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: 

• Tesco first quarter results: sales slow against strong annual comparison

• Asda pre-tax losses close in on £1 billion

• B&M announces new CFO

• Asda strengthens retail media offer with Amazon Retail Ad Service

• Waitrose is extending its on-demand delivery for the rest of the world cup

Tesco first quarter results: sales slow against strong annual comparison

Tesco’s first quarter results for its 2026/27 financial year revealed total sales grew 2.3%, representing sales of £16.8 billion, while like-for-like sales grew 1.0%. For the 13 weeks to 30 May 2026, total sales excluding VAT and fuel reached £12.6 billion in the UK (+2.4%), £838 million in the Republic of Ireland (+8.5%), £1.1 billion in Central Europe (+8.3%), and £2.2 billion for Tesco’s wholesale division Booker (-2.7%). Online sales led growth in all regions, growing 8.9% in the UK, 10.9% in Republic of Ireland, and 17.4% in Central Europe. 

Senior Insight Analyst, Alex Rowberry’s view: Tesco’s first quarter results point to a broader slowdown in the UK grocery market, with modest like-for-like gains reflecting both softer shopper confidence and a tougher year-on-year comparison. Sales in the first quarter of 2025 were boosted by disruption at competitors, inflating the base, while continued global uncertainty has weighed on demand. Despite this, Tesco’s strong online growth across all regions highlights where momentum remains, helping to offset weaker underlying market conditions.

Asda pre-tax losses close in on £1 billion

Asda’s 2025 accounts filed at Companies House, reveal the retailer made a pre-tax loss of £989 million for the 12 months to 31 December 2025. The latest losses build on a loss of £599 million in the retailers 2024 financial year. Total revenue (inc. fuel) for 2025 reached £25.9 billion, a decline of 3.4%, with like-for-like sales down 3.1%. The filing also revealed the final move away from Walmart’s legacy IT system resulted additional costs of £284 million. Asda’s net debt was reduced by £500 million to stand at £3.1 billion. 

Senior Insight Analyst, Alex Rowberry’s view: Asda’s latest accounts underline the scale of its challenge, with pre-tax losses nearing £1 billion offsetting progress on debt reduction. Despite recent claims by Chairman Allan Leighton that it is 4–7% cheaper than key rivals, this is yet to translate into improved performance, with both internal and external data pointing to continued decline. This suggests price alone is not enough to drive recovery, with broader issues around perception and execution likely at play. Heading into its second half, stabilising sales, rather than returning to growth, will likely be seen as a successful performance in 2026.

B&M announces new CFO

Atheeq Akbar will join the variety discounter in February 2027; he is currently serving as the VP of Commercial Finance at Asda. With prior experience at Morrisons and Tesco, Akbar will bring a wealth of knowledge of the UK retail sector to the role. The company is currently undergoing a transformation with new CEO’s Tjeerd Jegen’s Back to B&M Basics plan.

Senior Insight Analyst, Michela Pearson’s view: B&M has been struggling to reach positive like-for-like sales across its UK estate, and has seen turbulence in its finance team, with CFO Mike Schmidt resigning in late 2025, and interim CFO Helen Cowling leaving in April 2026. Financial controller Peter Waterhouse will maintain the position until Akbar’s joining, overseeing the turnaround plan. For further details on the strategy, you can find out more about what comes next for B&M in the UK.

Asda strengthens retail media offer with Amazon Retail Ad Service 

Asda is partnering with Amazon Ads to enhance its online retail media offer. Asda will be the first retailer outside of the US to use Amazon Ads’ Amazon Retail Ad Service, which will be rolled out in phases from the fourth quarter of 2026. Asda claims the partnership marks a significant step forward in the evolution of its retail media offering. The service will enable the retailer to bring more relevant ads to its online store based on real shopping behaviour and intent, via a platform many suppliers are already familiar with.

Senior Insight Analyst, Alex Rowberry’s view: Asda’s partnership with Amazon Ads signals a clear shift towards outsourcing key capabilities to accelerate growth in priority areas. Following the partnership announcement with Ocado Group, this move highlights a strategic decision to rely on established partners rather than rebuild complex in-house systems after its costly separation from Walmart. While this should strengthen Asda’s retail media offer and improve monetisation of its online traffic, it also underlines the scale of transformation still underway as the retailer seeks to compete more effectively in digital channels.

Waitrose is extending its on-demand delivery for the rest of the world cup  

Waitrose is extending on-demand delivery for the rest of the World Cup following a major spark in demand ahead of England and Scotland matches. The retailer announced the extended hours will be across 50+ stores in England and Scotland, with most operating on-demand deliveries until midnight, while some will be 24/7. Alcohol won’t be available outside original store opening times, but grocery items will be available for purchase. The retailer has stated that it will expand the number of stores dependent on demand. Deliveries will be available from the quick-commerce aggregators Deliveroo, Uber Eats and Just Eat who have partnerships with the retailer. 

Analyst, Seth Russell‘s view: following suit of other retailers, Waitrose’s extended hours of grocery delivery are backed by demand already seen in the early days of the World Cup. Opportunities lie in snacking, confectionary, frozen and prepared meals as quick solutions for people watching the games from home with the late kick-offs. The retailer will be missing out on spend on alcohol during these extended hours but the cost of licensing to sell alcohol outside of regular hours is costly. If the teams progress, it is highly likely the extended hours will be applied to further stores across its estate as demand will continue to rise. 

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