UK round-up: results and store closure news

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:

• Morrisons reports like-for-like growth in third quarter trading results

• Holland & Barrett to open concessions in Morrisons supermarkets

• Amazon Fresh to close all 19 of its UK stores

• Asda launches fixed-price meal deal

• Lidl’s first international brand campaign

• Aldi introduces clothing donation scheme

Morrisons reports like-for-like growth in third quarter trading results

Morrisons reported like-for-like sales increased 3.0% in its third quarter trading results, covering the 13 weeks to 27 July 2025. Total sales were in 3.5% growth, reaching £4.0 bn for the quarter. Morrisons said its online channel was the fastest growing in the market, reporting double digit like-for-like growth. The retailer also announced £63m in cost savings in the quarter as it expects to achieve £1 bn in savings by the end of its 2026 financial year. Updating on its gross debt, Morrisons announced it had repaid a further £261m and extended maturities to 2031.

IGD Senior Insight Analyst, Alex Rowbery‘s view:

Although the latest results from Morrisons have the retailer growing behind the market, they nonetheless mean the retailer is in a good position as it starts to implement its new strategic vision, ‘Morrisons Magic’. No doubt, the retailer will expect sales to increase as it rolls out changes to store formats, implements price cuts and unveils a new premium private label range.

Holland & Barrett to open concessions in Morrisons supermarkets

Morrisons is to partner with Holland & Barrett, hosting concessions from the health and wellness retailer in its supermarkets. As reported by The Grocer, the first concession has opened in Morrisons Cheadle Heath store in Stockport. Further concessions are set to open in Norwich and Bradford. If successful, further concessions will roll out across Morrisons supermarket estate.

IGD Senior Insight Analyst, Alex Rowbery‘s view:

The launch of these concessions builds on Morrisons strategy to provide shoppers with ‘more reasons to shop at Morrisons’, complementing the launch of Morrisons online pharmacy, Morrisons Clinic, in January. For Holland & Barrett, the move forms part of its strategy to open concessions in locations from garden centres to airports. It already operates around 60 concessions in Tesco supermarkets and began rolling out bays in Co-op stores last month.

Amazon Fresh to close all 19 of its UK stores

Amazon has announced it is set to close all 19 of its Fresh stores around the UK, with five converted into Whole Foods stores. The first Amazon Fresh store opened in March 2021, and at one point in 2024, the portfolio consisted of 21 stores. In the US, Amazon has also been closing a number of Go stores (the UK’s convenience equivalent), while focusing on expanding its Fresh supermarkets.

IGD Insight Manager, Michaela Jay‘s view:

The closures reflect Amazon’s challenge of finding its place in the grocery sector; it’s no secret that Amazon has struggled with its brick-and-mortar grocery strategy, and the retailer has been open about finding the right model for its stores, having moved away from Just Walk Out to fully hybrid operations. The news that five stores will be converted into Whole Foods Markets indicates we could expect to see a revived strategy to ensure success with this format; it follows the appointment of Jason Buechel, CEO of Whole Foods Market, as the new VP of Amazon’s global grocery stores.

Asda launches fixed-price meal deal

Asda has launched its first ever fixed price meal deal, replacing its previous 3 for 2 offer. The meal deal is available to all shoppers, with membership of Asda’s loyalty scheme, Asda Rewards, not required to access the £3.74 price. Asda claims this makes its meal deal the lowest priced non-membership meal deal in the market.

IGD Senior Insight Analyst, Alex Rowbery‘s view:

Asda’s new meal deal builds on the principles of ‘Rollback to Asda Price’, as it is the cheapest fixed-price offer in the market. The launch sets Asda apart from competitors Tesco and Sainsbury’s, where the price of meal deals have increased. It also builds on comments by Asda Chairman, Allan Leighton, who has spoken of rewarding everyone who shops at Asda, not just members of its loyalty scheme. Read more about this topic in IGD’s future of autonomous stores report.

Lidl’s first international brand campaign

The discounter has launched a new campaign across its 31 markets under the slogan “Lidl. More to value”. The campaign highlights its commitment that everyone should have the right to access high-quality, sustainable products that they can afford.

IGD Senior Insight Analyst, Dan Butler’s view:

As IGD demonstrated through the value equation, value is much more than just price and Lidl’s new campaign shows shoppers why they are a brand to trust. It aims to build emotional connections with shoppers, which is underpinned by its commitment to conscious nutrition, sustainable development, employee welfare and social projects.

Aldi introduces clothing donation scheme

Shoppers at Aldi, can now donate pre-loved clothing via In-Post lockers at over 500 stores. The clothes will be donated to The Salvation Army, with whom Aldi has an existing partnership for the sale of non-food SpecialBuys.

IGD Insight Analyst, Michela Pearson’s view:

Aldi is continuously looking for ways to bring more footfall into stores, and this is a brilliant initiative. Many larger stores will have donation bins in their carparks, and adding this service will undoubtedly attract shoppers. It also builds on the discounter’s commitment to helping shoppers be more sustainable, and the importance of partnerships to improve services.