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 signals long‑term value reset as Lidl narrows the gap

• Ocado raises competitive pressure on store‑based rivals

• M&S shift loyalty priorities by scrapping its Sparks Delivery Pass service

• ·Asda sharpens Express economics to sustain quick commerce scale

Morrisons signals long‑term value reset as Lidl narrows the gap

Morrisons has introduced price cuts to thousands of products for the duration of April. Prices have been reduced on items that regularly feature in shopper’s weekly baskets including Market Street produce, everyday essentials in the retailer’s entry level Morrisons Savers range, and brand items. The move follows Lidl growing its market share level with Morrisons in the latest Worldpanel by Numerator sales data.

Senior Insight Analyst, Alex Rowberry’s view: With the turmoil in the Middle East set to send food and drink inflation as high as 8% by June, Morrisons, working under the constraints of its debt burden, might find its ability to bring similar price cuts to the market greatly reduced. If it cannot compete with Lidl on price, Morrisons may well find the discounter replacing it as the UK’s fifth largest grocer.

Ocado raises competitive pressure on store‑based rivals

Ocado Retail has confirmed to The Grocer it is working to increase the number of same-day delivery slots across as many UK locations as possible. Currently, the online specialist offers same-day delivery slots for orders booked up to 2pm for limited postcodes. Shoppers will be able to book standard hour-long delivery slots or cheaper, flexible, four-hour slots.

Senior Insight Analyst, Alex Rowberry’s view: This news arrives with Ocado Retail enjoying a successful 12 months, leading sales growth and increasing its share of the market. This suggests the retailer is moving to meet changing shopper demand, further strengthening its position by aligning with how shoppers now expect to shop in a more convenient and speedy manner.

M&S shift loyalty priorities by scrapping its Sparks Delivery Pass service

M&S has removed its Sparks Delivery Pass for new members and will no longer allow existing members to renew their subscription after expiration. The news comes following a review of the trial service that offered shoppers a year of unlimited next-day and nominated-day delivery on clothing, beauty, and home items for a fee of £25. Unlike similar services, no minimum spend was required to receive free delivery.

Analyst, Seth Russell’s view: By removing the Sparks Delivery Pass, M&S is signalling a reassessment of how loyalty drives value. Free delivery subscriptions add cost and operational strain without reliably lifting spend, making them harder to justify. The move frees up investment for more effective loyalty mechanics, alongside a renewed emphasis on physical retail.

Asda sharpens Express economics to sustain quick commerce scale

Asda has begun using Deliverect to manage quick commerce orders from its Asda Express convenience stores. The technology platform unifies orders placed across quick commerce aggregators such as Uber Eats, Deliveroo and Just Eat into a single work stream. The platform promises improved picking accuracy and efficiency and integration with Asda’s internal systems for clearer oversight of quick commerce operations. Already in use across hundreds of stores, the platform will be rolled out further during the year.

Senior Insight Analyst, Alex Rowberry’s view: By relying on leading delivery aggregators to fulfil orders, Asda has taken a capital‑light approach to building its quick commerce proposition. However, if quick commerce is to make a meaningful contribution to Asda’s growth ambitions, it must improve profitability as well as drive sales. Using Deliverect to manage multiple partners and lift store‑level operational performance moves the channel closer to delivering sustainable growth.

What to read next: M&S accelerates food business with three new store openings and two major renewals

 

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