UK roundup: retailer results and health investment

Morrisons reports 15^th quarter of like-for-like growth 

Morrisons third quarter trading results, covering the 13 weeks to 26 July, revealed group sales reached £4.1 billion, a year-on-year increase of 2.5%. Like-for-like sales reached 3.2% growth, the 15^th consecutive quarterly growth for like-for-like sales. The retailer reported its market share for the quarter was growing year-on-year, and highlighted double-digit online sales growth and the opening of 71 Morrisons Daily franchise stores so far this year as strong contributors to its recent performance. 

Senior Insight Analyst, Alex Rowberry’s view:  A 15th consecutive quarter of like-for-like growth demonstrates the sustained progress Morrisons has made under Rami Baitiéh. The news that growth is coming from multiple areas of the business is encouraging, with the retailer hoping its recently launched ‘Unbeatable Prices’ initiative can build on this momentum by reinforcing its value messaging. 

Tesco launches ‘Made Without Added Nitrites’ bacon and ham range  

Tesco has launched new ‘Made without added nitrates’ bacon and ham ranges in response to growing shopping demand for the products. Online searches for products without added nitrates has increased more than 360% year-on-year. The ranges include smoked, unsmoked, and streaky bacon, as well as wafer-thin ham. Upon launch, products will be available in 668 larger Tesco stores.  

Senior Insight Analyst, Alex Rowberry’s view: The surge in online searches highlights growing shopper interest in products perceived to offer health benefits. Tesco has moved quickly to respond to this demand, with a sizeable store launch giving the range immediate visibility. To ensure a successful launch, Tesco is using eye-catching shelf packaging that sets the products apart from the rest of its fresh bacon offer. 

Health is a key pillar of IGD’s Future of the UK Food System event. Join us to hear from experts discussing how we can build a longer-term future based on the positives of changing the population’s diet.  

Morrisons to deploy ‘Shop to light’ feature in supermarkets 

Morrisons will build on the roll-out of electronic shelf labels (ESLs) across its supermarket estate with the development of flashing light technology to aid product location for shoppers. As reported by Retail Week, the retailer will integrate the technology with the Product Finder feature of its app. This will enable shoppers to trigger a flashing light on a product's ESL. Morrisons has installed ESLs in more than 200 of its 495 supermarkets, with installation set to be completed by early summer next year. The ‘shop to light’ feature is expected to be in stores by the end of November. 

Senior Insight Analyst, Alex Rowberry’s view: Morrisons is increasingly looking beyond the operational benefits of ESLs to how the technology can improve the customer experience. ‘Shop to light’ should make stores easier to navigate and products quicker to locate, demonstrating how relatively simple digital enhancements can remove friction from the in-store shopping journey. By launching the feature now, Morrisons can capitalise on being the first UK retailer to deploy ‘shop to light.’ However, as competitors continue their own ESL rollouts, this advantage is unlikely to last for long. 

Asda partners with InPost for installation of collection lockers across store estate 

Asda and leading UK out-of-home parcel locker provider, InPost, have announced a partnership that will see up to 700 InPost lockers installed across the Asda retail estate. The lockers will be installed across a mixture of Asda’s hypermarkets, supermarkets, and convenience stores. The move builds on Asda’s ambition to provide shoppers with an ‘unbeatable proposition.’ 

Senior Insight Analyst, Alex Rowberry’s view:  The addition of InPost lockers should draw in shoppers who might otherwise not visit Asda’s retail estate, leading to additional spend opportunities. The retailer will hope its recent refresh of its fresh produce and frozen categories will convert these one-off visits into repeat shoppers.