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 closes Shop and Go store in London

• Tesco developing in-store parcel locker service with Evri

• CDS Superstores partners with RELEX Solutions

• Snappy Shopper enables retail media implementation on retailers’ socials

• Sephora announces its first Scotland stores

Aldi closes Shop and Go store in London

Aldi has ended its venture into the autonomous space and will be converting the site to an Aldi Local. The store, opened just over four years ago, was powered by AiFi technology and allowed shoppers to tap a bank card or use an app to enter the store. The news comes shortly after Amazon announced it would be converting all its Amazon Fresh stores in London to Wholefoods.

Senior Insight Analyst, Michela Pearson’s view: The end of Aldi’s venture in the “just walk out” space comes at a time where several retailers are reassessing this technology and its benefits. While it was always intended as a trial, the decision not to further roll out the technology is aligned with Aldi's strategy to minimise costs and provide shoppers with the best value. The new local store will still aim to provide convenience via self-checkouts.

Tesco developing in-store parcel locker service with Evri

Tesco is testing an in-store parcel locker service with delivery firm Evri. The test is part of a wider trial bringing together multiple parcel providers within its stores, with Evri-branded lockers installed across a select number of Tesco Extra and supermarket locations. The trial can be viewed as part of Tesco’s drive to be the most convenient retailer for shoppers, providing reasons outside of shopping for groceries to visit its stores.

Senior Insight Analyst, Alex Rowberry’s view: Tesco says the trial will inform its decision on a wider roll-out across its estate. However, with the growing popularity of in-store lockers and similar large-scale installations by rivals Aldi and Morrisons it should be expected lockers will become a common feature across Tesco’s store estates in the near future.

CDS Superstores partners with RELEX Solutions

CDS Superstores, which operates The Range, Wilko, and Homebase, will roll out the AI-powered forecasting technology to its 285-store strong estate. CDS Superstores stated that “It’s a major step in building a modern, agile supply chain that will support the next phase of our growth”, as it continues to grow and expand across the nation.

Senior Insight Analyst, Michela Pearson’s view:  AI is becoming a larger part of retailer operations, and a key trend around the globe. Even value-driven retailers are acknowledging the fundamental role it plays in optimising efficiencies and operations, with global supply chains under increasing pressure. CDS Superstores’ investment will see it gain better foresight of demand at a store level, ensuring availability is strong and reliable across the network.

Snappy Shopper enables retail media implementation on retailers’ socials

Snappy Shopper, the quick commerce platform widely used by independent retailers to build home delivery business, has launched a new capability enabling suppliers to deliver brand activity and communication to shoppers through its retailers’ social media accounts.  The new ‘Connect’ service provides the ability to deliver centrally controlled campaigns through the social media pages of all participating Snappy Shopper retailers.  Retailers will be incentivised to join the scheme with a share of the supplier investment funding the activity and could earn between £300 and £600 annually each, based on current volumes of activity platformed by Snappy Shopper.

Insight Analyst, Patrick Mitchell-Fox’s view:  This new initiative will offer suppliers the benefit of closed-loop reporting, linking campaign engagement to both in-store and delivery purchases, giving brands clearer visibility of the commercial impact of their activity in the independent retail sector.  While for retailers the programme offers a way to benefit from the investment and impact of suppliers’ national retail media campaigns.

Sephora announces its first Scotland stores

Sephora has announced its debut into Scotland with two stores set to open this summer in Glasgow and Edinburgh. This expansion comes from high online demand for a “Scottish beauty playground” and aligns with Sephora’s continuous expansion across the UK since re-entering the market in 2023. The stores will offer Sephora UK exclusive products while also providing ranges from popular health and beauty brands. The stores will also be amongst the first to implement Sephora UK’s Beauty Scan technology, where beauty advisors can analyse customers’ skin to provide personalised consultation and product recommendation. The retailer intends for the stores to bring its ‘temples of beauty’ concept to Scotland, with double the energy and double the access. 

Analyst, Seth Russell’s view: Sephora’s expansion into Scotland will meet demands from Scottish shoppers wanting an in-store experience as well as its online offering. Opening in the two major Scottish cities allows Sephora to take full advantage of this demand and scope out the real demand for in-store beauty playgrounds in the market. Sephora is showing strong signs of growth through its expansion, last month debuting in Ireland with a store in Belfast and announcing new boutique stores in London’s Carnaby Street. This shift from primarily an online health and beauty retailer highlights the UK market’s increased demand for experience-based health and beauty stores, using technological integration to personalise experiences for shoppers. This is something Sephora does incredibly well, investing in technology to provide shoppers with personalised consultation, making its stores a destination for health and beauty conscious shoppers.

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