UK round-up: Latest retailer results, mergers and tech developments

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:

• Asda close to completing Project Future IT upgrade

• Iceland reports minimal growth in latest annual results

• Iceland announces new food-waste initiative with Olio

• United Wholesale (Scotland) reports growth in 2024

• Chelmsford Star votes to merge with Central Co-op

Asda close to completing Project Future IT upgrade 

Asda’s ‘Project Future’ IT upgrade, separating the retailer’s computer systems from Walmart, is nearing completion. As reported by The Telegraph, work is set to complete within the next couple of weeks, almost six months past its planned deadline of February this year. The project is estimated to have cost Asda more than £1 bn since work began in 2021. 

IGD Senior Insight Analyst, Alex Rowberry’s view:

Asda will be breathing a sigh of relief as the work on Project Future nears completion. Having to invest more than £1 bn at a time of rising costs will have been a serious hindrance to the retailer’s ability to keep prices competitive and coincides with a fall in the retailer’s market share. 

Iceland reports minimal growth in latest annual results 

Iceland’s results for the 52 weeks to 28 March 2025 show its sales increased by +0.2% to £4.1 bn against a comparative 53-week period for sales to 29 March 2024. The retailer reported sales were in +2.8% growth for a comparable 52-week period. Iceland opened 14 new The Food Warehouse stores and one Iceland store during this period and refinements to Iceland’s site selection process has seen 20% higher weekly sales at new The Food Warehouse stores compared with openings in the previous financial year. 

IGD Senior Insight Analyst, Alex Rowberry’s view:

Taking the comparable growth rate of +2.8%, Iceland underperformed versus the overall grocery market in 2024/25. However, it’s performance is ahead of larger retailers, helping it maintain its share of the market. The improved performance for new The Food Warehouse stores will be welcome at a time when operating costs are increasing. 

Iceland announces new food-waste initiative with Olio 

Following a trial conducted in October 2024, Iceland is now rolling out its yellow stickers to 900 stores. This means users of Olio’s food sharing app will be sent real-time alerts of discounted groceries in local stores, helping shoppers save money while reducing the amount of food wasted by the retailer.

IGD Insight Analyst, Michela Pearson’s view:

IGD’s ShopperVista data shows that sustainability becomes less important to shoppers in time of financial difficulties, as value becomes more prominent. This latest move from Iceland provides the best of both worlds, helping shoppers save money and reduce food waste at the same time. With a target of reducing its food and drink waste by 50% by 2030 (against 2017/18 baseline) shows Iceland’s strong commitment to the cause. 

United Wholesale (Scotland) reports growth in 2024 

In the latest accounts filed with Companies House, major Scottish regional wholesaler United Wholesale (Scotland) has reported total sales of £284m for the full-year 2024, up 1.4% on the previous 12-months. With a focus on an enhanced sales mix, the business also achieved an improved gross margin up to 9.5% from 9.0%. However, with operating costs rising by almost 13%, operating profit for the year fell to £6.9m, a decline of 9.9%.

IGD Insight Partner, Patrick Mitchell-Fox’s view:

Against the background of a national market that saw retail channel wholesale sales fall by 1.2% in 2024, United Wholesale (Scotland)’s positive performance, though modest, is well ahead of that trend. This is a successful outcome for the business, particularly against the headwinds of falling tobacco sales afflicting the sector. Looking forward, United Wholesale is creating new opportunities for itself with the acquisition of London-based Time Wholesale Services. This deal, completed in June, will boost United’s turnover by an estimated £85m. 

Chelmsford Star votes to merge with Central Co-op

One of the smallest surviving regional co-operative societies, Chelmsford Star, has accepted a proposal to merge the business with the largest regional society Central. The merger will now complete on 15 September. Chelmsford Star operates a mix of consumer businesses across food retail, travel and funeral services. Food retail, comprising some 33 convenience stores across Essex, is the largest division. Combined with Central, the new expanded society will include over 500 trading locations across 23 counties, reaching from the south-east to the north-west of England, and total turnover will be boosted to almost £1bn.

IGD Insight Partner, Patrick Mitchell-Fox’s view:

The financial challenges that have driven Chelmsford Star to seek this merger are another example of the difficulties now being faced by local convenience retailers in the post-Covid era. While the future of Chelmsford Star will be guaranteed as part of Central Co-op, it seems likely that loss-making stores will inevitably face closure, though the presence in Essex will now offer Central opportunities for new store development in the region.