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:

• Aldi to ramp up expansion investment

• Co-op announces 18-store development programme for Q1

• Booker’s Scoot quick commerce hits 300-store milestone

• TikTok Shop becomes the fourth largest beauty retailer

• Understand the controversial HFSS changes on the horizon

• JD.com to officially launch Joybuy website in March

Aldi to ramp up expansion investment

Aldi will invest £370m in 40 new store openings in 2026 as part of its broader £1.6bn investment plan in the market. The goal is to reach a total network of 1,500 stores across the UK, and the latest wave of openings will be focused on areas where the retailer does not yet have a presence. In addition, Aldi invested £22m in price cuts in January, growing its appeal for value-focused shoppers.

Senior Insight Analyst, Michela Pearson’s view: Aldi’s commitment to “make high-quality, affordable groceries accessible to everybody” is continuing, with this latest wave of investment highlighting the need for a broader spread of locations for value-focused retailers. Price cuts continue to support Aldi’s claim as the nation’s cheapest supermarket, and new locations will be sure to attract many new shoppers from competitors in the region.

Co-op announces 18-store development programme for Q1

Major national convenience retailer Co-op has published the list of 18 stores that it will open or reopen in the course of the first three months of 2026. The 18 stores include wholly new corporate sites such as Willowbrook in Oxfordshire, new franchise openings such as Ealing in London and existing stores re-opened after transformative investment in refurbishment such as Eastern Green in Coventry. Other locations to benefit from this investment include towns and villages throughout mainland Great Britain from the South-West of England up to Aberdeenshire in Scotland.

Insight Partner, Patrick Mitchell-Fox’s view: this programme of store development shows Co-op’s continued commitment to investment enhancing its position as a leading force in local and neighbourhood retailing across the UK. These 18 stores will all be ‘core’ format Co-ops focussed on acting as ‘local hubs’, offering a broad convenience proposition alongside added services. Stores will offer coffee, bakery; Fairtrade products; fresh and healthy produce as well as services including bill payment, parcel collection and returns and online home delivery through Co-op’s range of quick commerce partnerships.

Booker’s Scoot quick commerce hits 300-store milestone

A year on from its launch in February 2025, there are now 300 active stores trading on Booker’s Scoot quick commerce platform for independent retailers. With a current strong pipeline of more potential recruits, Booker forecasts that the number will reach 400 by the end of February 2026. Offering delivery in as little as 30 minutes, the app-based service presents a low commissions/fees alternative to the major aggregators such as Deliveroo. To help drive shopper uptake Scoot offers a selection of exclusive, competitive three-week deals on key categories such as soft drinks, alcohol, snacks, and confectionery.

Insight Partner, Patrick Mitchell-Fox’s view: following the example of Snappy Shopper Scoot allows independent retailers the flexibility to retain control over the delivery service provided. This enables them to receive (and retain) the charges levied for the fulfilment of orders making the service a potential incremental profit stream. Booker estimates retailers can make an additional £34,000 of profit a-year, based on sales through the app of £2,500 a-week.

TikTok Shop becomes the fourth largest beauty retailer

TikTok Shop has accelerated its influence in the UK beauty sector, reporting 60% year‑on‑year growth, becoming the UK’s fourth largest beauty retailer. Growth is driven by the platform’s discovery‑led shopping model, where creators, trends, and ingredient‑focused content shape purchase decisions. Beauty products now sell at a rate of one per second, with K‑beauty, mature skincare and dry skin solutions emerging as standout growth areas.

Senior Insight Analyst, Rachel Sibson‘s view: in our global health & beauty trends report, we highlight how social commerce is developing to become more influential through discovery, engagement and purchasing channels. Social media platforms will continue to drive trends, with influencer partnerships playing a significant role in shaping consumer behaviour. Shopping directly through these platforms is becoming more integrated into the shopping journey. TikTok Shop’s blend of entertainment, product education and commerce continues to shift shopper behaviour, positioning the platform as an increasingly disruptive player in the UK health & beauty landscape.

Controversial HFSS changes on the horizon

The UK Government’s January Impact Statement on the 10 Year Health Plan for England has pushed HFSS regulations back to the top of the commercial agenda. It signals policy changes that will directly impact retailers and suppliers, and implementation will happen quickly. Responding to this will be a complex task for the industry, involving considerable time and resources. For more on this topic, read our in-depth article about the proposal and its potential impacts.

Retail Futures Senior Partner, Laura Jacobson’s view: This development shows that HFSS policy is evolving rather than winding down. The combination of the changes proposed and others being discussed, if they come into force, would significantly reshape how food businesses classify products, manage data, and demonstrate progress on health. Given this, businesses must engage with the changes, involve a range of teams in considering how to react and respond to them, and stay up to date with the consultation.

JD.com to officially launch Joybuy website in March

JD.com, China’s largest retailer with sales of US$159 bn (£116.3 bn) in 2025, will officially launch its Joybuy website in the UK in March. Currently operating in Beta test mode, the full launch will see the website offer shoppers products across a diverse range of categories including groceries, health and wellness, home electronics. homeware, car essentials, and beauty. Its grocery section features products from Morrisons and operates a Tesco Price Match on selected lines.

Senior Insight Analyst, Alex Rowberry’s view: backed by China’s largest retailer, Joybuy has the potential to disrupt the UK online grocery market. Judging from the limited grocery range present in its beta phase and the wide assortment of categories and products listed across the site, Joybuy is likely to be of greatest concern to Amazon and Tesco’s Marketplace, rather than retailer’s groceries online services.

 

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