UK roundup: loyalty and store updates, Asda growth

Supermarket loyalty enhancements

Sainsbury’s has launched a series of weekend Nectar Prices promotional events, kicking off with half-price discounts on selected fresh fruit and vegetables across four consecutive weekends to help shoppers save as routines reset for the new school term. Concurrently, Tesco has integrated the Be.EV charging network into its Clubcard scheme, allowing motorists to earn reward points automatically when charging their electric vehicles at more than 680 locations nationwide by linking their accounts through the Be.EV app.  

Head of Insight, Sneha Haria’s view:

These updates highlight how major supermarkets are continually evolving their proprietary data ecosystems to secure consumer loyalty. Sainsbury's targeted weekend discounting demonstrates a tactical use of Nectar to drive footfall and offer immediate relief on fresh produce during key seasonal transition periods. Meanwhile, by tying points collection to essential everyday habits like motoring and EV charging, Tesco broadens its touchpoints beyond traditional retail aisles. 

Asda returns to sales growth 

Asda has posted its first sales growth in over two years, marking a major milestone in its multi-year turnaround plan. In its latest update, the supermarket reported that like-for-like sales excluding fuel edged up 0.2% in the opening weeks of the third quarter. While second quarter revenue fell, the recent positive shift follows heavy investment in pricing, loyalty schemes, and product availability. Executive chairman Allan Leighton stressed that the retailer remains in the foothills of recovery, with plenty of ground left to cover. 

Head of Insight, Sneha Haria’s view:

This return to growth offers a vital boost for Asda after a difficult period marked by falling market share. Stabilising top-line performance proves that leadership changes and sharper focus on value are starting to resonate with shoppers. However, the recovery is still in its infancy, and Asda carries notable financial debt. Sustaining this momentum through upcoming retail partnerships and consistent price competitiveness will be essential for long-term stability in a fiercely contested UK grocery market. 

Asda completes ESL roll-out in Express stores 

Asda has now installed ESLs (Electronic Shelf-edge Labels) in all of its 517 Express convenience stores.  Starting last October the project has seen the retailer deploy some 1.2 million ESLs supplied by Vusion and its partners Renovotec and HL Display.  Included in the roll-out has been the larger 2.6 inch Vusion labels, providing a better quality screen and improved legibility for both customers and staff.  The use of ESLs in Asda Express stores automates a manual changeover process that previously required the swapping of an estimated 120,000 paper labels each week. 

Insight Partner, Patick Mitchell-Fox’s view:

With a convenience store requiring up to twenty-times fewer labels than a superstore it makes sense that retailers will seek proof of the value of ESL technology in small stores before committing to install them across larger formats as well.  The growing operating costs for retailers and the increasing burdens on store staff from things like q-comm order picking seem to make it inevitable that the efficiencies that ESLs offer will ensure they will find their way into Asda’s bigger stores before long. 

Aldi to upgrade an additional 20 stores 

As part of its £300 investment in its existing estate, Aldi is continuing to upgrade its stores; it has released a list of 25 locations across the country due to receive an upgrade (5 of which were already included on the list released in June). Focus will be placed on creating more space, updating key areas and improving the experience by making the stores easier to shop. 

Senior Insight Analyst, Michela Pearson’s view:

As Aldi’s growth in the UK has slowed, investment in stores alongside ambitious expansion will help it bring in shoppers from competitors. A total investment of £1.6bn in its UK operations will help it compete in a tough market where its share has remained mostly stable. 

Waitrose begins rolling out wellness sections in stores  

Waitrose has introduced wellbeing bays across 52 stores in a bid to meet the growing demand of supplements and functional drinks. Alongside this, Waitrose is introducing smaller pack sizes from wellness brands that are known for D2C sales, looking to allow trial before commitment to a larger purchase. Waitrose believe September to be an important trading period for health and wellbeing, as shoppers settle back into routines after the summer. The interest in wellbeing products is not only affected by the time of year, but due to consumer demand, as Waitrose have seen significant rises in interest in collagen products, electrolytes, and creatine.  

Analyst, Seth Russell‘s view:

The move to create a dedicated zone for wellness is strategically intelligent, as products within that sub-category of health & beauty are rising in demand. By providing shoppers with a one-stop shop for all wellbeing products, it will simplify the mission, while also drawing shoppers towards brands they have not previously considered. The bays also allow challenger brands the opportunity to gain visibility and establish themselves within the wellness space. This will improve the perception of Waitrose in the health & beauty space.  

M&S uses AI monitoring on dairy farms 

M&S is planning on deploying AI monitoring systems across 46 dairy farms to get better insight into animal welfare standards. Cameras capture footage of dairy cows, which the trained AI analyses. The AI has been trained by vets to have accurate analysis of cow wellbeing and behaviour. The analytics generated will create a health profile for each animal. The tool will also be used to monitor feeding time, social interactions and mobility which will be used by vets to assess each cow’s health.  

Analyst, Seth Russell‘s view:

M&S already has a strong reputation for animal welfare standards, this technology will allow the retailer to further improve these standards and also benchmark wellbeing standards for dairy cow farming. Being the first to implement the technology, M&S will also be providing a new use case for AI technology and the hardware that goes along with it, helping to accelerate the adoption of innovative agricultural technologies while supporting sustainable farming practices.