UK roundup: Asda decline, range expansions, price cuts and store strategy

Asda declines in Q1, Boots appeal to GLP-1 users, Aldi cut prices, open a new DC and announce refurbs, M&S expand frozen and announce a new store, Iceland cut prices due to its recorded high inflation.

• Asda’s first quarter sales decline 1.5% despite improved like-for-like performance

• Boots launch GLP-1 friendly meal range

• Aldi continues to cut prices, opens new DC and announces refurbishments

• M&S is doubling its frozen range and opening a larger store on Tottenham Court Road

• Iceland launches price cuts after having the second highest grocery inflation in the UK

Asda’s first quarter sales decline 1.5% despite improved like-for-like performance

Asda’s first quarter results, for the period ending 31 March 2026, reveal total revenue (exc. fuel) reached £5.0 billion, a year-on-year decline of 1.5%. Like-for-like sales declined 0.8%, an improvement from the 4.2% decline recorded by the retailer in the fourth quarter of 2025. The results announcement cited an eight-year high for availability at over 95%, and Asda Express outperforming the wider convenience market for seven consecutive quarters as notable highlights. As part of the results announcement, Asda revealed it is partnering with Ocado Group to boost its online grocery service. Beginning in 2027, Ocado’s Smart Platform technology will be installed across Asda’s website, mobile app, in-store picking and home delivery service.

Senior Insight Analyst, Alex Rowberry’s view: despite an improvement in like-for-like sales, Asda’s declining total revenue against a 5.9% decline in the first quarter of 2025 has resulted in its market share falling to 11.5% in the latest Worldpanel by Numerator figures. While the partnership with Ocado Group is an acknowledgment of problems with its online operation, Asda is unlikely to see the benefits of this until the second quarter results in 2027.

Boots launch GLP-1 friendly meal range

The new Boost by Boots range includes 15 products designed to be a nutritionally balanced lunchtime option, and are included in the retailer’s meal deal. The launch comes after Boots’ internal research showed that GLP-1 users struggle to find healthy options on the go. The new products complement the existing range of healthy lunchtime options which Boots has been growing in recent years.

Senior Insight Analyst, Michela Pearson’s view: With GLP-1 users rising in the UK, multiple retailers are expanding their food ranges to include nutritionally dense products. Boots’ range includes products inspired by Korean cuisine, tapping into the growing trend of world foods and highlighting how it is position itself as a destination for health.

Aldi continues to cut prices, opens new DC and announces refurbishments

The discounter has just announced an investment of £60m to reduce the price of 200 staples for the summer. This is in addition to the £200 already invested so far this year to keep prices down as shoppers continue to seek value. In other Aldi news this week, the new distribution centre in Bardon, which features high level of automation and will help it service multiple additional stores, is fully operational. The discounter has also revealed the location of 25 stores being refurbished over the summer.

Senior Insight Analyst, Michela Pearson’s view: Aldi continues to push strongly on value, as it has been losing share slightly in the market. The price cuts, in addition to the new stores which the Bardon distribution centre will help service, will help to drive footfall. Planned store refurbishments will also bring a refresh to locations around the country, focusing on the shopper journey and key categories for upgrade.

M&S is doubling its frozen range and opening a larger store on Tottenham Court Road

M&S is launching 47 new and improved own label frozen products in a bid to attract more family shoppers. There are 34 new and 12 upgraded ice creams and ice lollies, including ‘clean ingredient’ lollies aimed at kids, and ‘Only ... Ingredients’ ice creams. M&S see frozen to continue its food sales growth, after becoming the fastest growing brick-and-mortar retailer in the UK according to Worldpanel’s latest results. The frozen refresh is not only on ice creams and lollies but will be followed by other frozen categories. To accommodate this expansion, M&S aim to increase freezer space in stores by 25%. The retailer has also revealed that it will be opening a larger store in Tottenham Court Road, relocating the store already there to a location 45% larger and closer to the train station than the one already there. This is part of the continued plan to double the size of its food business, marking a major move to modernise its estate across the country and take space in a densely populated area. The retailer will be implementing some of the features of its new formats in this store such as a dedicated bakery and coffee counter, as well as a sushi counter.

Analyst, Seth Russell’s view: M&S are continuing to show strong signs of growth in its plans to double its food business and appeal to more family shoppers across the UK. Latest Worldpanel results show how well this is working as it has become the fastest growing brick and mortar retailer and the second fastest growing UK retailer behind Ocado which the group co-owns. Frozen is a category built for families who need food to last, therefore expanding the range to include bigger pack sizes draws family shoppers in and makes M&S more appealing, rather than seeming too premium. The expanded range also comes at the perfect time for summer, as the retailer typically drives footfall for its ‘picky bits’ and now boasts a solid frozen sweet treat range. The new store provides M&S the space to offer its full food range to a wider base of shoppers in such a population dense area. The expansion across the UK is not slowing down and the food business is showing stronger growth because of this.

Iceland launches price cuts after having the second highest grocery inflation in the UK

This week Iceland has implemented price cuts on more than 200 frozen products. This comes after it was revealed Iceland had the second highest rate of grocery inflation in the UK (5.8% compared to the official UK rate of 3%). This is a marker of how grocery inflation is expected to continue as the Middle East conflict impacts supply chains further down towards supermarkets. The executive chairman of Iceland has come under fire after this news due to his position in the labour party being specifically to help tackle rising household bills, and has been very vocal in his stance that retailers are raising prices too quickly for households to keep up.

Analyst, Seth Russell’s view: The elevated pricing at Iceland may be an early indicator of broader cost pressures, specifically the impact of the Middle East conflict feeding into UK grocery shelves. The decision to introduce price reductions shortly after the news of its inflation numbers implies that, regardless of how the data is interpreted, there was recognition that prices needed to be addressed. Comments from the executive chairman Lord Walker regarding wider industry price increases sit alongside evidence that Iceland itself has been among the faster movers on pricing in the UK. Rather than this suggesting an inconsistent narrative, this could point to a wider challenge across the sector where retailers are balancing the need to maintain margins with the pressures of rising costs.

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