UK round up: latest market performance figures and retailer developments

In this instalment, our UK analysts offer their take on the market’s latest performance and some of the new retailer developments. Here's what you need to know about:

• UK grocery retail boosted by weather and World Cup 

• Aldi stops testing loyalty in Scotland 

• Asda switches focus of promotions to multibuys 

• Tesco launches qcomm on Uber Eats and Deliveroo 

• Asda looking to build a more flexible workforce 

• M&S opens two new stores in one week 

• Iceland Foods’ temporary store rebranding garners cease & desist warning from the FA  

UK grocery retail boosted by weather and World Cup 

The latest data released by Worldpanel by Numerator shows that in the 12 weeks to 17 July 2026 sales in the grocery market were up 2.5% but accelerated to 3.3% in the last four weeks of the period as shoppers spent more enjoying the hot summer weather and watching the festival of football in the US.  Ocado retained its position as the fastest growing retailer up 14.1% in the 12 weeks though its share remains modest at 2.2%.  Amongst the ‘bricks & mortar’ players Lidl continued to lead the pack with sales up 8.6%, though the other major discounter, Aldi, saw its progress slowing on just 0.7%.  Strikingly Morrisons was fastest growing amongst the traditional ‘big four’ with sales ahead 3.5%, while Sainsbury’s was more-or-less on the market average on 2.7%.  In contrast Tesco fell behind the average on just 1.7% and Asda continued to decline with sales down 1.1%. 

Insight Partner, Patrick Mitchell-Fox commented: the exceptional weather brought some welcome upside particularly to the convenience players in the sector, with small stores enjoying an increase of seven million trips in the last four-week vs the same period in 2025.  As well as driving impulse purchasing in categories like soft drinks and alcohol hot weather also sees shoppers heading for the seaside where convenience stores are well-placed to benefit from the spend of day-trippers.  Co-op will have gained some of its upside from his effect as it saw sales up 5.6% over the 12 weeks, though this will have been magnified by the ongoing rebound from the cyber-attack disruption in 2025. 

Aldi stops loyalty testing in Scotland 

Aldi UK has halted a trial of new loyalty features within its app in Scotland, just before the programme was due to be expanded, and reports suggest any plans for a wider rollout, including Germany, have now been shelved. The test was designed to be different from traditional supermarket loyalty schemes, focusing on gamification, challenges and rewards rather than personalised discounts or points-based cashback. The decision seems to be part of wider cost-cutting efforts, with the retailer reducing investment in several digital and innovation projects, including trials of autonomous stores. 

Insight Partner, Dan Butler’s view: this could leave Aldi at a disadvantage, where retailers such as Lidl, Tesco and Sainsbury’s are increasingly using loyalty ecosystems to drive shopping frequency, personalise offers and generate valuable first-party customer data. While Aldi’s low-price model remains a strong differentiator, the absence of a loyalty scheme may limit its ability to build deeper shopper relationships and influence shopper behaviour beyond price alone, particularly as competitors continue to invest heavily in digital engagement. 

Asda switches focus of promotions to multibuys 

Asda has reduced its level of price cuts in favour of multibuy promotions. As reported by The Grocer, analysis of Associa data shows the retailer ran 6,845 promotions on 29 June 2026, with 57% being multibuys and 43% being price cuts. This contrasts with 30 June 2025 when 6,977 promotions were run, with 72% being price cuts and only 28% being multibuys. Asda’s current level of multibuys is higher than any other UK full line retailer. The change can be seen as a move to improve Asda’s appeal to family shoppers, a key element of Asda’s shopper base. 

Senior Insight Analyst, Alex Rowberry’s view: The increased use of multibuy promotions suggests Asda’s transition from Rollback to the Asda Price strategy is entering its final stages. This would align with the retailer’s assessment when Rollback launched in January 2025 that the programme would be largely completed by the end of 2026. The shift may also reflect a recognition that low headline prices alone are not sufficient to drive the level of sales growth required to rebuild market share, prompting Asda to place greater emphasis on multibuys to encourage larger basket sizes and strengthen its appeal among family shoppers. 

Tesco launches qcomm on Uber Eats and Deliveroo 

Tesco has announced plans to launch on quick commerce aggregators Uber Eats and Deliveroo. The partnership with Uber Eats will begin in August, with the retailer launching on Deliveroo later this summer. Shoppers using either aggregator will have access to hundreds of Clubcard Prices and will earn Clubcard points. Tesco stated the partnerships would extend its quick commerce reach beyond the 70% of the UK population that already has access to Whoosh. 

Senior Insight Analyst, Alex Rowberry’s view: the news from Tesco will ensure it is visible in a key demographic, with over half of under 24s who make quick commerce purchases starting their shopping journey on one of the UK’s aggregators. It also opens the possibility for Tesco to serve multiple online shopping missions through quick commerce, with Whoosh branching into full-basket same-day delivery while immediate shopping needs are fulfilled via Uber Eats and Deliveroo. 

Asda looking to build a more flexible workforce 

Asda is making changes to the working patterns in its stores to build a more flexible workforce and improve the consistency of its shopping experience. The changes will see store staff increasingly working across multiple areas of stores instead of the current practice of working within a single department. Staff will be expected to work across four main areas: replenishment, store processes, customer service, and online order picking. As part of the changes, store rotas and working patterns will be reviewed to ensure staff levels reflect the changing demands of stores throughout the day. 

Senior Insight Analyst, Alex Rowberry’s view: While Asda has established a price gap to many of its full-line competitors and improved availability to an eight-year high of 95%, its in-store environment remains an area of focus. Through initiatives such as its recent ‘Take a Fresh Look’ campaign, alongside investment in fresh produce and frozen categories, Asda is taking steps to improve the quality and consistency of the shopping experience. Building a more flexible workforce should support these efforts, helping the retailer respond more effectively to changing shopper demand throughout the day while maintaining standards across stores. 

M&S open two new stores in one week  

Last week, M&S opened two new stores, one of which being its largest ever standalone food store in Godalming. The other store opened was in Weymouth Gateway in Dorset. These new stores contribute to reach 380 Food stores by 2027/28. The main goal of M&S' expansion is to double the size of its food business in terms of sales, and the method the retailer is using to reach this target is by appealing to more family shoppers. Within the Godalming store were bays dedicated to M&S' Remarksable Value range, improving visibility of selected SKUs and value perception. Throughout the store was also an innovative use of adjacencies, improving the simplicity of shopper missions for specific categories of products. 

Analyst, Seth Russell‘s view:   M&S' expansion not only provides more selling space for the retailer but also provides opportunity to experiment and innovate within the stores to find the best formula for growing the business. The use of clever adjacencies and clearly mapped out value-led sections makes it become more accepted as a shopping list retailer and more likely to be a destination for a weekly shop. Not only this, but the innovation within these stores draws attention from the local community, making it a destination shop for experience-led retail in a sea of standardised supermarket formats.  

Iceland Foods’ temporary store rebranding garners cease & desist warning from the FA 

Iceland Foods recently rebranded three of its stores from Iceland to ‘England’ ahead of the England national teams semi-final match against Argentina. The rebrands happened in three specific areas representing where national team players are from, one in Washington for Jordan Pickford, one in Chingford for Harry Kane, and one in Stourbridge for Jude Bellingham. The supermarket claims it was contacted by lawyers representing the Football Association demanding the displays be removed due to official partnership reasons. The retailer took down the displays claiming it was due to the loss against Argentina rather than due to the warning from the FA. 

Analyst, Seth Russell‘s view: A bold strategy from Iceland to promote the World Cup and show its support to the national football team. The temporary change was for the stores brought visibility to its support of the national team, and the FA’s response seemed to only play into the retailer’s ambition of gaining visibility more. Both sides of the argument have merit, but it is unlikely that Iceland’s stunt has a strong legal basis.  

What to read next: More than rapid delivery: Tesco's aggregator partnerships  

 

Looking for more insight? 

Subscribers can find out more on our UK market hub.