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 first quarter results: sales underperform wider market

• Tesco expands frozen food range with summer sales in mind

• Morrisons contemplating sale of Myton Food Group

• SPAR launches Spring footfall campaign

• Aldi promises cheapest Easter roast

• AF Blakemore to roll-out Iceland offer to independent SPAR stores

Morrisons first quarter results: sales underperform wider market 

Morrisons has released first quarter sales results covering the 13 weeks to 25 January 2026. Like-for-like sales at the retailer were up 2.8%, with total sales growing 2.6% to £4.1 billion. This is against total market growth of 3.6% and grocery inflation standing at 4.3%. The retailer reported investment in lower prices was driving immediate volume increases on key lines, while personalised loyalty offers were delivering record redemption rates and its share of online sales had improved year-on-year. 

Senior Insight Analyst, Alex Rowberry’s view: While Morrisons will be pleased to record sales growth, there will be concern in the direction of travel. Total sales have slowed consistently from the 4.2% growth achieved in its second quarter of 2025, leaving the retailer underperforming the market. With sales at Lidl growing in double digits, it once again raises the question of when Lidl might overtake Morrisons by market share. 

Tesco expands frozen food range with summer sales in mind 

Tesco has added over 140 new and improved products to its frozen food range. The refresh is aimed at summer food occasions with 11 new Firepit BBQ lines, a new Finest frozen sausage range, a refreshed Finest frozen fish range and brand exclusives. Further additions include an expanded frozen herbs range, seven new frozen desserts and nine new ice creams. Tesco said the additions were in response to increased demand for quality frozen items.  

Senior Insight Analyst, Alex Rowberry’s view: Frozen items have long been seen by shoppers as a way of managing household budgets. The increase in demand for quality frozen items suggests higher income households are turning to frozen items, which also bring convenience in meal preparation and time saving. With its rivals focusing investment elsewhere in stores, and the importance of seasonal events to sales, Tesco seems to have identified a gap in the market that will boost summer sales. 

Morrisons contemplating sale of Myton Food Group 

Morrisons is rumoured to be exploring options for the sale of its in-house manufacturing operation, Myton Food Group. As reported by The Daily Telegraph, the retailer has entered talks with at least one private equity firm, prompted by an unsolicited approach, with other interested parties standing by. The news comes as Morrisons has been exploring various options to manage costs and reduce its debt burden. 

Senior Insight Analyst, Alex Rowberry’s view: The sale of its food production business, described as part of the retailer’s DNA, would be a significant move by Morrisons, highlighting the lasting impact of the debt burden associated with the retailer’s purchase in 2021. It raises the question of how secure Market Street is in its current guise, and whether it moves to a fully pre-packed and pre-baked offer if the cost of running counters becomes too prohibitive. 

SPAR UK launches Spring footfall campaign

SPAR UK has enlisted media fitness guru Mr Motivator to head up a campaign to highlight the health and time-saving benefits of shopping little-and-often in local convenience stores.  ‘Fuel your Spring’ seeks to incentivise shopping frequency and small basket missions by offering in-store rewards and prize-draw entries to promote daily visits to SPAR stores as a readily achievable healthy habit.  Kicking off the campaign the ‘Step to SPAR challenge’ runs from 20 March to 20 April with shoppers able to use a card to collect points for each visit to unlock prizes as well as the opportunity to win one of ten £1,000 payouts.

Insight Partner, Patrick Mitchell-Fox’s view: this campaign from SPAR helps reinforce the key characteristics of SPAR stores as both ‘local’ and ‘convenient’ and highlights the synergies to be found in shopping on foot and driving increased visits to stores.   It helps build the perception of how SPAR is a part of everyday life in communities across the UK, and this initiative shows how convenience retail can play a meaningful role in wellbeing, movement and local connection. 

Aldi promises cheapest Easter roast 

The discounter has announced it will offer the UK’s cheapest lamb this Easter, alongside key vegetables being priced from 15p. It is boasting being able to offer a roast for a family of four for under £9, highlighting its value offering and solidifying its position as cheapest supermarket in the market. For more indulgent shoppers, it is also launching premium private label Specially Selected Lamb Wellington and beef sirloin for a more luxurious experience. 

Senior Insight Analyst, Michela Pearson’s view: Aldi is looking to target families as its key shopper demographic, and tapping into key seasonal events is a big part of the strategy. While continuing to offer value, the proposition of more premium products gives shoppers more choice and leverages the growth of dining-in. Aldi also recently launched a Parent Panel, helping it further tailor its offer and assortment to UK families, as well as the return of its Mamia New Parent fund. 

AF Blakemore to roll-out Iceland offer to independent SPAR stores

Major SPAR UK distributor AF Blakemore, which services most of the SPAR network across southern Britain, is understood to be launching an Iceland branded frozen offer for independent stores in its network.  This follows a trial of Iceland products in 20 of its company-owned stores that has been running since June 2025.  The current Iceland range in Blakemore stores comprises 28 lines featured in branded freezers and includes a number of Iceland’s signature brand partnership products licensed from the likes of Greggs, Harry Ramsden and Myprotein as well as core Iceland private labels.

Insight Analyst, Patrick Mitchell-Fox’s view: the opportunity for independent SPAR retailers to stock Iceland products would be a significant boost to their capability in servicing the ‘food-for-later/tonight’ mission, allowing them to bring products with strong brand recognition backed by a strong value proposition and ongoing innovation to their shoppers.  In addition, from the retailers’ perspective, the long-life of frozen products has the major benefit of notably lower risk of product wastage versus chilled equivalents, which should make this Iceland offer a compelling proposition from a commercial point-of-view. 

 

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