UK roundup: Christmas trading & latest developments

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

• Online leads growth in Tesco’s third-quarter and Christmas results

• Sainsbury’s Q3 and Christmas propelled by online

• Asda commits to Asda Price beating loyalty pricing

• Lidl starts 2026 with 19 new stores

• Waitrose to open low carbon distribution centre in Bristol

Online leads growth in Tesco’s third-quarter and Christmas results 

Tesco produced another strong set of results in its third-quarter and Christmas trading update, covering the 19 weeks to 3 January 2026. Total group sales increased 4.3%; UK sales grew 4.4%, Republic of Ireland sales increased 11.2%, Central Europe sales increased 9.1%, sales at Booker declined 1.3%. UK online sales grew 11.2%, helped by 100,000 additional Christmas delivery slots. A combination of five new stores, the expansion of Whoosh, and food sales growth of 5.2% contributed to sales growth in the Republic of Ireland. Central Europe sales were driven by like-for-like online sales growth of 14.3%. Booker’s performance was impacted by its core retail sales declining 0.4%.    

Senior Insight Analyst, Alex Rowberry‘s view: Tesco has produced another solid set of results with the UK business growing ahead of the market while facing into strong annual comparisons. This has delivered Tesco’s highest UK market share in over a decade, now standing at 28.7% as measured by Worldpanel by Numerator’s grocery tracking service. 

Sainsbury’s Q3 and Christmas propelled by online 

Sainsbury's continued its run of strong sales with its third-quarter trading results, covering 16 weeks to 3 January 2026. Total group sales were in 3.9% growth, with grocery sales increasing 5.4%, whilst general merchandise and clothing declined 1.1% and sales at Argos declined 1.0%. Grocery benefited from 8.0% growth in fresh food, while online sales were in 14.0% growth. Clothing sales were hampered by warmer winter weather, whilst Sainsbury’s pointed to low consumer confidence holding back general merchandise and Argos sales. 

Senior Insight Analyst, Alex Rowberry‘s view: Sainsbury’s latest results continue the trend seen for much of the past 18 months. Its core grocery business has once again outperformed the market, but overall business performance was held back by a slow-down in sales for clothing and general merchandise.  

Asda commits to Asda Price beating loyalty pricing 

Asda has strengthened its Asda Price promise, committing to being cheaper on thousands of everyday products, including loyalty card prices, than rivals Tesco, Sainsbury’s and Morrisons. The retailer now has more than 2,300 products across fresh meat, produce, chilled, core grocery and bakery categories with cheaper prices than its full-line rivals. Asda also announced members of its Asda Rewards loyalty program will earn 10% cashback on all in-store fresh produce purchases throughout January.  

Senior Insight Analyst, Alex Rowberry‘s view: the strengthening of Asda Price promise comes as questions persist on whether the strategy will improve Asda’s sales performance. The change of communication for Asda Price, now naming its rivals, is an attempt to grab shoppers’ attention in the face of rivals Morrisons and Tesco announcing new price cuts and an extended low price guarantee respectively.  

Lidl starts 2026 with 19 new stores  

Following the opening of its 1,000th store in late November 2025, the discounter is not slowing down. It announced this week that it will be opening 19 new stores over the next 8 weeks, in particular targeting areas where it does not have an existing presence. It has also pledged an investment of £40m to refurbish over 70 stores, bringing improvements such as larger freezers and sustainability-focused refrigerants and lighting to the estate.  

Senior Insight Analyst, Michela Pearson’s: Discount is seeing strong expansion and is driving the increase in UK store numbers (alongside convenience). Lidl’s network growth saw a slight slow-down over the last couple of years, but it has ramped up again and is targeting 40 new store openings in 2026. The discounter is forecast to have over 1,200 locations by 2030, and the strong investment in store experience will help it to see continues success with shoppers. 

Find our more in the Strategic Outlook for Lidl and the UK Country Presentation. 

Waitrose to open low-carbon distribution centre in Bristol 

Waitrose & Partners will open a new 360,000 sq m distribution centre in Bristol in early 2027, to be operated by DHL. Designed as the retailer’s most eco-friendly site yet, it will include solar panels, energy-efficient systems and access to a nearby biomethane refuelling station. The site is expected to cut 2,225 tonnes of CO2 annually from its emissions. Using advanced technology and AI-driven demand forecasting to improve product availability and reduce manual processes, the facility is expected enhance delivery efficiency for 50 regional stores and support future growth. 

Supply Chain Analyst, Soline Duriez’s view: With this new site, Waitrose is strengthening its network and supporting more reliable service for customers, while also signalling a clear commitment to lower-carbon logistics. Partnering with DHL adds weight to the strategy, aligning operational upgrades with a shared focus on cleaner logistics. 

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