Tesco’s first-half results, latest Worldpanel data, how collaboration is solving food waste, over 800 UK fridges at risk of hacking, Parfetts rebrand
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:
Tesco’s first-half results, latest Worldpanel data, how collaboration is solving food waste,
over 800 UK fridges at risk of hacking, Parfetts rebrand
Food and online drive Tesco’s first-half growth
Tesco’s group sales excluding fuel increased 1.6% to £33.8 billion in first-half 2026/27 trading results, with UK food like-for-like sales up 2.4%. Online remained a standout performer, growing 8.4%, while Finest sales increased 8.9%. Adjusted operating profit rose 6.3% to £1.78 billion, outpacing sales growth as Tesco benefited from cost savings, improved mix and newer income streams. These include Tesco Media, where active advertiser numbers grew 17%. Media spending through Scan as you Shop devices also doubled, demonstrating how Tesco is generating additional revenue from its customer reach and digital assets.
Senior Insight Analyst, Alex Rowberry’s view:
Tesco’s sales growth has moderated as it laps a period that benefited from competitors’ cyber-security disruption. Despite this, the retailer continues to strengthen its position with shoppers, recording its highest ever net promoter score of 33. More significantly, profit growth of 6.3% has outpaced sales growth, supported by higher-margin areas such as Finest, Whoosh and retail media where Tesco has invested heavily in recent years. With operating costs continuing to rise across the industry, these additional revenue streams should leave Tesco well placed heading into 2027.
Worldpanel by Numerator: pace of UK market growth continues to slow
The latest Worldpanel by Numerator data, covering grocery purchases for the 12 weeks to 4 October, shows UK grocery market growth slowed to 1.7%, down from 2.6% in the previous 12-week period. Inflation for the four weeks to 4 October increased to 2.5%, up from 2.3% in September. Reported sales growth was strongest at M&S with 14.9% and Ocado with 12.4%, followed by 7.1% at Lidl, 2.3% at Waitrose, 1.8% at Co-op, 1.8% at Morrisons, 1.3% at Sainsbury’s, 1.0% at Tesco, 0.4% at Aldi, 0.2% at Iceland. Asda’s reported sales declined 0.5%. Worldpanel reported spend on promotions was more than £250 million higher than the corresponding period in October 2025.
Senior Insight Analyst, Alex Rowberry’s view:
The market enters the crucial golden quarter with growth continuing to soften and now trailing the rate of inflation. Retailer performance remains polarised, with premium players M&S, Ocado and Waitrose continuing to outperform, while Lidl remains the standout value operator. The additional £250m spent on promotions highlights how competitive the market has become as retailers fight for share. Slower growth at Tesco and Sainsbury's may partly reflect the scale of their loyalty-price programmes, but it also suggests shoppers remain cautious with household budgets under pressure. The final months of the year will be an important test of whether retailers can convert higher footfall into stronger volume growth.
Solving the food waste problem through collaboration: Gander, Iceland, Olio
Iceland, through its eponymous, and Food Warehouse chains and its online presence, has committed to a far-reaching food waste reduction target. While not unique among British supermarkets, what sets Iceland apart has been its adaptable and collaborative strategies that it has deployed to reach its targets. For more on this topic, read our insight on the work.
Retail Futures Senior Partner, Bryan Roberts’ view:
What we like about Iceland’s approach is that it has four key focal points: each initiative it undertakes must have a benefit for colleagues, for shoppers, for food waste and for the business. This ‘mutual win’ approach ensures that each endeavour is not only sustainable in its purest sense but also sustainable from an operational and economic perspective too.
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Over 800 fridges at UK retailers at risk of being hacked
More than 800 fridges at UK retailers are at risk of being hacked. The news, reported by The Grocer, is based on analysis carried out by UK company UK Cyber Defence. It follows the hacking of fridges at French retailers earlier this week that saw temperatures reach as high as 50°c as units were forced into continuous defrost cycles. Fridges targeted in France were manufactured by Danish company Danfoss, with out-of-date security patches. In the UK, the issue is discoverable web login pages for internet-connected fridges. This doesn’t mean these fridges are hackable, but it leaves units exposed to hacking attempts until login pages are removed from the open internet.
Senior Insight Analyst, Alex Rowberry’s view:
The growing use of connected technology is helping retailers improve efficiency, sustainability and stock management, while creating new ways to engage shoppers. However, every additional connected device increases the potential attack surface for cyber criminals. Recent incidents serve as a reminder that investing in digital capabilities must be matched by ongoing investment in cyber security. Failure to do so risks undermining the very efficiencies and growth opportunities that technology is designed to deliver.
Parfetts to rebrand as Go Local Wholesale
Fast-growing, employee-owned retail channel wholesaler, Parfetts has announced that it is changing its name to Go Local Wholesale, adopting the name of its symbol group to better reflect the key focus of the business on driving growth through its affiliated retail network. Launched in 2012, Go Local has expanded quickly amongst independent retailers and Parfetts now has over 2,000 affiliated stores helping to drive its wholesale sales to £807m in the last reported year. It now has set its sights on reaching £1bn sales and 3,000 Go Local stores.
Insight Partner, Patrick Mitchell-Fox’s view:
While the name Parfetts has significant recognition in the wholesaler’s traditional trading area in the north of England, it has less resonance across the wider country and creating a closer identification between wholesaler and retail brand will offer a more ‘joined-up’ proposition as the business seeks to develop a bigger presence in other regions. This comes as Parfetts also seeks to step-change the business for future growth by leaving the Unitas buying group to reposition as a fully independent trading entity able to engage with suppliers with a more focused, retail-led strategy.
What to read next:
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Tesco first half results offer the first glimpse of its food-first ecosystem in practice, as profits outpace sales and newer income streams support reinvestment.