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

• UK market growth at 3.7% in 12-weeks to February

• Ocado Retail breaks £3bn sales in 2024/25

• Asda to open 10 standalone George stores in 2026

• Holland & Barrett on track to reach £1bn sales in 2026

• Ocado Group to cut 1,000 jobs in £150m saving drive

• Deal approved to take Kitwave private

• Asda discounts for Rewards members, updates on search for CEO

• Waitrose suspends mackerel sales amid over-fishing concerns

UK market growth at 3.7% in 12-weeks to February

The latest release of market-share data from Worldpanel by Numerator, covering the 12-weeks to 22 February 2026 indicates overall sector growth of 3.7% for the period, a bit behind the agencies rate of inflation which stood at 4.3%.  Ocado and Lidl remained the fasting growing retailers in the sector, achieving uplifts of 15.1% and 10.0% respectively.  Online sales are growing significantly faster than the market overall, with Worldpanel by Numerator reporting a latest four-weekly growth rate 9.7%, giving online a 13% share across the UK grocery sector. 

Insight Partner, Patrick Mitchell-Fox’s view: both Tesco and Sainsbury’s saw sales growth above the market average on 4.5% and 5.2% in this latest data, with both gaining increments of share.  Waitrose was the other notable ‘out-performer’ with sales up 5.6%.  Other retailers, including Aldi, were slightly behind the curve, while Asda remains the weakest performer in the sector with implied sales falling by 2.6%.  Asda’s market share has fallen to 11.5% from 12.3% a year ago. 

Ocado Retail breaks £3bn sales in 2024/25

Included in the full-year reporting for Ocado Group, performance results for dedicated online retailer Ocado Retail has recorded annual sales of £3.1bn an increase of 15%; reinforcing its current status as the fastest growing major retailer in the UK grocery market.  Growing ahead of the wider online grocery market Ocado now claims a 14% share of the sector.  With the average item cost rising 2.2%, growth has been primarily driven by volume rather than inflation.  The number of active Ocado customers in the year was up 12.5% to almost 1.2 million and the average number of weekly orders was up 13.1% to 500,000.  The average basket size was £124.

Insight Partner, Patrick Mitchell-Fox’s view: the high rate of growth at Ocado shows no sign of slowing significantly and its appeal to shoppers continues to expand.  Since 2021 Ocado’s count of active customers has risen at a compound annual rate of 10.3%.  However, as sales have increased so too have fulfilment costs.  In 2024/25 ‘fulfilment & delivery costs’ were up 14%, almost matching the sales uplift.  Amongst these costs the largest component is ‘service delivery’, the van deliveries to customers, which, boosted by employment costs rose 18% to £372m. 

Asda to open 10 standalone George stores in 2026 

Asda is proceeding with plans to expand its new standalone George store estate, announcing 10 stores set to open in 2026. The news follows the retailer reporting “strong” performances in the two stores opened to date, in Leeds and Hull. The first store to open this year will be the former Asda Living store in Peterborough’s Brotherhood Shopping Park, on 12 March. The new stores will feature contemporary layouts designed to enhance the shopping experience and make it easier for shoppers to explore the extended ranges on offer.  

Senior Insight Analyst Alex Rowberry‘s view: With Asda’s George fashion range a rare point of sales success, the retailer is pushing ahead with plans to grow its store estate. Along with the standalone stores, Asda is making investment of George sections in supermarkets a priority, with visits to refurbished stores identifying the areas as a notable highlight.

Holland & Barrett on track to reach £1bn sales in 2026 

Holland & Barrett’s sales climbed 11% to £981 million in the 12 months to September 2025. This is the retailer’s third consecutive year of double-digit growth. Based on this, Holland & Barrett now expects to reach £1bn in revenue in 2026. The group’s EBITDA fell from £86.2m to £81.6mn, however, total operating costs dropped from 55.1% of sales to 54.3% of sales. The high-street has been under pressure, but Holland & Barrett’s in-store performance maintained its role as the key driver of sales, generating £731.3 million. The retailer also continued to invest in bricks-and-mortar growth, opening 47 new stores across the UK and Ireland. This investment extended to Benelux, where 40 stores were refitted. Holland & Barrett also recorded strong online sales up 20%.  Boosted by an upgrade to both the app and website online sales now account for 21% of total group revenue. Holland & Barrett is also investing in international growth, expanding to 57 franchised stand-alone stores.  It has now also established a team in Shanghai to prepare for the launch of domestic operations in China. In the Middle East, Holland & Barrett strengthened partnerships in the UAE and Saudi Arabia, expanding its distribution and increasing its presence.

Insight Analyst, Seth Russell’s view: Holland & Barrett’s transformation program has continued to garner steady sales growth year-on-year.  It now has the building blocks to drive even stronger growth in the coming years, based on a solid supply chain, improved tech and upgraded stores across the UK and Ireland. It has also adapted successfully to recent trends within the health and beauty channel such as personalisation and experience-based shopping. With all this in mind, it is clear to see why Holland & Barrett are expecting to reach £1bn in sales in 2026.

Ocado Group to cut 1,000 jobs in £150m saving drive  

Ocado Group is cutting around 1,000 jobs as part of a restructuring aimed at saving £150 million in technology and support costs. The reductions mainly fall across technology, R&D and support functions, as the company scales back investment and merges internal units to reduce costs. According to the company, productivity gains from automation mean fewer roles are needed. This enables the cuts, as Ocado seeks to improve cash flow, reduce losses and reassure investors after heavy spending on international expansion and slower-than-expected returns from overseas fulfilment centres. 

Supply Chain Analyst, Soline Duriez’s view: Ocado’s restructuring shows how automation-heavy supply chain models are being pushed to prove financial value faster. As retailers demand leaner tech operations and clearer returns, investment in robotics and fulfilment technology will shift from expansion to efficiency.

Deal approved to take Kitwave private

Shareholders of the multi-channel wholesaler Kitwave have voted to approve the acquisition of the business by US private equity firm OEP Capital Advisors.  The deal is set to complete on 12 March, returning Kitwave to private ownership after its flotation in 2021.  Aiming to provide Kitwave with the benefits of long-term private ownership and flexible capital, OEP believes that the acquisition presents a compelling opportunity to advance Kitwave's strategic ambitions, accelerate its long-term growth trajectory and reinforce its position as a leading national delivered wholesaler.  By supporting the existing management the new owners will seek to strengthen Kitwave's position within the fragmented wholesale distribution market by accelerating growth in the foodservice segment and enhancing operational efficiency and digital capability.

Insight Partner, Patrick Mitchell-Fox’s view: through a concerted strategy of acquiring wholesalers with complementary capabilities throughout the UK, Kitwave has created an operation able to service a broad range of product needs in a variety of B2B customer bases, from retail to foodservice and on-trade drinks.  Operating on a delivery basis through 37 depots its last full-year report of trading (to 31 October) saw sales up by 21% to £803m.  This was significantly boosted by the integration of business acquired during the previous year.  Underlying performance was weaker with like-for-like sales falling by 1%. 

Asda discounts for Rewards members, updates on search for CEO  

Asda is launching a range of discounts for members of its Rewards loyalty scheme. The discounts will run in various forms until 12 March, with the retailer stating its aim is to help families save on household essentials and food items. Discounts will be applied once certain spend criteria are met, with shoppers seeing reductions of £2. In a separate announcement, Asda Chairman Allan Leighton, revealed the retailer’s next CEO will be promoted from its current executive group. 

Senior Insight Analyst Alex Rowberry‘s view: Asda’s loyalty scheme is the least developed of the UK’s leading full-line retailers, with Chairman Allan Leighton holding the view that everyone who shops at Asda should be rewarded. The news of short-term discounts for Rewards members could be seen as testing the water ahead of a wider roll-out later in the year, as part of the retailer’s strategy of being 5-10% cheaper than its rivals. 

Waitrose suspends mackerel sales amid overfishing concerns 

Waitrose has announced it will suspend sales of mackerel in its stores, citing mounting concerns over overfishing in the North-east Atlantic. Scientific bodies warn that mackerel stocks are under pressure due to unsustainable catch levels and the lack of international quota agreements. Waitrose says it will only resume sales once sourcing meets its sustainability standards, and in the meantime will replace mackerel with responsibly sourced MSC-certified alternatives. The retailer frames the move as a stand against overfishing and a step towards protecting long-term fish-stock health. 

Supply Chain Analyst, Soline’s view: Waitrose’s move signals a firm stance on responsible fishing. It also shows why greater transparency across seafood supply chains is essential, as decisions like this are facilitated when retailers have access to reliable and connected data. This theme is explored in our recent piece on how AI can help unify today’s fragmented industry data. 

 

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