Industry Awards

After another period of strong sales growth and store expansion, Lidl has won the ‘Grocer of the Year’ title at The Grocer Gold Awards that took place in London’s Royal Albert Hall on Wednesday night.

Adam Leyland, The Grocer’s editor-in-chief and chair of the judging panel, commented: “Lidl was the one notable exception in 2024 when the growth of the discount sector slowed. It was the fastest-growing bricks & mortar supermarket for the entirety of 2024.”

Meanwhile, Tesco was crowned ‘Britain’s Favourite Supermarket’ for the 11th consecutive year, as voted by shoppers. Asda took the ‘Grocer 33 Price Award’, while Waitrose won two Grocer 33 awards for availability and customer service.

Doritos took home the ‘Food Brand of the Year’ award, and Persil was crowned ‘Household Goods Brand of the Year’.

Meanwhile, Aldi’s Specially Selected range took home the gong for the ‘Own Label Range of the Year’.

View the full list of The Grocer Gold Awards 2025 Winners 

NamNews Implications:

• Worth a pinch to remind oneself that these were the guys that dared to enter sophisticated UK retail 31 years ago.
• And ‘made a go of it’, to understate the obvious!
• Just commenting…

Currys Boss Urges Government Not To Raise Taxes On Retailers

The boss of Currys, the UK’s biggest electrical goods retailer, has urged the government not to increase taxes on retailers this year, saying it would damage investment and force prices to rise.

Alex Baldock, the retailer’s chief executive, said: “We urge government not to make a further contribution to the tax burden as that would further dampen investment and increase prices in an inflationary way.

“I would urge government to think very carefully before making the situation worse.”

Read the article on The Guardian website

NamNews Implications:

• Unfortunately, the government is hungry for tax income.
•  Especially following successive U-turns…
• …that demonstrated little real evidence of anticipating the business consequences...
• Limited breath-holding is recommended in awaiting any improvement…
•  i.e. In a flat demand market, Best focus on growing at the expense of rivals...

Morrisons Overhauling Meat Counters

A new model is being introduced to Morrisons’ fresh meat counters as part of moves to revive its fortunes.

In-store butchers will now cut meat at the start of the day into several different sizes, which will then be packaged up ready for sale.

The range will be the same as before, but displayed on a flatbed so customers can help themselves, rather than having to ask butchers for individual cuts.

Morrisons claims the move will help free up butchers’ time as they will no longer have to work on creating curated meat displays each day. However, butchers will still be available to assist shoppers who want meat cut to a specific size or thickness.

Morrisons has set a target of rolling out the new meat counter format to 100 stores by the end of 2025, with around 60 already being altered.

A spokesperson for Morrisons said: “We are moving at pace with the modernisation of Market Street as part of our Morrisons Magic programme, and following successful trials, we’ve begun to roll out flatbeds in our butchery departments.

“These showcase the same range, with the freshness and quality that Market Street is renowned for, but with a more modern and contemporary look. They offer both the convenience of self-service for customers that prefer it and the traditional individual service from an in-store butcher.

“Customer reaction has been very positive, and we’re aiming to have the new look in 100 stores this year.”

Morrisons recently posted a rise in profits and revenues during its second quarter after it “bounced back strongly” from the cyber attack last year that impacted its trading ahead of Christmas.

During the period, it commenced trials of several new projects in-store, including a new look Market Street format with Farm Shop influences and more added-value products.

NamNews Implications:

• Morrisons will have sufficient customer behaviour data to calculate quantities required in advance cuts.
• Whilst retaining in-store butchers available to assist customers and tweak quantities as required...
• (with added convenience).
• All preserving the Look & Feel of their unique Market Street concept.
• A neat addition to the Market Street offering that made Morrisons different…

Tesco Sees Jump In Market Share As Consumers Shop Little And Often Amid Rising Temperatures And Prices

Kantar Latest: Grocery footfall a five-year high (4 weeks to 15 June), take-home sales up 4.1% vs 2024, jump in shopping frequency despite grocery price inflation 4.7% highest since February 2024, vs previous month 4.1%

Fraser McKevitt, head of retail and consumer insight at Kantar: “Higher prices didn’t stop shoppers making 490 million trips to the supermarket over the latest month, averaging almost 17 per British household. That’s the highest we’ve recorded since March 2020.” 

However, the rise in frequency was balanced out by a drop in average trip spend (down by three pence to £23.89).

McKevitt added: “Consumer concerns over price are continuing, and this is reflected in the figures. Sales of own-label ranges grew at 4.2% this month, ahead of branded lines, as shoppers looked to balance their budgets. Deals also remain an important tool for retailers to offer value, and the proportion of spending on promotion stepped up to 28.8% this period.”

Overall grocery volumes fell 0.4% in the last 4 weeks, the first year-on-year decline this year. Kantar suggested that a small part of this fall could be down to changing health priorities, including growing use of GLP-1 weight loss drugs (4 in 100 UK households in Great Britain now include at least one GLP-1 user, almost twice vs 2024). Four in five of the users Kantar surveyed say they plan to eat fewer chocolates and crisps, nearly 3 in 4 intend to cut back on biscuits.

Ocado was the fastest-growing grocer again, sales up 12.2% in 12 weeks to 15 June 2025 (more frequent visits to its website, strong performance in London and Southern England, market share 1.9%).

Traditional grocers:
Lidl was fastest growing at 11.2% (3rd consecutive month double-digit) - share 8.1%
Aldi share 10.9%, sales up 6.5%.
Tesco sales up 7.0%, share 28.1%.
Sainsbury’s share 15.2%, sales up 5.7%.
Morrisons’ grocery share slipped to 8.4% after spending in its stores only up 2.2%.
Asda’s share fell to 11.9%, till-sales down 1.7% vs the same period 2024, albeit an improving trend with growth expected to return over the summer months.
Waitrose sales up 5.5% – its best result since March 2021.
M&S grocery sales up 12.0% (cyber attack recovery)

NamNews Implications:

• The jump in shopping frequency (‘highest Kantar recorded since March 2020’) could also be a reflection of the tendency to shop around.
• Switching to own-label equivalents (sales up 4.2%) continues…
• …carrying with it the risk that ‘satisfied’ switchers might stick with the habit…
• …given the smaller-than-expected compromise.
• Lidl (sales up 11.2%) and Aldi (sales up 6.5%) now have a combined share of 19.0% (!).
• Tesco powers on (sales up 7%, share 28.1%) and Sainsbury’s (sales up 5.7%, share 15.2%)
• i.e. Tesco-Sainsbury’s and Aldi-Lidl have a combined share of 62.3%…
• …surely representing a continuing threat to Morrisons and Asda’s recovery ambitions.
• Maybe time for suppliers to rebalance retailer trading priorities?

Sainsbury’s Hikes Cost Of Meal Deal Again

Sainsbury’s has increased the cost of its standard meal deal by 5% – the second hike in less than a year.

According to trade publication The Grocer, the price of a main product, a side, and a drink at the supermarket has risen this week from £3.75 to £3.95. This follows a 25p increase in July 2024, meaning the price of the Sainsbury’s meal deal has increased by 12.8% over the last year.

The cost of its premium meal deal has remained unchanged at £5 since it was introduced in 2022.

Sainsbury’s did not tell The Grocer what was driving the latest price increase. However, the report noted that the supermarket has recently expanded its food-to-go range, adding 35 new products.

The hike means Sainsbury’s meal deal is now priced significantly higher than its rivals. Tesco’s equivalent meal deal costs £3.60 for Clubcard members, whilst Morrisons charges £3.60 for More Card holders.

A Sainsbury’s spokesperson insisted that it “continued to offer one of the best value meal deals around”.

NamNews Implications:

• Consumers who benchmark inflation by the official stats…
• …will perceive a 12-month 12.8% increase in price of a Meal Deal as greater than inflation.
• Couple this with the fact that Sainsbury’s ‘meal deal is now priced significantly higher than its rivals’…
• …means that Sainsbury’s and rivals will watch consumer reaction with interest.

Retail Sales Tumble After ‘Dismal’ Month For Supermarkets

Retail sales in the UK suffered their steepest drop in 18 months last month as consumers cut back on purchases of food and household goods.

Figures from the Office for National Statistics (ONS) show sales volumes slid 2.7% month-on-month in May, a much worse result than the 0.5% decline forecast by economists.

After a 4.7% jump in April, food stores saw a drop of 5% in May. This was led mainly by reduced volumes in supermarkets as shoppers made cutbacks amid rising inflation in the sector, alongside reduced sales of alcohol and tobacco products.

In non-food stores, sales volumes slid 1.4% over the month, mainly because of falls in clothing (-1.8%) and household goods (-2.5%). The downturn was blamed on reduced footfall and consumers completing home projects earlier than usual this year because of good weather.

The monthly fall is the first this year and follows a 1.3% rise in April when unusually sunny weather boosted demand. On a year-on-year basis, retail sales volumes were down 1.3% in May.

The disappointing figures come amid growing evidence that the UK economy is cooling after a robust start to the year. The economy contracted in April by 0.3% (ONS) as businesses cut jobs and cancelled investment plans in response to higher taxes and the uncertainty created by Donald Trump’s tariff war.

Paul Dales, Chief UK Economist at Capital Economics, commented: “The sharp 2.7% m/m drop back in retail sales volumes in May adds to other evidence that the burst of economic growth in Q1 is over. That said, consumer spending may still outperform other areas of the economy this year.”

Meanwhile, Nicholas Found, Head of Commercial Content at Retail Economics, said: “May’s retail performance underlines a shift in consumer behaviour, with households putting value at the centre of spending decisions and pulling back on non-essential purchases. This follows a tough April that saw discretionary budgets squeezed by rising household bills.

“The cost of living remains the dominant concern for households. An uptick in food inflation is especially visible to shoppers, acting as a psychological anchor on confidence that hits non-essential retail spending.

“Households are deferring spending on full-price fashion, big ticket home items and other discretionary goods, instead prioritising travel and experiences into the summer.

“Retailers are now in the precarious position of needing to stimulate demand without eroding margins. But with a £6.5bn surge in operating costs this year, driven by increases in employment costs, business rates and utilities as our research with Barclays Corporate Banking shows, many are entering the summer trading period under significant pressure.”

NamNews Implications:

• Hopefully, only the authorities are surprised by these developments…
• i.e. any realistic business sees a market made up of uncertainties and inevitabilities…
• …where any real growth has to come at the expense of rivals.
• Deep down, people don’t trust what they are being told…
• …and are cutting back accordingly.

Waitrose Announces Plan To Open First New Supermarket In Seven Years

Waitrose has revealed plans to open its first new full-line supermarket in seven years. The 30,000 sq. ft. store will be built at Brabazon, a new town in North Bristol, and is expected to open in 2027.

The grocer signed a multi-million-pound agreement with developer YTL Developments to secure the site. The new supermarket will be located in a prime position on the A38 Gloucester Road at the gateway to Brabazon and 500m from a new train station, which is expected to open in 2026.

It will occupy the ground floor of a seven-storey office building, served by an adjacent multi-storey car park with space for over 1,500 vehicles.

Last year, Waitrose announced plans to inject £1bn over the next three years into new stores and improvements to 150 existing shops, almost half of its estate. Whilst it has opened several convenience stores in recent years, it hasn’t opened a new full-line supermarket since before the pandemic.

In May, Waitrose opened its first new store outside London in over six years, with a new convenience outlet in Southwick, West Sussex. Another Little Waitrose shop is due to open in St Andrews, Bristol, before the end of the summer. And later this summer, two more franchised stores will open at Welcome Break road service areas in Hickling, Leicestershire and Newark, Nottinghamshire.

Meanwhile, more than 20 Waitrose sites will undergo refurbishments this year, almost double the number year-on-year.

“We are moving up a gear in store investment as we open in new locations and modernise our existing estate to bring the quality, service and value that customers love about Waitrose closer to more people,” said James Bailey, Managing Director of Waitrose.

“Brabazon is one of the most exciting new city districts in the UK, driving the growth of one of the UK’s most vibrant and successful regional economies. Partnering with YTL Developments at Brabazon underlines our ambition and the opportunity we believe we have to grow our reach.”

NamNews Implications:

• Waitrose appears to be sufficiently confident in their turnaround…
• …that they are committing to new store investment and an upgrading of the current estate.
• With the plan for a new supermarket being an overt demonstration of their intent…
• …time for suppliers to reassess their Waitrose trade strategies in order to keep pace.

Tesco Sent Stock To Retailers Impacted By Cyber Attacks

Tesco’s CEO has revealed that the group’s wholesale arm stepped in to supply extra stock to Marks & Spencer and some Co-op societies when their operations were impacted by cyber attacks last month.

Speaking after posting robust first quarter results yesterday, Ken Murphy said that M&S and some of the Co-op’s independent societies asked Booker for support sourcing products while their supply systems were down.

“Over the period when they’ve been impacted, Booker has supplied both M&S and Co-op with products and supported them in any way they could,” he told The Times. “They asked us to supply products, and we said yes.”

In M&S’s case, Booker is understood to have increased deliveries of third-party branded items, such as Marmite and Coca-Cola, and shipped more items directly to shops.

The main Co-op Group did not request assistance for its stores, but the report by The Times said that some of its independent societies temporarily turned to Booker.

The support was short-term, and both companies have since restored their operations after the cyber attack.

Last week, Co-op said its recovery from the hacking incident was nearly complete.

M&S was arguably the worst affected, with it facing a hit of around £300m from the attack. Data released this week confirmed that sales in its food stores fell significantly during the period after it struggled to keep shelves stocked.

Tesco, which yesterday reported a better-than-expected 5.1% increase in like-for-like sales during its first quarter, insisted that this had not been because of the cyberattacks at M&S and Co-op. “We haven’t seen any uptick in activity or attacks since some of our competitors were attacked,” Murphy said. “We haven’t seen any material changes.”

He emphasised that cybersecurity was at the “top of my inbox on a daily, weekly basis”, adding: “We stay on top of cyber all the time. We have invested continuously in upgrading our cyber capabilities because this is a moving target all the time. As the sophistication of potential attackers improves, we have to keep investing behind it.

“We stay very vigilant. We invest substantially behind it. We seek to learn from what’s going on in the industry”.

NamNews Implications:

• This brought to mind an old comment picked up from a retailer in Tokyo about its rivals:
• “Of course we compete, but only on certain things”
• Tesco’s move will not be forgotten…

Poundland’s Sale Exposes Cracks In Value Retailer

Following yesterday’s news that Poundland has been sold for less than £1 to turnaround firm Gordon Brothers, Emily Scott, retail analyst at GlobalData, offers her view:

“Poundland’s sale comes amid mounting losses and declining revenue, as it has faced intense competition and the distraction of the failed introduction of its Pepco clothing and general merchandise range.

“Poundland’s appeal was rooted in its straightforward approach to value with a single price point. However, in recent years, the retailer has strayed far from this. The introduction of multiple price points has confused customers, while still not enabling shoppers to trade up within its ranges as it lacks the additional choice of mid to premium products. Poundland has lost out as consumers are becoming more discerning, seeking a better balance between quality and value for money, driving them to trade up.

“The British variety store chain has also faced increasing competition from the grocers, particularly as Tesco has leveraged its Clubcard loyalty scheme to offer customers exclusive discounts and enhanced value.

“GlobalData estimates that Home Bargains, B&M and The Range’s market shares in the UK discount market have increased by 7.2ppts, 6.2ppts and 1.3ppts, respectively, between 2019 and 2024, while Poundland’s share has fallen 2.3ppts. Poundland’s weak variety of branded goods at low prices has meant it has struggled to keep pace, damaging its brand perception amongst budget-conscious shoppers.”

NamNews Implications:

• Poundland’s success to date depended on decades of near-zero inflation.
• Meaning the £1 proposition was viable for much longer than normal.
• A return to ‘proper’ inflation rates undermined everything.
• With the inevitable result.
• Good while it lasted…

Sales Growth Accelerates At Tesco Despite ‘Intensely Competitive’ Market

Tesco has reported better-than-expected first-quarter sales growth as improvements in its product range and price competitiveness helped it win market share from rivals. However, the UK’s leading grocer left its annual profit guidance unchanged, with its CEO Ken Murphy noting that the market “remains intensely competitive”.

UK like-for-like sales up 5.1%, 13 weeks to 24th May vs 4.3% rise in previous quarter, 24 consecutive four-week periods of market share gains, now 28.0%, highest since 2021.

Tesco said its success was due to a 65bps YoY uplift in its brand perception (improvements in service, quality, and value). It price matches Aldi on 600 lines, 9,000 Clubcard Prices/week.

During the quarter, Tesco’s food sales were up 5.9% via fresh categories and 350 new Finest products, sales up 18% (home dining)

Non-food sales (excluding toys) up 6.2% via home and clothing.

Growth in all channels, (online sales up 11.5%, market share up 163bps).

Murphy: UK outcome reflected “our powerful value proposition, strong availability and focus on product quality and innovation”.

Republic of Ireland LFL sales up 5.5% (continued investment in fresh drove food sales up 5.8%).

Booker LFL sales up 2.0% (continued decline in tobacco and its Best Food Logistics unit) - catering sales up 7.3% and retail business up 5.4% (symbol brands).

Central Europe LFL sales up 4.1% (produce, dairy and bakery categories drove fresh food sales up 7.3%).

It still expects to report adjusted operating profit of £2.7bn to £3.0bn for year ending Feb 2026, vs £3.13bn 2024/25.

It had revealed in April that it expected profit to fall this year as it set aside cash to deal with a step-up in the “competitive intensity” of the British grocery market – (Asda pledge of sustained Asda price cuts to win back market share).

“We’re definitely seeing an intensification in competition, I think that broadly, though, it’s been a rational intensification, in the sense that everybody is kind of staying toe-to-toe with each other,” Murphy told reporters.

“So you’re not necessarily seeing massive movements in relative competitiveness, but everyone has, I think, upped their game a notch.”

He noted that price inflation at Tesco was running below the industry rate, which rose to 4.1% in May (Kantar).

Most analysts think Tesco’s strategy of price matching Aldi on key lines, together with its popular Clubcard Prices promotion, is working well. It is also becoming increasingly digital and developing growth avenues such as its online Marketplace and retail media unit.

“Tesco appears to be in a better position than many of its peers,” said John Moore, wealth manager at RBC Brewin Dolphin.

NamNews Implications:

• Tesco is patently firing on all cylinders…
• …and making it work, in unprecedented market conditions…
• …whilst determined to neutralise Aldi’s potential competitive edge.
• (It follows that they will increasingly require similar market fitness from its partner-suppliers)

Sainsbury’s Trialling ESLs

Sainsbury’s has become the latest supermarket to start testing electronic shelf labels (ESLs) that can offer significant efficiencies for store operations.

The retailer has installed the technology in three of its larger shops and has been trying it out across different sections, including alcohol, health, and general merchandise.

Replacing paper shelf edge labels with ESLs can offer retailers several advantages, including being able to display more product data and change prices instantly without the need for time-consuming manual updating by shop floor staff.

Price discounts and promotions can also be communicated more easily, whilst eliminating paper waste associated with traditional labels.

A spokesperson for Sainsbury’s said: “We are trialling electronic shelf-edge labels in a small number of our stores,” without providing any further details.

Last month, Co-op confirmed that it is working with VusionGroup to replace paper shelf edge labels with ESLs across all its 2,400 convenience stores.

Waitrose and Asda have also started trialling them in some of their convenience stores, whilst Lidl, Aldi, and several regional Co-operatives have been rolling out ESLs in recent years.

Despite the benefits, the leading multiples, including Tesco and Sainsbury’s, have been slow to adopt the technology.

NamNews Implications:

• Surprising it took so long…
• But now inevitable, in terms of adding some tweaks to on-shelf availability.
• (and providing another way to optimise Retail Media…)

New Rumours About Merger Of Aldi Nord And Aldi Süd

There are fresh rumours that the two Aldi entities – Nord and Süd – are discussing a merger, ending a separation that has lasted over 60 years.

German business magazine WirtschaftsWoche reported that discussions between the Heister family, which owns Aldi Süd, and two strands of the Albrecht family, which owns Aldi Nord, have been going on for several weeks.

Sources said a possible deal scenario included the two companies combining under a joint holding company with shares evenly divided between the families’ trusts.

The report noted that while a merger was initially targeted by the end of the year, this is now viewed as unrealistic. WirtschaftsWoche said a first step might be for Aldi Süd and Aldi Nord to combine their IT systems.

Aldi split into two distinct groups in 1961 due to an alleged difference in opinion between the founding brothers, Theo and Karl Albrecht, over whether to sell cigarettes.

The Aldi group as a whole operates over 12,000 stores worldwide. Aldi Nord is responsible for the stores in Northern Germany, Belgium, France, Luxembourg, the Netherlands, Poland, Portugal, and Spain.

Meanwhile, Aldi Süd’s responsibilities cover Southern Germany, Australia, China, Ireland, the UK, the US, and through its Austrian subsidiary, Hofer AG, Austria, Hungary, Italy, Slovenia, and Switzerland.

Internal disputes among family heirs had previously obstructed any strategic coordination between the two chains. However, following a series of court cases and a structural overhaul of Aldi Nord’s governance, the families have been pursuing closer alignment.

Whilst both use different branding, they follow a similar model and have been harmonising their ranges and product development in recent years.

A unified Aldi could pose a serious challenge to global competitors such as Lidl, Walmart, and Carrefour. Combining resources would result in greater purchasing power, streamlined supply chains, and coordinated international expansion.

Analysts believe that a merger could also allow Aldi to accelerate investments in digital retail and e-commerce, an area in which it has struggled to make an impact.

Whilst the families might ultimately pursue full consolidation, cultural differences between the two companies, legacy systems, and legal complexities are likely to remain significant obstacles.

The two companies have not commented on the report.

NamNews Implications:

•  A 50/50 split does not always make for easy decision-making
• ...but it is unlikely that an unbalanced split would suit either side
• Also the Asda/Walmart IT system-decoupling issues might be kept in mind..
• That said, the resulting scale from a join-up of this size would be of benefit to Aldi on global and local level..
• Watch this space..

Aldi Moves Ahead Of Asda

On the same day that Asda suggested that it was on the road to recovery, new figures show it has been overtaken by Aldi in market share terms across certain categories.

According to Kantar data published by trade magazine The Grocer, Aldi’s grocery market share was 9.8% over the four weeks to 18 May, compared with Asda’s 9.4%.

The figures include the food & drink, household, and healthy & beauty categories and are different from the widely covered numbers that the research group makes publicly available each month. They relate to all expenditure through store tills, with latest figures putting Asda ahead on 12.1% compared to Aldi’s 11.1%

The data seen by The Grocer is usually only shared by Kantar with the supermarkets. Over the longer 12 week period to 18 May, Aldi and Asda were neck-and-neck on 9.8%. Aldi’s grocery sales rose 8.2% year-on-year during the period, while Asda’s fell 6.7%.

Looking at just food and drink (excl. alcohol, household, toiletries and healthcare), Aldi is significantly ahead of Asda, with a share of 10.8% over the 12 weeks versus 10%.

Speaking to The Grocer, Giles Hurley, CEO of Aldi UK & Ireland, said: “In the latest data we have taken third spot. That’s not an objective for us. We don’t benchmark on placement in the market. But it’s an interesting output of our growth and it’s exciting. Seven in every 10 households shop with us.”

An Asda spokesperson commented: “The data upon which these claims are based is highly selective and does not capture Asda’s strong performance across George, Asda Express and Fuel, which remain a key point of difference to the limited-range discounters.”

NamNews Implications:

• By whatever cut, the impact is perceptible to both Aldi and Asda.
•  i.e. affects morale…
• …that eventually seeps into the aisle.
• Watch this space…

Head Of Aldi UK Dismisses Talk Of Supermarket Price War

Giles Hurley, CEO of Aldi UK & Ireland, has said he does not believe the supermarket sector is in the midst of a price war despite suggestions to the contrary, whilst warning rivals his business still had “huge potential” for growth.

Back in March, Asda raised fears of a price war after saying it was willing to take a hit to profits to finance a campaign of price cuts aimed at reversing a slide in market share.

The warning hit the share prices of Tesco and Sainsbury’s, with both supermarkets accounting for Asda’s statement in their annual profit outlooks.

However, speaking to Reuters on Thursday, Hurley said that there had been “more talk than substance”.

He added: “There has been a lot of talk about a price war, I don’t think that has manifested itself,” pointing to industry data showing grocery inflation hitting 4.1% in May, a 15-month high.

“I’d probably call it more of a phoney price war than a real price war,” Hurley said, maintaining that Aldi’s price gap to rivals “is as big as it’s ever been”.

Data from Kantar published on Wednesday showed Aldi UK’s sales rose 6.7% over the 12 weeks to 18 May, its fastest growth since the start of 2024, with its market share hitting a record 11.1%, up 30 basis points year-on-year.

“While I’m delighted with the growth that we have, there’s massive headroom for us,” said Hurley.

He noted that the group, which currently trades from around 1,050 stores, will invest £650m this year in opening 40 stores and refreshing existing ones. A further 40 openings are planned for 2026 as part of its long-term target to reach 1,500 stores in the UK.

NamNews Implications:

• What matters to the consumer-in-the-street: “Is it cheaper elsewhere?”
• A consumer who is increasingly prepared to shop around for value.
• Call it what you will…
• …but keener prices attract (and retain) shoppers.
• With depth of retailer pockets a key driver…
• …and suppliers needing to assess which retailers are best placed to reduce shelf prices.
• At whose expense…?

Strong Period For Discounters Amid Rising Grocery Price Inflation; Signs Of Improvement At Asda

Latest figures from Kantar show take-home grocery sales grew by 4.4% over the four weeks to 18th May, with more shoppers heading to the discounters and buying own label goods as inflation in the sector reached its highest level since February 2024.

Grocery price inflation now stands at 4.1%, compared to 3.8% the previous month, amid rising cost pressures for retailers and manufacturers linked to increased Employer National Insurance contributions and National Living Wage.

“This latest jump in grocery price inflation takes us into new territory for 2025,” said Fraser McKevitt, head of retail and consumer insight at Kantar.

“Households have been adapting their buying habits to manage budgets for some time, but we typically see changes in behaviour once inflation tips beyond the 3% to 4% point, as people notice the impact on their wallets more. Own label lines are ones to watch, with premium own label, in particular, being the fastest growing part of the market since September 2023.”

Squeezed consumers are also continuing to seek out promotions, with McKevitt commenting: “The growth of spending on deals has carried on this month, increasing by 5.1% versus May last year. Trimming prices remains the most popular way for retailers to draw in customers, with 80% of promotional spending this period down to straightforward price cuts.”

Looking at the performance of individual retailers, Ocado marked a full year as the UK’s fastest-growing grocer, with its sales climbing 14.9% over the 12 weeks to 18 May.

It was also a good period for the discounters, which achieved their strongest combined growth since January 2024 at 8.4%. Lidl reached a new share high of 8.1% after seeing its sales grow 10.9%. Compared with the same period last year, it attracted 419,000 extra shoppers through its doors – the most of any retailer. Aldi’s hold of the market reached a record high at 11.1%, with sales up by 6.7% – its fastest growth rate since the start of last year.

Tesco’s sales rose by 5.9%, driving its market share up 0.4 percentage points to 28.0%. Sales at Sainsbury’s accelerated by 4.7%, giving it a 15.1% share. Sales at Morrisons nudged up 1.1%, but its share slipped to 8.4%.

Meanwhile, Asda saw its best performance since May 2024 as it continued with its Rollback campaign. Its sales still slipped 3.2%, but this was an improvement on the 5%-plus declines recorded over much of the last year.

Despite grappling with a major cyber attack on its systems, spending on groceries at M&S rose by 12.3%.

NamNews Implications:

• The discounter opportunity leaps out (or should!).
• i.e. See yesterday’s Lidl-Schwarz piece in NamNews
• NB. In 2023, Aldi achieved a global turnover of €112bn and Schwarz (owner of Lidl) saw its sales hit €175bn last year…
• …compared to Tesco’s global sales of €78bn.
• i.e. The discounters have the option of subsidising share growth at local level…
• Meanwhile, with inflation at 4.1% (and consumer-in-street perception of ‘real’ ‘pound-in-pocket’ inflation even greater)…
• …there are short-term moves into own label and discounters for value by cash-strapped consumers….
• …where they find the compromises they were led to expect by brands and mults advertising was not as great in practice…
• …may become set in place and increasingly expensive to reverse.
• Especially as packaging taxes have yet to emerge and impact inflation levels, inevitably…