Explore the latest developments in UK grocery, including Bestway leadership changes, Lidl's Wellness Wednesday and Waitrose expansion plans.
At a Glance
In this instalment, our UK analysts offer their take on some of the market’s latest developments and initiatives. Here’s what you need to know about:
Bestway boosts senior team with new appointments.
Lidl introduces ‘Wellness Wednesday’ as UK diets ‘reach tipping point’.
Southern Co-op becomes part of Co-op Group.
Waitrose announces plans for mid-size stores to challenge M&S.
Tesco acquires three Proudfoot stores around Scarborough.
Bestway boosts senior team with new appointments
Leading independent wholesaler Bestway has made a number of changes to its management structure as it seeks to drive momentum in a difficult market. Dawood Pervez has been promoted to chairman of Bestway Group’s wholesale business while Naser Khan is to backfill the position of managing director, moving up from his previous position of chief operating officer. Meanwhile Dan Lewis has been appointed sales director, with responsibility for leading Bestway Wholesale’s national sales operation, Zahir Fazaldin has been promoted to property & logistics director and Adina Bejenaru has been recognised as IT director, continuing to lead Bestway’s technology strategy building its digital infrastructure. Together, these appointments complement the existing executive leadership team, including Kenton Burchell (trading director), Charles Abraham (foodservice director) Jamie Davison (retail director) and Ashar Rehman (operations director).
Insight Partner, Patrick Mitchell-Fox’s view:
As well as seeking to boost its position in its core retail customer channel with the recent acquisition of Dee Bee Wholesale, Bestway has also been looking to extend its reach and capability in the foodservice channel following the purchase of Adams Food Service in 2024. Building on the new customer groups and depot coverage brought by these new subsidiaries Bestway has an almost unrivalled cash & carry presence across the major urban centres of Great Britain giving access to their extensive independent catering and retail sectors.
Lidl introduces 'Wellness Wednesday' as UK diets 'reach tipping point'
Lidl claims the UK reached its 2026 Planetary Health Diet Overshoot Day on 25 July, meaning the nation has already exceeded the recommended annual balance of healthy and sustainable foods, with diets containing too much fat, sugar and animal protein while falling well short on fruit, vegetables, wholegrains and plant-based proteins. The discounter says affordability remains a key barrier to healthier eating, with almost half of shoppers citing cost concerns, and is using the findings to reinforce its commitment to the Planetary Health Diet through targets to increase sales of plant-based and wholegrain products. As part of this push, Lidl is launching Wellness Wednesday, offering Lidl Plus shoppers 10% off one Live Well product every Wednesday from 29 July to 26 August, aiming to make healthier and more sustainable choices more accessible and affordable.
Insight Partner, Dan Butler’s view:
Lidl continues to directly tackle one of the biggest barriers to healthier eating, affordability, by rewarding shoppers with discounts on healthier products and making better choices easier to access. As retailers face growing pressure to support healthier and more sustainable diets, Lidl's actions should encourage the wider grocery market to step up its efforts, using pricing, promotions and clearer signposting to help shoppers make healthier choices without increasing their grocery spend.
Southern Co-op becomes part of Co-op Group
The merger of Southern Co-op with the national Co-op Group has taken a significant step with Southern now becoming a wholly owned subsidiary of Co-op. As such it will remain a standalone operation for the time being, pending the findings of an ongoing Competition & Markets Authority (CMA) enquiry. This will determine any conditions to be satisfied before the integration of the two businesses can begin. The CMA decision is expected to be delivered in late 2026. As things stand (i.e. before any mandatory disposals that may be required) the merger would bring 173 additional Southern grocery stores to the existing Co-op portfolio of 2,300 along with 77 franchise stores trading under the Welcome fascia.
Insight Partner, Patrick Mitchell-Fox’s view:
The enactment of this acquisition indicates that the merger of Southern with Co-op Group will go ahead irrespective of the conditions to be applied by the CMA. However, given the regional focus of Southern’s reach it would seem unlikely that extensive store disposals would be required. But equally, given that Southern’s business was increasingly regarded as financially unsustainable due to ongoing trading losses, it seems likely that even if the CMA imposes no conditions that under-performing Southern stores will be closed in the future.
Waitrose announces plans for opening mid-size stores to challenge M&S
Waitrose has announced plans to open dozens of 'neighbourhood' stores at sizes between their Little Waitrose convenience stores and their full-sized supermarkets. This is in direct competition with M&S Food stores' rapid expansion and renewal across the UK. The stores are targeted at 7,000 sq ft with a focus on fresh food and larger bakeries. The new formats come as part of the retailers £1bn multi-year investment covering expansion, renewals and upgrades across the store estate. Similarly to M&S' strategy for expansion, Waitrose is trying to shift its premium price point reputation to appeal to less affluent shoppers, with rounds of price cuts being rolled out since 2023 totalling £162.5m.
Analyst, Seth Russell's view:
The expansion plans are a natural step for Waitrose, since it began by opening its first store in six years in 2024 the retailer has been looking to expand further across the UK and to expand its focus on the convenience channel. M&S has seen significant positive outcomes from its own expansion and strategic shift towards a different demographic of shoppers, recording a year-on-year grocery-only sales growth of 16% in July 2026. Its new and renewed store format has drawn lots of interest and attention. As M&S' main competition, Waitrose needs to remain competitive in the market to avoid being overshadowed, and the use of 'neighbourhood' mid-sized store formats could be the answer, as they are small enough to deploy at scale, but large enough to offer a solid on-shelf range and feature the retailer's signature counters.
Tesco acquires three Proudfoot stores around Scarborough
Long-term pillar of the independent retail sector in North Yorkshire, Proudfoot Supermarkets has divested three of its four stores to Tesco. The transaction leaves the family-owned business with one remaining supermarket in the village of Eastfield on the outskirts of the seaside town of Scarborough. The three stores purchased include Proudfoot’s flagship (15,000 sq ft) store at Newby in the west of the town, which will be converted to Tesco’s superstore format in early 2027, plus two convenience stores (at Seamer and Manham Hill) which will re-open in Tesco’s Express format in Autumn 2026.
Insight Partner, Patrick Mitchell-Fox’s view:
The decision to sell these stores comes little more than a year after the completion of a significant refurbishment of the largest unit at Newby, suggesting that the investment there has not paid the dividends Proudfoot hoped for. The most recent Companies House accounts for the Proudfoot business (for the year to March 2025) recorded declining sales and profit, attributed to the disruption and investment involved in the redevelopment. Proudfoot is one of the longest standing members of the original Nisa (Northern Independent Supermarkets Association) supply consortium, which now trades as Co-op Wholesale.
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