UK roundup: Lidl’s performance & ESLs in Morrisons

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:

• Lidl to accelerate growth following strong sale performance

• Morrisons to install electronic shelf labels across entire supermarket estate

• Morrisons plans for hundreds of corner shops to become Daily stores revealed

• Asda partners with Evri to install ParcelShops in all Asda stores 

• Tesco and Co-op introduce bakery waste programmes

• Aldi launches “Colleague Shops” in distribution centres

• Ocado Group organisational changes

Lidl to accelerate growth following strong sale performance

The discounter saw sales jump 7.9% to £11.7 bn in its 2024/25 financial year, as its pre-tax profits nearly quadrupled to £158m. On the back of the announcement Lidl has revealed plans to open 40 stores in its current financial year, which looks to be an annual target for the next few years.

Senior Insight Analyst, Dan Butler’s view: several factors have attributed to Lidl’s impressive sales performance, as it continues to find ways to resonate with UK shoppers. Impulse bakery, Lidl Plus rewards and non-grocery promotions have become key footfall drivers, which are complimented by its value orientated assortment and private label development.

Morrisons to install electronic shelf labels across entire supermarket estate

Morrisons is partnering with VusionGroup to install electronic shelf labels (ESLs) across all 497 of its supermarkets. Work begins in early 2026 and will see 10.8m ESLs installed by time of completion, making Morrisons the first full-line retailer to use the technology across its entire estate. The retailer will upgrade in-store wi-fi infrastructure along with the ESL installation, improving shopper experience and supporting Morrisons ongoing digital development.

Senior Insight Analyst, Alex Rowberry‘s view: Retailers across the market have been trialling ESLs, with the technology’s appeal growing as business costs have increased. Morrisons will benefit from improved price accuracy while shoppers will see better communication of More Card savings. The use of ESLs, integrated with Morrisons network of shelf-edge cameras should improve replenishment and speed up picking of online orders, improving operational efficiency and profitability. 

Morrisons plans for hundreds of corner shops to become Daily stores revealed

Morrisons plans to turn 250 local shops into Morrisons Daily convenience stores in 2026 has been reported in The Telegraph. The sites will operate as Morrisons Daily franchises in areas the retailer is currently under-represented such as the south and the Midlands.

Senior Insight Analyst, Alex Rowberry‘s view: convenience is viewed as a key growth channel for Morrisons and its ambitions for new stores in the channel is well known. By going down the franchise model, the retailer will expand its presence in a capital-light way, whilst the franchise operators will benefit from access to Morrisons products and the use of its More Card loyalty programme.

Asda partners with Evri to install ParcelShops in all Asda stores 

Asda is rolling out Evri’s ParcelShop service to every one of its stores. Launched in 300 sites, the retailer claims all 1,200 of its stores will have the service in place by April 2026. The partnership will allow customers to collect and return parcels from thousands of different retailers.

Senior Insight Analyst, Alex Rowberry‘s view: One of Asda’s recently revealed strategic pillars is offering shoppers an unmatchable mix of services. The retailer will hope the growing popularity of out-of-home delivery networks will act as a footfall driver to its stores, benefitting from additional sales from customers using the parcel service.

Tesco and Co-op introduce bakery waste programmes

Tesco is rolling out signage in its in-store bakeries alerting customers that loose bakery items (excluding bread and gingerbread) will be reduced by 50% after 7pm. As of yet, there are no Clubcard requirements, and the reduction is open to all Tesco shoppers.

Co-op has rolled out a new ‘Too Good To Waste’ scheme across its stores, offering Co-op members 50% off its loose in-store bakery range after 6pm. The new initiative, which is designed to reduce food waste and offer added value to Co-op Members, is now running across the retailer’s in-store bakery range from 6pm every day and is available across all loose and unpackaged items.

Retail Futures Senior Partner, Bryan Roberts’ view: These sorts of programmes have been commonplace in mainland Europe for a while now and are gathering pace in the UK with two more retailers following Lidl by introducing evening discounts for ISB. They are a rare triple-win, with retailers seeing enhanced footfall and lower shrink, shoppers benefiting from improved value and the planet benefiting via reduced food waste. Our forthcoming global trends report highlights the war on waste as a key priority for 2026 and beyond, so it is heartening to see more retailers take concrete steps in this direction.

Aldi launches “Colleague Shops” in distribution centres

The initiative sees Aldi sell products that cannot be sold in its public stores to its staff. Rolling it out to 11 sites following a successful trial, Aldi estimates that around 240 tonnes of food will be saved a year.

Senior Insight Analyst, Michela Pearson‘s view:  Sustainability has long been one of Aldi’s Süd’s global strategic priorities, with food waste being a key area of focus. Stores around the UK were recently fitted with “reduced to clear” sections, and it’s great to see the retailer also look at reducing waste across the whole supply chain. 

Ocado Group organisational changes

Ocado Group has made a new appointment of Chief Revenue Office; Nick da la Vega will step into this role from 19 November 2025 and will lead sales and account management across grocery and non-grocery. Vega will also be responsible for Ocado’s partner relationships across 13 leading retailers in 11 markets. It has also been announced that Mark Richardson, CEO of Ocado Intelligent Automation, is retiring after 25 years and will leave the business in 2026.

Insight Manager, Michaela Jay’s view: Vega joins the business at a time where it is going from strength to strength financially. Ocado’s H1 2025 results reported a Group revenue of £674m, an increase of 13% vs H1 2024. Ocado Retail continues strong performance, with revenue growth of 16% in H1 2025. Tim Steiner, CEO of Ocado Group, said of the appointment: “It has been almost eight years since we started to bring Ocado's technology to international grocery retailers… we will now bring the benefits of this investment back to some of the world's most exciting grocery markets, with a wider fulfilment toolkit, greater flexibility and new commercial leadership”.

 

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