UK roundup: leadership changes and trading results

David Potts appointed as Asda CEO  

Asda has appointed former Tesco UK and Morrisons CEO David Potts as its new CEO. Potts will take up the role with immediate effect with Allan Leighton becoming Non-Executive Group Chairman. Potts will take control of the day-to-day operations with Leighton continuing to oversee the retailer’s strategy, Formula for Growth. Potts joins two years into Leighton’s expected five-year timeframe for returning Asda to its former market position. The ‘more than a supermarket’ approach will see the retailer strengthen core grocery operations whilst also developing the business beyond traditional supermarket retailing in areas such as clothing, fuel and convenience.

Senior Insight Analyst, Alex Rowberry’s view:

Potts arrives at a pivotal stage in Asda’s turnaround. Over the past year, the retailer has restored much of its price competitiveness, stabilised its technology platforms and laid the foundations for stronger customer engagement through loyalty and online improvements. However, with Aldi and Lidl firmly established and competitors continuing to invest heavily, his first 12 months will be less about catching up and more about giving shoppers compelling reasons to choose Asda. Potts brings a proven track record of operational execution, but success will depend on converting recent investments into sustained growth in sales, customer numbers and market share.

M&S records strong growth in H1, particularly in food  

M&S has reported its half-year results for 2026/27 recording a total sales growth of 16.2% year-on-year. This has meant the half-year revenue reached £9.2bn. Adjusted operating profit is also up a significant amount at £403.2m compared to £181.4m in the same period last year. The standout metric is the sales growth of M&S Food products reaching 13.9%, boosted by a successful performance from Ocado Retail, with the retailer’s food sales on Ocado Retail’s website increasing by 22.8%. Fashion, Home & Beauty also saw growth at 17.5%, while international sales grew by 22.1%.

Analyst, Seth Russell’s view:

The strong growth shown by M&S can be heavily attributed to the base level it is compared to, when M&S was hit by cyberattacks impacting its business operations and stagnating growth for a long period. The growth across the business does also show just how well recovery from the cyberattacks has been, with only one year having passed yet M&S are posting incredible growth figures. The ongoing investment into its food business through expansion, innovation, and discounts to attract new shoppers will have also played a significant role in the retailer’s growth throughout the first half of the financial year. Whether the significantly high level of growth will maintain once the baseline has reached normal sales periods is yet to be seen.

Tesco agrees sale of Czech Republic and Slovakia businesses  

Tesco has agreed the sale of its businesses in the Czechia and Slovakia to Ahold Delhaize. The sales are expected to complete in the second half of 2027, subject to antitrust and regulatory approval. The total enterprise value of the sale stands at €1.7 billion (£1.5 billion) on a cash and debt free basis, with Tesco expecting to return the majority of net cash proceeds to shareholders via incremental share buyback. Tesco is also expected to sell its Hungary business, although the timeframe for this is unknown due to legislative barriers in the country.

Senior Insight Analyst, Alex Rowberry’s view:

While Tesco’s Central European operations remain profitable, they play a relatively small role within the wider group. The disposal is less about short-term financial gains and more about strategic focus. By exiting the region, Tesco can direct more capital and management attention towards the UK and Ireland, where its scale, Clubcard ecosystem, convenience network and growing retail media operations provide clear competitive advantages. The move reinforces Tesco’s commitment to markets where it sees the greatest opportunity to generate sustainable long-term growth.

Tesco reportedly interested in 150 Poundland locations  

As Poundland’s future remains uncertain and a split of its store estate begins to look likely, Tesco is the latest retailer to put its hand up for a number of the variety discounter’s locations. It joins the ranks of Lidl, B&M, Iceland, CDS Superstores and Poundstretcher owner Fortress Investment Group, who have all expressed interest in parts of the network. 

Senior Insight Analyst, Michela Pearson’s view:

Poundland’s high-street locations are smaller than existing stores for most of the retailers showing interest in acquisitions, so we will see formats being adapted. There is also likely to be concern from the competition authority, especially for the likes of Tesco and Iceland.

Morrisons begins roll out of range optimisation across supermarket estate  

Morrisons is rolling out a major range optimisation across its supermarket estate. Following a successful trial in three stores the optimisation programme is expected to continue into 2027. Morrisons is seeking improved availability and increased volume sales from the simplified product range. As reported by The Grocer, Morrisons is using data from its loyalty scheme in combination with its MoreViu category management platform to guide decisions tailored to individual stores. The retailer has stated that around 75% of its current product range generates just 20% of sales. Slower-selling and duplicate products are the target of reductions, freeing up shelf space and visibility for high selling lines.

Senior Insight Analyst, Alex Rowberry’s view:

With inflation driving much of the grocery market's growth in recent years, retailers remain focused on finding new sources of volume growth. Morrisons range optimisation programme reflects the increasing use of loyalty and customer data to improve ranging decisions at store level. By removing slower-selling and duplicative products, the retailer can create more space for the products shoppers buy most often, improving availability and simplifying choice. The approach should also improve the productivity of shelf space, helping Morrisons sell more from a tighter, better-targeted range.

CDS Superstores reports strong growth in 2025  

CDS Superstores, the owner of Wilko and The Range reported sales of £1.7bn, up 16.4% on the previous year, in the year ending 1 February 2026 for its operations across the UK and ROI. Like-for-like sales were up 2.6%, driven predominantly by high demand in the outdoor category and strong performance in the online channel, driven by the acquisition of Homebase IP and strong performance from The Range’s website (£5.5m worth of growth) as well. 

Senior Insight Analyst, Michela Pearson’s view:

CDS Superstores’ success stems from the very successful integration of both Wilko’s and Homebase’s operations over the last few years, as well as continued demand for value from UK shoppers. It presents a strong competitor to grocery retailers across key categories such as household and health and beauty, and with its recent investment to develop a marketplace, will present as a key rival in the online non-food space too. Fellow variety discounters should also be concerned; strong expansion in the Wilko estate, which may be aided by the acquisition of select Poundland locations, will increase its reach and competitiveness alongside the newly developed partnership with Morrisons.

One Stop 2026 accounts show convenience channel operating pressures  

The latest accounts for Tesco convenience subsidiary One Stop Stores for the full-year to the 28 February 2026 records turnover of £1,310m for the 53-week period, representing a 1.5% decline versus 2025 on a pro rata basis. The figures reflect the continuing headwinds faced by UK convenience operators but also show the impact of a changing mix of business in the company as its company-owned estate saw some rationalisation (down 16 stores to 714) while its franchise estate grew by 32 stores to 386. With revenue per store notably lower from franchise stores versus the full sales of company-owned units, overall revenue was further depressed despite the increase of stores in the overall One Stop network from 1,084 to 1,100 in the year. 

Insight Partner, Patrick Mitchell-Fox’s view:

Going forward the directors state that they ‘expect an increase in focus on independently operated franchise stores throughout the next financial period’ indicating a further shift in business mix away from company-owned stores. Despite a reduction in the number of directly run stores and staff numbers, staff costs nevertheless increased in the latest year putting pressure on profitability. In the franchise stores staff costs are borne by the independent owners. Even though the business was able to post an operating profit of £11.9m (versus a loss in 2025), that represents a margin of just 0.9%.

Waitrose continue its expansion into airport retail   

After a successful launch in RELAY’s Heathrow Airport store in May, Waitrose have expanded its wholesale partnership with its parent company Lagardère Travel Retail to open a within three RELAY stores in Bristol Airport from summer 2027. These sites are spread with two airside and one landside, presenting Waitrose’s proposition to more shoppers across the country in another high traffic airport.

Analyst, Seth Russell’s view:

Unsurprisingly, Waitrose’s launch in RELAY stores in Heathrow was a success, prompting the retail to expand its ambitions within specifically airport retail. By expanding into three new stores Waitrose is really pushing its brand to more people in the UK across major travel hubs, with Bristol Airport being one of the fastest growing transport hubs in the country. This diversification of Waitrose’s portfolio is just what it needs to compete with other retailers in the UK, looking to capture some share from travel retail competitors such as WH Smith, while also competing with fierce rivals M&S.