UK roundup: technology and staff changes, sales and acquisitions

Sainsbury’s launches AI-powered shopping aid, SmartLists

Sainsbury's has launched a new AI-powered feature to the Sainsbury’s app. SmartLists will help shoppers plan their shop, create shopping lists, find products more easily and suggest products with lower Nectar Prices. Shoppers can create lists by taking a photo of a list already written down or by describing what they are looking for in the search feature, such as “ingredients for spaghetti bolognese”. The app’s built in product finder will tell shoppers the location of products in store. The new feature is part of a wider upgrade to the Sainsbury’s app which brings together online grocery orders, inhouse ChopChop quick commerce orders, SmartLists, in-store SmartShop and enhanced Nectar experiences.

Senior Insight Analyst, Alex Rowberry’s view:

Although the AI-powered SmartLists grabs the headlines, the wider significance is Sainsbury’s consolidating its various digital features into a single app. This should reduce friction across the shopping journey, from planning a shop to finding products in store, helping Sainsbury’s make the overall experience more convenient and strengthen shopper loyalty.

Sainsbury’s held merger talks with Morrisons

Sainsbury’s held preliminary talks with Morrisons over merging the two businesses. As reported by The Financial Times, talks took place from November 2025 to February 2026, and ended when Sainsbury’s decided not to proceed. The Financial Times reported that while talks could resume, no negotiations are taking place now. Based on the latest Worldpanel by Numerator data for the 12 weeks to 6 September, the two retailers have a combined grocery market share of 23.6%, while market leader Tesco has a 27.8% share. A merger of the two companies would face scrutiny from the Competition and Markets Authority, and could require the disposal of stores in areas where estates overlap.

Senior Insight Analyst, Alex Rowberry’s view:

A merger with Morrisons would offer Sainsbury’s obvious benefits through increased scale and market share. However, the complexity of combining the two businesses, alongside the regulatory scrutiny any deal would face, sits at odds with Sainsbury’s current direction. As seen with the sale of Argos, its strategy is increasingly focused on simplifying the business and concentrating on its core grocery operations. 

AF Blakemore CEO Carol Welch has stepped down   

Carol Welch stepped down from her role at AF Blakemore on 2 October.  She joined as CEO of the multi-platform wholesale and retail business in April 2023, having previously been managing director of Odeon Cinemas Group UK & Ireland.  No replacement has yet been named and it is understood that executive chairman, Peter Blakemore will backfill the role on an interim basis in conjunction with the wider executive team. 

Insight Partner, Patrick Mitchell-Fox’s view:

Though AF Blakemore has been facing significant trading headwinds affecting all operators in retail channel wholesaling and convenience retailing, the company has been able to gain notable new business over the last year.  Its distribution arm has won the contract to supply branded ranges into Marks & Spencer stores and it also acquired Appleby Westward the SPAR distributor for south-west England, including 71 company-owned convenience stores.  The acquisition of Appleby Westward means that Blakemore is the sole SPAR distributor for all of England from the Midlands southwards plus Wales, servicing a network of almost 1,000 SPAR stores.

Morrisons trials use of StrongPoint Click & Collect grocery lockers 

Morrisons has become the first UK supermarket to introduce StrongPoint’s Click & Collect grocery locker technology. The lockers, in use across Europe for more than a decade, can store ambient, chilled, and frozen products. Morrisons Skipton store has been chosen to pilot the technology due to its high volume of click & collect orders. All click & collect orders at the store will now be fulfilled through the StrongPoint locker system. Lockers have instant two-way connections with staff for real-time support. To compliment the introduction of the lockers, Skipton’s click & collect operating times have been extended by two hours per day.

Senior Insight Analyst, Alex Rowberry’s view:

While online continues to be one of the fastest-growing grocery channels, making it consistently profitable remains a challenge. For Morrisons, reducing colleague involvement in Click & Collect while extending collection hours offers an opportunity to improve efficiency without compromising convenience. Using technology already proven across Europe should also reduce some of the risks associated with introducing a new fulfilment model.

Solving the food waste problem through collaboration: Gander, Iceland, Olio

Iceland, through its eponymous, and Food Warehouse chains and its online presence, has committed to a far-reaching food waste reduction target. While not unique among British supermarkets, what sets Iceland apart has been its adaptable and collaborative strategies that it has deployed to reach its targets.

Retail Futures Senior Partner, Bryan Roberts’ view:

What we like about Iceland’s approach is that it has four key focal points: each initiative it undertakes must have a benefit for colleagues, for shoppers, for food waste and for the business. This ‘mutual win’ approach ensures that each endeavour is not only sustainable in its purest sense but also sustainable from an operational and economic perspective too.

For more on the solving food waste topic, see how collaboration creates a better outcome for colleagues, customers and the planet.

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Wholesale group Kitwave makes another acquisition

Fast-growing wholesale sector-consolidator Kitwave has acquired First Choice Foodservice, a Burton-on-Trent-based operator serving customers across the Midlands in the pub, restaurant, café, schools and care-home sectors.  A member of the Country Range wholesale buying and marketing consortium, First Choice had sales of £23.6 million in its last reported full-year (to 30 June 2025) and stocks a range of some 4,000 products across frozen, chilled, fresh, ambient and non-food categories. 

Insight Partner, Patrick Mitchell-Fox’s view:

First Choice is the third acquisition that Kitwave has made in 2026 in the foodservice wholesale sector, having already acquired south-west-based Charles Saunders and Scotland-based Fife Creamery this year.  These purchases have added a combined £90 million+ in annual sales to Kitwave’s Foodservice division, pushing the division’s total sales towards £450 million and bringing access to new customer bases across wider regions. With the sector still offering many opportunities amongst successful regional and local wholesalers, Kitwave will likely make further acquisitions in the coming months as it aims to build coverage across all the key national regions. Kitwave’s wider business also includes wholesale operations targeting other channels such as retail and on-trade drinks, and following its most recent acquisitions, group sales are now approaching £900 million.

Poundland owner considers splitting UK and Irish operations in sale   

As the sale of Poundland’s operations continues, it is reportedly looking at selling the Irish and UK estates separately. In Ireland, Poundland operates under the Dealz banner through a network of 77 stores, with 527 currently in the UK. With a management buyout being considered, Poundland has also reported growth in its latest quarter, with adjusted like-for-like sales up 6.4%.

Senior Insight Analyst, Michela Pearson’s view:

The sale of Poundland’s operations about 18 months after it was purchased by investment firm Gordon Brothers from Pepco continues to draw both suitors and scrutiny, with concerns that the £30 million price tag may deter potential buyers and lead to an entry into administration. Each quarter into the turnaround has yielded positive results, demonstrating that a simpler pricing structure and more targeted offer is working for Poundland. Whether this will work for the business as the UK’s variety discounters enter a new era remains to be seen.

Waitrose partner with Rick Stein to offer seafood supermarket range

Waitrose has partnered with chef Rick Stein, launching his first supermarket range based around seafood. The range includes nine seafood dishes and will be rolled out from 7 October. Since the range is based on seafood, Waitrose is placing emphasis on responsibly sourcing British fish and seafood, ensuring quality and welfare. The range is set to be expanded for the festive season, with new lines being released for the big day.  

Analyst, Seth Russell’s view:

Waitrose has been following its Home of Food Lovers strategy to offer chef quality food for shoppers, and this collaboration, alongside its partnership with Angela Hartnett earlier in the year, shows how Waitrose is expanding the scope of chef quality meals on offer. These two collaborations offered in the main Waitrose proposition, with exclusive lines for Christmas, improve the retailers quality credentials and help justify its premium price position.

Co-op names new MD for Food Retail 

Following the departure of Matt Hood, major convenience retailer Co-op has announced the appointment of Alex Dower as managing director of its core Food Retail division. Heading up the Co-op’s operation of more than 2,300 corporate stores across the UK he ‘will focus on accelerating Co-op Food retail growth, strengthening the customer proposition, supporting continued innovation across stores and digital channels, and ensuring the business continues to deliver value for members while remaining true to Co-op's purpose and values.’ 

Insight Partner, Patrick Mitchell-Fox’s view:

A relatively unknown name in UK grocery retail Alex Dower’s most recent role in retail was as CEO of Holland & Barrett International (from March 2024) where he led turn-rounds in multiple markets. Previously he was Holland & Barrett’s Chief Commercial Officer since 2021, in which position he oversaw the expansion of the health retailer’s ranges in food categories.  In over thirty years of FMCG industry experience he also spent a number of years in Australia as Chief Commercial Officer for major supermarket chain Woolworths as well as having a stint as Harrods Director of Food and Restaurants in the UK.

Iceland Foods launch rapid delivery service 

Iceland Foods has launched a new rapid delivery service for online orders. The retailer is offering deliveries to be fulfilled within an hour of ordering. The service is available as of 5 October 2026, beginning in 17 London stores, and a full launch in London on 19 October. Following this, further expansion across the UK into cities such as Manchester, Birmingham, and Liverpool is set to begin on 26 October. The aim is for the service to reach 100 stores before Christmas. Orders can be completed through the Iceland app or through the website, with an offer of free deliveries on all orders to begin the launch.  

Analyst, Seth Russell‘s view:

Iceland’s expansion signals a different vision for rapid delivery. While competitors, such as Tesco this summer, are leaning on aggregators to scale quickly and have a further reach, Iceland is investing in its own fulfilment while maintaining aggregator partnerships. The approach offers greater control and potentially stronger margins, but success will depend on whether Iceland can scale the service efficiently enough to offset the added costs of in-house rapid delivery.