UK roundup: latest results and strategic partnerships

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

• Transition to new IT system impacts Asda’s Q3 results

• Asda bring supermarket prices to Express stores

• Aldi appoints new national buying MD

• Co-op pledges £1bn spend in 2026

• Deliveroo partners with Nectar

• EG On The Move rolls-out Iceland trial

Transition to new IT system impacts Asda’s Q3 results 

Asda’s third-quarter sales for the three months ending 30 September declined 3.7% to £5.1 bn. Like-for-like sales were down by 2.8%. Asda cited the operational issues at depots following the completion of ‘Project Future’, its transition away from Walmart’s IT systems as the cause. This resulted in reduced availability in stores and also affected Asda’s online and app systems. The setback is expected to delay progress of Asda’s turnaround strategy by six months. One point of positivity was Asda Express, where like-for-like sales were up 3.5%, which Asda claimed was ahead of the wider market.  

Senior Insight Analyst, Alex Rowberry‘s view: At a time when Asda is trying to convince suppliers of the merits of its price cutting strategy, the timing of the latest set of trading figures couldn’t have been worse, delivered in the same week credit rating agency, Fitch, downgraded parent company, Bellis Finco, from ‘B+’ to ‘B’. Although Asda believes it has now overcome the issues, only time will tell whether the impact of poor availability has deterred shoppers in the all important pre-Christmas trading period. 

Asda brings supermarket prices to Express stores 

Asda is matching the price of core lines in its Express convenience stores to its supermarket prices. Currently, prices are matched on 14 everyday essential products including bread, milk, chicken fillets, beef mince, cheese and some fruit and vegetables. The retailer said the exact nature of lines included will vary by store, depending on the needs of local communities. In addition, Asda has introduced promotions exclusive to Express stores. This includes two-for-£6 ready meals and pizzas, three-for-£5 on pasta, sauce and bread, and three-for-two offers on certain alcohol lines. 

Senior Insight Analyst, Alex Rowberry‘s view: Asda views convenience as a crucial platform for future growth, and its performance was a rare highlight in an otherwise downbeat third-quarter performance. In a channel notorious for higher prices compared to large stores, this move starts to address a potential weakness in Asda’s strategy of being 5-10% cheaper than rivals. It should mean wherever shoppers interact with the retailer, they experience the benefit of Asda Price.  

Aldi appoints new national buying MD

Aldi UK has promoted Will Barstow to the role of national buying managing director, replacing Stephen Eivers who has left the business.  The role of national buying MD is one of the highest profile roles in Aldi’s management structure, with wide-ranging responsibility in the discounter’s commercial function.

Insight Partner, Patrick Mitchell-Fox’s view: the appointment of Will Barstow shows Aldi’s culture of ‘promotion from within’ in action.  With 22 years of experience in the business, Will Barstow is thoroughly schooled in the highly focused disciplines that drive the discount model. 

Co-op pledges £1bn spend in 2026

Leading convenience retailer Co-op has set out its plans to meet the needs of UK shoppers in 2026, undertaking to invest £1bn over the course of the next 12 months.  A key part of this investment will go to its biggest ever programme of price reductions, focused on cutting the cost of over 1,000 product lines for shoppers.  In addition, Co-op will continue to spend on improving its store base across the country, revamping existing sites and developing new ones to boost local and neighbourhood shopping environments.

Insight Partner, Patrick Mitchell-Fox’s view:  this latest announcement on price investment shows Co-op’s commitment to creating a more competitive offer in the UK convenience sector.  Meanwhile it continues to go on targeting growth opportunities especially in food-to-go with a focus on new product development as well as the roll-out of its new ‘On the Go’ micro-format.  This week has seen the opening of the fourth of these stores; located on Clarence Street, Kingston Upon Thames it’s the first in the crucial London market. 

Deliveroo partners with Nectar 

Quick commerce aggregator, Deliveroo, has become the first delivery platform in the UK to partner with Sainsbury’s loyalty programme, Nectar. Shoppers are now able to link Nectar and Deliveroo accounts and earn Nectar points for making Sainsbury’s purchases via Deliveroo. Deliveroo fulfils orders from 1,000 Sainsbury’s sites in the UK. 

Senior Insight Analyst, Alex Rowberry‘s view: Sainsbury’s fulfils quick commerce orders through its inhouse Chop Chop service as well as via Deliveroo. This partnership aligns the shopping experience for both services, shoppers using Deliveroo no longer missing out on Nectar points. Sainsbury’s benefits from the additional loyalty data coming in from Deliveroo, enabling it to build a stronger loyalty ecosystem.  

EG On The Move rolls-out Iceland trial

Fast-growing forecourt retailer EG On The Move, now with around 150 sites, has extended its trial of in-store Iceland concessions.  Having installed the offer in 10 stores previously, the store-in-store fixtures are now included in 28 sites.  EG On The Go has hailed the success of the trial to date, with stores involved seeing an average of 11% growth in food and drink categories.  Shoppers have been attracted by the brand recognition Iceland brings with its private label ranges and its portfolio of exclusive licensed brands such as Greggs and Harry Ramsden.

Insight Partner, Patrick Mitchell-Fox’s view: building food-for-later missions has typically been a challenge for forecourt retailers and partnering with higher profile high street brands offers a solution for creating better credibility around the offer.  Iceland has been looking to expand its presence through in-store concessions with a range of partners including The Range as well as other forecourt operators.  From the host retailer’s point of view Iceland’s frozen offer also has the benefit of long product life and low merchandising intervention. 

 

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