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…