Sainsbury’s Testing New Checkout-Free Tech

Sainsbury’s is trialling a new checkout-free system that lets customers pay for their shopping on its SmartShop handsets as part of moves to “reduce friction”.

According to trade publication The Grocer, the supermarket is testing the new payment-enabled devices in its stores in Richmond and Kempston. At the end of their shop, customers tap their card on the SmartShop handset to pay. They can print their receipt at a physical bay or ask for it to be emailed to them.

The SmartShop app, which can be downloaded onto phones, has had a payment function since 2022. However, Sainsbury’s director of future stores and customer experience, Darren Sinclair, told The Grocer that consumer research had found many shoppers preferred to use a physical handset to save their phone battery.

“It’s a bit more ergonomic,” he said. “I think about this as trying to reduce friction, improve payment and simplify the shopping journey, as well as the future potential space.”

Sinclair noted that there are advantages for Sainsbury’s to encourage more shoppers to use the SmartShop facility.

He said: “From a heatmapping perspective, we can see how people shop. We don’t see the physical customer, just see the heat, so we can see which ends are looked at, which screens are looked at and the flow around the store.

“That’s massively insightful when we are working out store formats, or when we are doing Nectar screens for suppliers.”

NamNews Implications:

• An extra little help for customers…
• …a major help for Sainsbury’s.
• And extra insights for suppliers…
• …all in terms of making every trip count.

Aldi Seeking Public Input To Find Sites For New Stores

Aldi is calling on the public to help identify the best locations for new stores in the UK.

Customers can submit suggestions for where the discounter should open new outlets, with the most popular areas being considered as part of Aldi’s expansion strategy.

The supermarket currently has more than 1,050 stores and has committed to a long-term goal of operating more than 1,500 sites across the UK.

In the coming months, Aldi will be bringing new stores to areas such as Ashford in Kent, Eastbourne in Sussex, and Caterham in Surrey, as part of its focus on expanding in the South East.

“We’ve always believed that great quality food should be within everyone’s reach and many communities would therefore still benefit from having an Aldi nearby,” said Jonathan Neale, Managing Director of National Real Estate at Aldi UK.

“We’re always looking at key places where we see potential, but we also want to hear directly from the public about where the demand is greatest. Their input is invaluable as we continue to grow and bring Aldi’s unbeatable value to more areas across Britain.”

The supermarket ran a similar initiative last year, which saw locations in London, Manchester, and Derbyshire recognised as priority locations amongst shoppers.

Progress has already been made to bring a new Aldi store to Chesterfield in Derbyshire, with the company recently securing planning for a site on Ringwood Road, Brimington.

To nominate a town or area for consideration, people have to email NextNewStore@aldi.co.uk and state the town they would like to put forward in the subject of the email.

Aldi is asking for submissions by 8th June, with plans to share the results and unveil the next round of priority locations later this year.

NamNews Implications:

• Aldi will obviously use scientific bases for site selection…
• …But public support will patently help in securing planning approvals.
• Besides, one never knows, local support may uncover potential sites missed by the science…
• Either way, Aldi appears to be determined to achieve their long-term goal of operating more than 1,500 sites across the UK.
• Watch this space…

Sainsbury’s Completes First Conversion Of Sites Acquired Last Year As Part Of Accelerated Store Opening Programme

Sainsbury’s has launched the first of 14 retail sites that it recently acquired for conversion into supermarkets, kick-starting its biggest store opening programme in over a decade.

The new supermarket opened in Felixstowe yesterday and is part of Sainsbury’s ‘Next Level’ strategy to offer “more food choice to more customers in more locations” across England, Scotland, and Northern Ireland.

Last autumn, the company snapped up 14 sites, which were predominantly former Homebase stores, and two outlets from East of England Co-op. Since then, Sainsbury’s has been working to convert them into new supermarkets, with the first in Felixstowe to be followed by a second in Brightlingsea later this year.

Combined with its organic store opening programme, the group expects to open 15 supermarkets during its 2025/26 financial period, and over the next two years, new openings will add over 400,000 sq. ft. of new space to its estate. It also plans to add another 25 new convenience stores in each of the next two years.

The new 19,000 sq. ft. supermarket in Felixstowe is Sainsbury’s first in the East Suffolk town and represents a multimillion-pound investment by the retailer. Its arrival means almost 23,000 more people in the area now live within a 10-minute drive of a Sainsbury’s supermarket.

“We were delighted to open our fantastic supermarket in Felixstowe today, putting Sainsbury’s on the doorstep of customers in the town for the first time,” said Patrick Dunne, Sainsbury’s Chief Property and Procurement Officer.

“It was also an exciting moment for our business as today’s launch marks the first of many brilliant new supermarkets we plan to open over the next two years, following our strategic decision to acquire 14 new sites for conversion into Sainsbury’s last year. Our bold plan is driven by our belief in the strength of Sainsbury’s offer and our commitment to bringing more of our delicious, high-quality and great value food within easy reach of more customers.

“We’ve worked diligently to transform the Felixstowe site into a new Sainsbury’s store in just a few months, and we will continue to convert many more of the sites we’ve acquired for launch over the next two years, as well as opening more new stores from our existing pipeline of purpose-built supermarkets.”

NamNews Implications:

• And being retail, initial results will have begun to flow.
• Pointing to a direction forward.
• Retail rivals now need to factor in 14 new compete-points with Sainsbury’s…
• …and appropriate action required from suppliers.

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Couche-Tard Advances Takeover Talks With Owner Of 7-Eleven

Alimentation Couche-Tard has made a significant advance regarding Seven & i, owner of the 7-Eleven convenience store brand, following long-awaited access to critical financial data.

Couche-Tard, owner of Circle K, has entered into a non-disclosure agreement (NDA) with Seven & i to “progress transaction discussions, facilitate due diligence, and collaborate on plans to engage with regulators”.

Couche-Tard has publicly asked for this access since its unsolicited bid last year, saying enhanced visibility into Seven & i’s financials could justify an increased offer, approaching $50bn.

Privately, both parties have attributed delays in progress to the other’s lack of cooperation.

Seven & i confirmed today that the NDA includes a “standstill” clause, a standard provision in mergers and acquisitions that prevents a hostile bid while confidential data is being exchanged.

“We appreciate the special committee of Seven & i engaging in substantive discussions regarding our proposal and providing access to diligence,” said Alex Miller, Couche-Tard’s CEO. “We look forward to working collaboratively with Seven & i in the interests of all stakeholders.”

In late 2024, preliminary and limited discussions via respective advisors started and they signed NDAs (allows a search for potential buyers of US stores likely to be divested to address regulatory concerns if a deal went ahead).

Seven & i shares were up 3.5% in Tokyo today, but well below the offer price (investor scepticism).

Seven & i are “pursuing two parallel paths” to maximise value for shareholders and stakeholders, also also striving to enhance its standalone valuation by divesting non-core assets, planning a partial listing of its North American operations, and executing a share repurchase programme exceeding $13bn.

They recently appointed Stephen Dacus as Chief Executive Officer, who was previously the chair of their special committee evaluating Couche-Tard’s proposal.

In Tokyo last week, Dacus affirmed their focus on increasing US investments, strengthening supply chains, and expanding its fresh food offerings, but the ongoing acquisition talks could be a potential distraction.

“At some point, you’ve got to make a decision, one way or another,” he said. “There’s still a lot of hurdles to clear … I suspect it’s going to take a while still, because there’s still some really serious things that need to be worked out.”

NamNews Implications:

• In agreeing to an exchange of confidential financial information…
• …it could be said that both parties are taking the possibility of a takeover seriously.
• (Albeit within the protection of a ‘standstill’ position and NDA agreement)
• Therefore, if the price is right, all will proceed…
• Meanwhile, suppliers and retail rivals will benefit by treating this as a done deal…
• …and exploring options and acting accordingly.
• (unless they prefer to risk awaiting the inevitable…)

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Morrisons Testing Shelf-Scanning Robots

Morrisons is trialling robots that can check for out-of-stock items, pricing errors, and misplaced products.

According to trade magazine The Grocer, the supermarket is testing the ‘Tally’ robots from US tech company Simbe at three stores. They are claimed to be the world’s first autonomous inventory bot, which uses advanced AI and computer vision technology to collect comprehensive product data by roaming the aisles in stores.

The robots are being tested in Morrisons stores in Wetherby, Redcar and Stockton. Katherine Allanach, technology manager at the retailer, told The Grocer that they are being used to “check that the products on the shelves are being displayed correctly and are legally compliant.”

She added: “It is a crucial but time-consuming task, and so Tally aims to allow more time for colleagues to focus on customer service.”

The report stated that Morrisons is the first UK retailer to invest in Simbe’s Tally robot, which can capture 15,000 to 30,000 products an hour. It self-docks to a charging port when needed.

Morrisons noted that feedback from customers and staff had been positive, with a spokesperson saying: “They have been intrigued and curious but very positive and colleagues in particular can see how supportive Tally could be.”
The robots are currently being used by retailers around the world, including Carrefour, Albertsons, ShopRite and Kroger.

A spokesperson for Simbe told The Grocer that Morrisons’ adoption of Tally was a major step in its drive to expand its global footprint, but also “validation that retailers around the world are increasingly turning to autonomous solutions to gain unprecedented visibility and address key operational challenges.”

NamNews Implications:

• This says it all:
• “Tally aims to allow more time for colleagues to focus on customer service”
• Which has to have a payoff in repeat shopper visits…
• …where items required are found on-shelf.
• Simple but difficult...
• A no-brainer…

Spending On Promotions In Supermarkets Hits Highest Level This Year

Latest Kantar: Take-home UK grocers sales up 6.5% (4 weeks to 20 April) - Easter later + uptick in promotions.

Sales rise because of 3.8% grocery price inflation vs recent low of 1.4%, Oct 2024.

Easter eggs spending up 11% vs 2024. Fraser McKevitt, head of retail and consumer insight at Kantar: “Chocolate confectionery prices rose by 17.4% this period, the fastest of any category, but that didn’t stop the British public treating themselves this Easter. The volume of chocolate eggs sold through supermarket tills still grew by 0.4% on last year, while at the dinner table, lamb was the most popular fresh meat joint, followed by beef and pork.”

Spending on promotion reached 29.7%, its highest level this year.

“The grocers have been sharpening their pricing strategies to stay competitive in the fight for footfall."

Price cuts were the main driver of promotional growth. Often linked to loyalty cards, spending on these deals up £347m. (Tesco and Sainsbury’s nearly 20% of items sold on price match, in 2/3 of baskets.)

“However, not just re price perceptions. Shoppers want quality too, particularly on special occasions, and we can track that, for example, in the rapid growth of premium own label in the latest four weeks at 23.2%.

"Retailers need to be seen to be offering great value, but it’s a fine tightrope to walk, particularly as they manage their own business costs.”

Lidl had fastest rise in footfall (12 weeks to 20 April) shoppers visits average of 8.8 times resulting in sales up 10.1%, to a 8.0% market share.

Aldi’s above-the-market sales growth of 5.9%, an 11.0% share.

Ocado was the fastest-growing retailer – held continuously for nearly a year – after its sales grew by 11.8%.

Spending on groceries at M&S grew by 14.4%.

Tesco’s sales increased by 6.0%, lifting its market share to 27.8%, while sales at Sainsbury’s rose by 4.4%.

Meanwhile, early signs that Asda’s price rollback campaign might be having an impact on its performance. Its sales still fell by 3.8%, but this is an improvement on the declines of over 5% reported in recent months.

NamNews Implications:

• Key standout has to be that Asda is the only retailer showing a fall in 12-week YOY sales…
• …indicating the scale of the challenge facing the retailer.
• A key problem is the quality of rivals by comparison…
• …along with the discounters now powering ahead amidst continuing market uncertainty.
• And a return to higher inflation, certain for further increases when additional taxes are fully reflected in the stats.
• The heavy investment in price cuts by rivals will add further pressure on Asda.
• Meanwhile, the rapid growth in premium own label poses a continuing challenge for the size of brand premia.
• Meaning consumers are less willing to accept ‘excess’ prices for brands vs their own label equivalents…

Lidl GB To Spend £500m Opening New Stores Over The Next Year

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Lidl GB has revealed that it will invest half a billion pounds in its expansion during its current financial year, with plans to open more than 40 new stores.

The announcement came as the discounter published its 2025 site requirements brochure, outlining hundreds of potential locations for new stores, including high streets, retail parks, and mixed-use town centre sites.

The updated list features locations across England, Scotland and Wales. It includes 200 places in London where it is seeking sites, including Mayfair, Chelsea, Kensington, Notting Hill, Angel, Soho and Covent Garden, as well as more suburban areas such as Finchley, Colindale and Uxbridge.

“This level of investment is a clear sign of our ambition. As we enter our fourth decade in Great Britain and hurtle towards a thousand stores, there are still so many parts of the country crying out for convenient access to a Lidl store,” said Richard Taylor, chief real estate officer at Lidl GB.

“That’s why we welcome the measures proposed in the Government’s Planning and Infrastructure Bill – they recognise the urgent need to remove barriers to development and support the kind of growth we at Lidl are working towards.”

He added: “Our latest site requirements brochure reinforces the scale of our ambition for the future. New Lidl stores mean new jobs, new opportunities for British suppliers, and continued investment into local economies. We’re proud to be one of the fastest-growing supermarkets in the country, and with this investment, we’re taking another big step in our journey.”

This year, Lidl will also complete the expansion of its Belvedere Regional Distribution Centre, which has more than doubled in size. The discounter is also set to start construction on a new distribution centre in Leeds later in the year to support its growth plans.

NamNews Implications:

• There you have it from Lidl: 40 new stores in most-needed locations.
• And little reason for Lidl to compromise on plans given £500m set aside.
• Time for rivals and suppliers to reassess their discounter/Lidl strategies?

Chinese Retail Giant Launches Online Supermarket JoyBuy In The UK

China’s largest retailer by revenue, JD.com, has begun testing a new e-commerce grocery site in the UK called Joybuy.

Initially taking orders from consumers in select London postcodes, the website offers an extensive 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 lines are also available across several categories.

A spokesperson from JD.com told trade publication The Grocer that Joybuy was currently in a testing phase with plans for an official launch and wider rollout to other cities by the end of the year.

The UK Joybuy website says it offers same-day and next-day delivery, with a 30-day free return policy.

The report by The Grocer said the company has been quietly building a highly experienced team of UK grocery buyers and category execs in recent months.

This includes Matthew Nobbs, a former commercial director for rapid grocery player Gorillas, director of trading for Holland & Barrett, and senior buying director for Lidl UK. He was appointed JD.com UK chief merchandise officer in February and recently posted on LinkedIn: “Getting ready to rumble in the UK for one of China’s biggest success stories”.

Meanwhile, Richard Thorn, a former online trading manager at Sainsbury’s and Asda account lead for PepsiCo, was appointed senior category manager for food & beverage in January.

Buyers have also been recruited from Ocado Retail, Amazon and Tesco, with JD.com currently advertising for more than 40 London-based roles, including FMCG, baby, personal care and ambient category managers.

The report noted that, unlike other Chinese e-commerce companies such as Temu and Alibaba, which operate a marketplace model, JD.com functions as a retailer, holding stock in its own warehouses.

The company saw its turnover exceed $157bn last year and has been growing its presence outside of China in recent years. It has already established warehouses across Europe in the Netherlands, Poland, and France.

“JD.com’s operations in Europe are built on the same principles that define our success in China: delivering high-quality products at great prices, backed by fast and reliable delivery,” the company spokesperson told The Grocer.

NamNews Implications:

• JD.com is patently taking the UK market seriously.
• Staffing up.
• Starting in the UK’s biggest conurbation.
• Positioning: ‘delivering high-quality products at great prices, backed by fast and reliable delivery’.
• Categories: an extensive 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 lines available across several categories.
• Need any more details?