UK roundup: latest results and strategy updates

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:

• Sainsbury’s reports strong sales across its operations in first quarter results

• Morrisons brings in changes to Market Street offer

• Asda sets sights on overtaking Primark as UK’s number once clothing retailer

• The Range and Wilko seek expansion support

• Southern Co-op to divest 22 stores

• Co-Op and Just Eat partner for new Quick-Commerce service, Jet Go

• Government proposals and policy impact: EPR and health plan

• IGD launch new Away From Home insight service

Sainsbury’s reports strong sales across its operations in first quarter results

Sainsbury’s first quarter results, covering the 16 weeks to 21 June 2025, show strong growth across all elements of its operations. Total sales were in +4.9% growth, grocery sales were in +5.0% growth, Sainsbury’s general merchandise and clothing sales increased +4.2% and Argos sales increased +4.4%.

Senior Insight Analyst, Alex Rowberry’s view: A strong first quarter result for Sainsbury’s has been helped by its general merchandise offer reporting strong growth. However, due to a weak 2024 sales performance, it is too early to tell if general merchandise sales have turned a corner.

Morrisons brings in changes to Market Street offer

Morrisons has launched ‘Market Street Mondays’ offering shoppers with a More Card 10% off its Café and Market Street counters every Monday for the duration of summer. The retailer is also moving to a pre-packed model for its butcher counters, setting a target of 100 stores using the format by the end of the year, 60 stores are already using the new format.

Senior Insight Analyst, Alex Rowberry’s view: Morrisons has identified Market Street as a key component for growth with plans to develop the farmer’s market aspect of the counters. The news of 10% off on Mondays will be aimed at boosting footfall on a traditionally slower trading day. The move to pre-packed butchers cuts falls under Morrisons goal of increasing efficiency savings. 

Asda sets sights on overtaking Primark as UK’s number once clothing retailer

Asda has set its sights on its George clothing brand overtaking Primark as the number one clothing retailer in the UK. George clothing is currently the 3^rd largest clothing retailer in the UK, sitting behind Primark and Next. Up to 100 Asda stores will be upgraded to provide greater prominence to the George brand.

Senior Insight Analyst, Alex Rowberry’s view: Asda is investing in the strongest performing element of its business. George reported a +3.5% increase in sales in the retailers’ first quarter results against a total business performance of -5.9%. If successful, an upgraded presence for George could act as a footfall driver to stores, helping boost grocery sales.

The Range and Wilko seek expansion support

CDS Superstores, the owner of both variety discount banners, is seeking support from property owners and landlords to accelerate its store expansion plans. It has been investing in its supply chain to facilitate the opening of Wilko stores in city centre areas and The Range stores in out-of-town sites.

Dan Butler, Senior Insight Analyst’s view: even though the food discounters, Aldi and Lidl, will drive most value growth in the discount channel to 2030, their private label heavy assortments are challenging for brands to penetrate. The variety discounters of The Range, Wilko, B&M and Home Bargains have ambitious expansion plans and should be targeted by suppliers, especially in non-food categories.

Southern Co-op to divest 22 stores

Southern Co-op has announced it is to dispose of 22 convenience stores, representing around 10% of its company-owned and operated food retail estate.  20 of these are being sold to two third-party retailers while the remaining two will be converted to the Welcome franchise format to be operated by independent retailers.  The trigger for this has been cited as ‘a period of sustained market change and operating cost increases across the retail sector’.

IGD Insight Partner, Patrick Mitchell-Fox’s view: at a time when many major retailers are looking to expand their convenience operations this sell-off seems likely to be a ready opportunity for some of them to hit their ambitious new store targets.  However, at the same time this rationalisation by Southern seems to flag the increasing challenges now being faced by retailers in sustaining successful operations in small store footprints.

Co-Op and Just Eat partner for new Quick-Commerce service, Jet Go

Just Eat and Co-Op have announced their partnership for the launch of the new Delivery-as-a-Service solution, Jet Go. This involves using Just Eat’s delivery network in partnership with the retailer’s digital storefront and fulfilment. Co-Op's new partnership will prove to be the key enabler for their new e-commerce platform, Peckish which aims to connect Co-Op stores nationwide and independents to a quick-commerce market.

Head of Supply Chain Insights, James Rothwell’s view: Delivery-as-a-Service is gaining traction in the UK, allowing retailers to sell directly to consumers through their own websites and apps. Unlike traditional marketplace apps such as Deliveroo, this “white-label” approach lets retailers offer a unique customer experience. Notably, Tesco’s Whoosh, powered by Deliveroo’s DaaS solution, exceeded expectations at launch. More retailers are expected to adopt similar strategies to stand out and customise the customer journey.

IGD launch new Away From Home insight service

Hospitality and catering businesses can now access comprehensive market data and expert insight with IGD’s new service, Away From Home (AFH). Developed based on the views and needs of the industry, Away From Home is a flexible, client-focused business solution, offering a full market view spanning 100 sub-sectors in hospitality and catering. Combined with evidence-based insight and strategic foresight from our experts, AFH ensures you are equipped to identify and unlock future growth opportunities.

Director of Shopper and AFH insight, Rhian Thomas says: “This service is built around offering strategic foresight. We don’t just report on the market; we help you see what’s next. With five-year market forecasts, global research, and analysts who visit over 40 countries annually, we bring future trends to life. Our insights support long-term planning, innovation, and a clearer vision for growth in the ever-evolving Away From Home channel.”

Government proposals and policy impact: EPR and health plan

To understand the impact on businesses following the publication of the Final EPR fees, read our article on the topic.

Following the launch of the NHS 10 year plan, see our coverage of the topic on the health page.

 

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