UK roundup: latest market performance, results, and initiatives

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

Latest Kantar data shows GB market up 5%
Morrisons reports Q2 L4Ls up 3.9%
Amazon to invest £40 bn in the UK
Iceland to roll out facial recognition cameras
Aldi to introduce shorter payment times for small suppliers

Latest Kantar data shows GB market up 5%

Kantar Worldpanel data for the 12 weeks to 15 June 2025 showed grocery retail market growth accelerating to 5.0%, boosted by higher inflation in the latest month. Ocado and Lidl were still well ahead of the pack in terms of retailer performance, growing at 12.2% and 11.2% respectively in the period. Meanwhile, Tesco has continued to trade strongly at +7.0%, above the market average, which helped it gain market share, reaching 28.1%.

Patrick Mitchell-Fox, Insight Partner’s view: the relative order of retailer performance remains as it has been for much of 2025. Asda and Morrisons remain notably behind the market, though only Asda was actually in negative territory. With Asda’s market share falling to 11.9% (well behind Sainsbury’s on 15.2%), it is now only a single percentage point ahead of still-growing Aldi. At the current rate of change, Aldi could overtake Asda as number three in the market before the end of 2025.

Morrisons reports Q2 L4Ls up 3.9%

Announcing its trading update for the 13 weeks to 27 April 2025, Morrisons reported total sales of £3.9bn, up 4.2% on the previous year. Commenting on the results, CEO Rami Baitiéh said: ‘The renewal and modernisation of Morrisons continues at pace. During the period, we commenced trials of a number of new in-store initiatives including a new look Market Street with Farm Shop influences and more added-value products; a new World Foods offer; and a tighter, sharper range which highlights innovation and newness across the store.’

Alex Rowberry, Senior Insight Analyst’s view: while Morrisons recovery has not been stellar, it has at least been steady. This is the 10th consecutive quarter the retailer has reported positive like-for-like sales. Meanwhile, Morrisons continues to look to the convenience channel for incremental growth; 42 new Morrisons Daily franchises were opened in the period, and the company sees ongoing potential for hundreds more.

Amazon to invest £40 bn in UK

Amazon will build four new fulfilment centres across the country over the next three years, with two sites in the East Midlands due to open in 2027. It will also invest in two new London buildings for its corporate headquarters, upgrading its delivery network, and building data centres.

Insight Manager, Michela Jay’s view: the UK is Amazon’s third largest market, and it has invested over £75 bn in its operations over the last 10 years. With sales growth of 15.9% in 2024, this investment highlights Amazon’s strategy to grow continuously in the market. Our newly launched channel forecasts for the UK show that online will be the fastest-growing channel to 2030, with strong growth expected in the short term.

Iceland to roll out facial recognition cameras

Frozen food specialist, Iceland is currently trialling Facewatch technology in two stores, with plans to roll it out to six more in the near future. The technology, employed by other retailers, including Home Bargains, Asda and B&M, uses cameras to scan faces and match them against a database of known offenders. If there is a match, store staff are alerted.

Insight Analyst, Michela Pearson’s view: Shoplifting and violence against retail workers have risen, and many retailers are turning to technology and AI to help them tackle the issue. However, not everyone has welcomed the technology, with shoppers increasingly concerned about privacy. Retailers are also turning to the government to help them with legislation, such as removing the current £200 threshold that classifies smaller thefts as a summary offence, and making assaulting retail workers a separate offence.

Aldi to introduce shorter payment times for small suppliers

Discounter Aldi will accelerate payments to fresh suppliers who have an annual turnover below £5m. The move comes as smaller growers are under increasing pressure, with adverse weather and challenging economic conditions causing them to struggle.