UK roundup: latest results and online development

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:

• M&S half-year profits since the cyber attack

• Tesco rolling out improvements to Whoosh offer

• One Stop sales falling in 2024/25

• Home Bargains launch of new cleaning range

M&S half-year profits halved by cyber attack

Marks & Spencer's adjusted half-year profit before tax fell sharply to £184m, down from £413m, largely due to the cyber attack, in the period ending 27 September 2025. Although total sales rose by 22.1% to £8.0 bn, the attack forced a pause in online operations, causing a 16.4% drop in Fashion, Home and Beauty sales. Furthermore, the necessary markdowns and stock management costs dramatically cut the Food division's margin, despite an 7.8% value sales increase and 2.8% volume sales increase in the UK. Sales growth is also driven by their programme of store renewals as the 12 renewals opened over the past year have delivered sales uplifts to date of around 16%.

Insight Manager, Sneha Haria’s view: These results illustrate the financial damage of a major security breach, wiping out a significant chunk of pre-tax profit despite a £100m insurance recovery. The encouraging rise in total sales, particularly in Food, shows underlying business strength and customer loyalty. Now, all eyes are on CEO Stuart Machin to deliver on his promise of a strong profit recovery in the second half of the year to reassure the market about M&S's long-term resilience.

Tesco rolling out improvements to Whoosh offer

Tesco is delivering full-basket shopping orders via its quick commerce service, Whoosh. As reported by The Grocer, the service is believed to be operating from hundreds of stores during certain times of the day. The increased basket size is due to the roll out of car and van deliveries by Tesco’s delivery partner, Stuart. Full-basket shops are available for orders scheduled for delivery later the same day, rather than immediate delivery. It is believed Tesco will roll out later day delivery from up to 700 stores by the end of the year.

In further news, Tesco has partnered with Just Eat’s delivery-as-a-service offer, Just Eat Go, to fulfil Whoosh orders along with orders from One Stop and Booker’s symbol brands Premier, Londis, Budgens and Family Shopper.

Senior Insight Analyst, Alex Rowberry‘s view: At its first-half results, Tesco revealed despite only being a quarter of the way to reaching its full potential, Whoosh was operating profitably. This latest news points to where the service will develop next, providing shoppers the convenience of ordering a full basket shop with a guaranteed delivery later the same day. The partnership with Just Eat Go, similar to the partnership announced with Deliveroo in Ireland, should ensure Whoosh has the capacity to meet growing shopper demand.

One Stop sales fell in 2024/25

Latest accounts filed with Companies House show Tesco subsidiary One Stop saw sales down by 0.2% to £1,294m in the full year to February 2025. This is despite growing its network of stores by 34 to 1,084.  The growth in store numbers was due to continuing success in recruiting new franchise stores which grew by 37 to reach 354.  At the same time company-owned stores fell by three, from 733 to 730.

Insight Partner, Patrick Mitchell-Fox’s view: the last two years have proved a challenging time for UK convenience retailing, primarily due to the falling sales of tobacco which have been undermined both by falling consumption but also counterfeit and contraband supply.  This will have contributed significantly to the 2.5% decline in One Stop’s like-for-like sales over the year. 

Home Bargains launches new cleaning range

Home Bargains has introduced an exclusive range of cleaning products under the name Bloomz. With products including floor wipes, air fresheners, disinfectants, candles and more, Home Bargains is catering to shoppers who seek functional staples with fine fragrances. Additional products and new, seasonal scents will be available in the coming months.

Senior Insight Analyst, Michela Pearson’s view: Home Bargains has been working hard on developing its assortment, catering to a wider range of shoppers needs while continuously delivering value. With household cleaning being a key category for the variety discount sector, it’s no surprise that it has launched an exclusive range of products to attract more shoppers. Home Bargains has emerged as a clear leader in the variety discount space; read our report The Variety Discounters New Playbook for further insights on its strategy.

 

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