In this instalment, our UK analysts offer their take on some of the market’s latest retailer announcements and initiatives. Here’s what you need to know about:

•  Morrisons reports stable market share in annual results

• Sainsbury’s offering Nectar card holders 50% price cuts

• B&M releases Q3 results and issues new profit warning

• Poundland reports like-for-like decline in Q1

• Iceland rolling-out sensor technology to enhance retail media offer

• Merged Central and Midcounties Co-ops relaunched as ‘OurCoop’

• Amazon trials 30-minute grocery delivery in London

• Morrisons launches travel booking service

Morrisons reports stable market share in annual results 

Morrisons reported total revenue growth of 3.2% as sales reached £15.8 bn in full year trading results covering 52 weeks to 26 October 2025. Its performance in 2025 has halted the retailer’s declining market share, which has stabilised at 8.5%. Full year like-for-like sales grew by 2.8%, while fourth quarter like-for-like growth of 2.4% sees Morrisons recording its twelfth consecutive period of like-for-like growth. Morrisons highlighted online sales growth reached double digits, resulting in an increased share of the online market. Active More Card users increased 11%, reaching 8 million. Morrisons net debt has reduced by 46% since 2022, now at £3.1 bn. 

Senior Insight Analyst, Alex Rowberry‘s view: having stabilised its market position in 2025, Morrisons will look to 2026 as the time to drive sales performance ahead of inflation. While improvements to its supermarket estate will be an important aspect, the planned growth in convenience, primarily through franchise outlets that will add the equivalent floor space of 15 supermarkets, will be key to achieving its goals. 

Sainsbury’s offering Nectar card holders 50% price cuts 

Sainsbury's has cut prices on fruit, vegetables and fridge staples by as much as 50% for Nectar card holders. Sainsbury’s introduced the cuts following online searches for ‘value’ increasing by 50% week-on-week. More than 30 products are featured in the promotion, including fresh fruit, creamy yoghurt and cheese grab-and-go staples. The promotion will run until 17 February.   

Senior Insight Analyst, Alex Rowberry’s view: while its main competitors have launched price cuts and everyday low pricing on thousands of products, Sainsbury’s has taken a modest approach to its latest price initiative. By responding quickly to an emerging online search trend, Sainsbury’s may be taking a new approach to its value messaging, bringing in shorter running but more targeted promotions to make the most of potentially short term sales opportunities.  

B&M releases Q3 results and issues new profit warning 

The variety discounter released figures for the 13-week period ending 27^th December, showing muted performance across its UK business. While B&M UK did see a positive LFL growth of 3.0% in December, thanks for seasonal ranges and non-food categories such as giftware and toys, the total LFL performance for the quarter was -0.6%. Heron Foods also performed below expectations, with LFL sales of -0.1%. 

Senior Insight Analyst, Michela Pearson’s view: B&M continues to struggle amid tough competition from the variety discount and other channels. The CEO’s Back to Basic strategy, which was announced in October, aims to address these difficulties by addressing the retailing fundamentals of price, promotions, range and availability. The strategy is likely to be successful, but will not deliver immediate results, and competitors like Home Bargains will continue to gain ground as networks grow. 

Further details on the discounters’ strategies can be found in the latest B&M and Home Bargains snapshots. 

Poundland reports like-for-like decline in Q1

The variety discounter reported a like-for-like sales decline 2.9% in the quarter ending 28th December 2025, excluding its now discontinued frozen, chilled, and online offering. Despite total like-for-like sales being down, like-for-like volume growth in its revamped FMCG ranges was up 9%, compared to an overall 2% across all categories. Poundland ended the year with 651 stores, following the closure of circa 150 stores as part of its turnaround plan under new ownership. 

Senior Insight Analyst, Michela Pearson’s view: Poundland’s turnaround strategy is showing green shoots, with the volume growth in the revamped FMCG categories highlighting how it is successfully bringing shoppers back into store with its sharpened offer. The retailer is focusing on its new pricing strategy, with 60% of its range now being priced at £1. Despite the positive outlook, MD Barry Wiliams acknowledges ‘we still have much to do’,and will continue to focus on range and price simplicity in 2026. 

Iceland rolling out sensor technology to enhance retail media offer 

Iceland foods have collaborated with STRATACACHE, a global leader of in-store retail media to deploy camera-free sensor-based technology to Iceland and The Food Warehouse stores across the UK. This technology, called WalkBase, is able to accurately confirm in-store advertisement impressions in real time by analysing in-store actions such as pathways and dwell time. Not only will this report information for Iceland’s brand partners but will also provide vital in-store insights to help Iceland themselves, advertisers, and customers.  

Insight Analyst, Seth Russell’s view: Iceland’s implementation of this technology will provide it with important insights into the effectiveness of its retail media. Iceland being the first UK and European retailer to implement this technology shows that they are investing into the future of retail media and are ahead of the curve in the market. This is a natural progression for retail media as the information gained will impact each aspect of the delivery of retail media in-store. This may be the first time this technology has been used in the UK and Europe; however we have already seen this being implemented in Asia, See our store of the month report on Lawson, Tokyo, Japan 

Further details for the latest on retail media in the UK, check out our latest Retail Media Highlights deck 

Merged Central and Midcounties Co-ops relaunched as ‘OurCoop’ 

The merger of the former Central and Midcounties Co-operatives completed on January 26 2025, creating an enlarged midlands-focused operation with over 500 food stores, alongside travel, funeralcare, Early Years and mobile, energy and broadband businesses.  Named as OurCoop the business is being led by the former Central CEO Debbie Robinson and the process of integrating the component societies is being driven by former Midcounties CEO, Phil Ponsonby.

Insight Partner, Patrick Mitchell-Fox’s view: 2025 was a challenging year for co-operative businesses in the UK with tough trading conditions compounded by the disruption to their supply chain caused by the cyber-attack on the Manchester Co-op.  The creation of this enlarged regional society offers greater scale and hence resilience for the new business to face into these headwinds.  Following this lead it seems likely that further mergers may be seen amongst the remaining (smaller) surviving regional societies in the near to medium term.

Amazon trials 30-minute grocery delivery in London 

Amazon has launched Amazon Now, a new delivery service which aims to offer thousands of grocery and essential items in around 30 minutes. After having made its debut in the US at the end of 2025, the pilot is now underway in selected London postcodes, with wider rollout planned in the coming months. Available 7 days a week, the service spans 35 categories, including fresh food, drinks, household essentials, and OTC medicine. The company commented that this launch reflects its continuous push for greater speed and convenience for customers. 

Supply Chain Analyst, Soline Duriez’s view: Ultra-fast fulfilment is becoming a differentiator, and it is emerging as one of Amazon’s focus areas. The pilot will test whether demand and the operational intensify required for 30-minute deliveries can justify broader rollout.

Morrisons launches travel booking service 

Morrisons, in partnership with Expedia, has launched a travel booking service, allowing shoppers to book hotels, flights, car hire, and other activities and earn More Points while doing so. Accessible via Morrisons website and shopping app, shoppers will earn 10 points for every £1 spent.  

Senior Insight Analyst, Alex Rowberry’s view: this latest move from Morrisons further expands the range of third-party services shoppers can access at its supermarkets and online store. By providing shoppers additional reasons to interact with its online store and app, Morrisons could boost its retail media service by highlighting the increased shopper activity on these sites. 

 

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