UK roundup: Updates to retailers’ strategies

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:

• Morrisons unveils Magic 2.0 strategy

• Asda chairman believes retailer will see off threat from Aldi

• Bestway acquires Grimsby-based Dee Bee Wholesale

• Lidl invests further in prices

• Sainsbury’s pushes on health

• Co-op prepares for World Cup quick commerce surge

• IGD highlights the industry’s need to respond to HFSS proposals

Morrisons unveils Magic 2.0 strategy

Morrisons announced the evolution of its current strategy at its 2026 Business Update. Morrisons Magic 2.0 brings in the retailer’s “Value Triangle” and raises fresh produce alongside Market Street counters as part of its aim to boost volume sales by providing better value to shoppers. Amongst a raft of announcements, the retailer highlighted greater personalisation and development of its loyalty scheme, exemplified by the launch of its World Cup sweepstake game, where app users are assigned a team, with weekly rewards unlocked the further the team progresses in the tournament.

Senior Insight Analyst, Alex Rowberry’s view: Morrisons has flexed the original Morrisons Magic strategy, launched last year, as the industry faces into rising inflation and weak consumer confidence. The retailer’s aim is to reassure shoppers with consistently good value products, whilst simplifying how it operates, to reinvest savings into further price reductions.

Asda chairman believes retailer will see off threat from Aldi

Asda Chairman, Allan Leighton believes the retailer will hold off Aldi overtaking its market share, stating “It’s not bloody inevitable.” Speaking to The Guardian, Leighton insisted his turnaround strategy would see the retailer’s performance turn a corner by its 3^rd year. Leighton was optimistic on the future, highlighting Asda’s scale in clothing and general merchandise, with ambitions to open 500 standalone Geroge stores over the next five years; the partnership with Ocado Group, to improve online sales; and plans to open 25 convenience stores a year.

Senior Insight Analyst, Alex Rowberry’s view: Recent announcements have revealed where the retailer sees its growth coming from in the next fiver years; fashion and general merchandise and developing the sales opportunity in immediacy sales through the convenience and online channels. Despite the optimism of its Chairman, with sales declining again in first quarter results Asda faces a long road back to being truly competitive.

Bestway acquires Grimsby-based Dee Bee Wholesale

It has been announced that major national cash & carry operator Bestway has purchased the Humberside regional wholesaler Dee Bee, the family business built by original Nisa co-founder Dudley (D.B.) Ramsden, who died in early 2025. Run, since his father’s retirement, by Nick Ramsden, Dee Bee operates two depots in Grimsby and Hull servicing some 1,400 retail and on-trade business customers across Lincolnshire and Yorkshire. Dee Bee now leaves the Unitas buying group of which it was a long-term member having been one of the founding businesses of its predecessor the Today’s Group (originally Nisa’s wholesale cousin).

Insight Partner, Patrick Mitchell-Fox’s view: this acquisition has clear incremental value for Bestway, giving it a direct presence on Humberside, where its nearest existing depot is in Leeds, some 60 miles away. Perhaps even more valuable to Bestway is the well-established and long-standing new customer base. Dee Bee’s decision to sell comes against a background of several years of declining sales, which saw turnover at the wholesaler fall from £68 million in 2022 to £57 million in the current year. Despite this challenge (attributed mainly to a sharp drop in tobacco sales), Dee Bee remained solidly profitable in its latest posted accounts (for 2024/25), which recorded an operating profit of £1.3 million.

Lidl invests further in prices

Lidl GB is investing £250 million to cut prices on over 1,000 everyday products and expand promotions via its Lidl Plus loyalty app, aiming to attract budget-conscious shoppers as it strengthens its position as the UK’s fifth-largest supermarket. The move includes sharper pricing on staples and a significant increase in personalised offers, alongside continued expansion plans with over 50 new stores.

Insight Partner, Dan Butler’s view: this is positive for shoppers as it intensifies price competition, helping to keep food inflation in check while improving value and access to discounts through digital loyalty schemes. It increases pressure on competitors to respond with deeper pricing, stronger loyalty propositions, and efficiency gains, accelerating the shift toward a more discount-driven and promotion-led landscape.

Sainsbury’s pushes on health

Sainsbury’s has rolled out new fibre labelling on over 500 products to help shoppers lead healthier lives and meet their fibre requirements. The retailer is adding “Full on Fibre” labelling to a broad range of products. This includes fibre-rich staples such as oats and broccoli, as well as new products launching over the course of the summer. Over 100 of these products also feature in the Aldi and Lidl price match scheme, ensuring great value.

Senior Insight Analyst, Michela Pearson’s view: This move is part of Sainsbury’s new health ambition, aligned with the increasing focus shoppers are placing on health and wellbeing. With research showing that only 4% of UK shoppers are getting enough fibre, this will support them in identifying fibre-rich products, including fruit, and with special offers planned throughout the summer, provide financial incentives for a healthier basket too.

Co-op prepares for World Cup quick commerce surge

Leading convenience retailer Co-op has announced extended delivery hours from selected stores across England and Scotland to enable shoppers to access online purchasing during group stage World Cup fixtures that extend beyond normal opening times. This means that for England versus Panama stores will continue deliveries until 1.00am and for Scotland versus Haiti stores will continue delivery until 3.30am. Co-op estimates that the 180 stores involved can access up to 40 million shoppers across cities including London, Manchester, Leeds, Liverpool, Brighton, Bristol, Aberdeen and Glasgow.

Insight Partner, Patrick Mitchell-Fox’s view: the World Cup promises to be a major opportunity for quick commerce operators by enabling England and Scotland fans to have match-night essentials, including drinks, snacks and sharing food delivered directly to their doors without the need to interrupt their viewing. Based on previous major sporting events, Co-op forecasts that online participation will rise by up to 50% at peak times in the run-up to and during games.

IGD highlights the industry’s need to respond to HFSS proposals

The UK government is consulting on applying an updated nutrient profiling model (NPM 2018) to existing HFSS advertising and placement legislation in England. The changes, announced as part of the government's 10-year health plan, would mean more products are classified as high in fat, salt and sugar (HFSS), with significant implications for how businesses can promote and place those products.

Head of Health, Hannah Daley’s view: The consultation on applying NPM 2018 to existing HFSS legislation closes on 17th June, and it is key for industry to understand the changes being proposed by the government. For more information, everyone can read a summary of our recent webinar on the key proposed changes, the categories most likely to be affected and what they could mean for businesses across the food system.

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