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:

• Asda announces plans for £12m investment into Yorkshire stores

• Tesco launches new 621,000 sq ft Aylesford Distribution Centre

• Co-op to roll-out ‘On The Go’ format

• Poundland begins online clearance sale

• Aldi to open one store a week by the end of the year

Asda announces £12m investment plans in Yorkshire 

Asda has announced plans to invest £12m into stores based in Yorkshire and surrounding areas. The investment will see £7.2m invested in stores in Kingswood, Harrogate, York, Pudsey and Keighley, with a further £4.6m invested in two stores in Grimsby and Stockton. Work is expected to start in September 2025 and last for around seven weeks per store.

Senior Insight Analyst, Alex Rowberry’s view:

This latest investment from Asda follows the success of a £2m refresh of its Pilsworth store in March, in Greater Manchester. Based on Pilsworth, the upcoming investments are likely to focus on fresh produce, bakery and alcohol sections, with a wider update to store signage and the introduction of digital screens to the centre of stores.

Tesco launches new 621,000 sq ft Aylesford Distribution Centre

Tesco received its first delivery into its new 110,000 sq ft Frozen warehouse as part of its new Aylesford distribution complex. Alongside the Frozen chamber is a 300,000 sq ft chilled area and 211,000 sq ft of ambient space to support deliveries across temperatures. This newly launched distribution centre is part of a modernisation of the Tesco network, replacing the previous regional site in Snodland, Kent. The Aylesford DC has been built with electric haulage in mind, with extensive electric vehicle charging infrastructure installed specifically for use on HGVs, supported by 90,000 sq ft of solar panels. 

Head of Supply Chain Insights, James Rothwell’s view:

The launch of this Aylesford complex is timely, following last month's announcement of a new port-centric warehouse near to London Gateway, neighbouring its older Thurrock distribution centre. These examples show a regeneration of Tesco's supply chain with sustainability and technological future-proofing in mind.

Co-op to roll-out ‘On The Go’ format

Co-op has signalled a big step-up in the roll-out of smaller format stores under its ‘On The Go’ sub banner.  First launched in 2018, only a handful of On The Go stores have been opened to date (including the iconic America Square in London), but now Co-op has launched the next generation of the format with a new store in Solihull, to be followed by a further 15 in the coming months. The ambition is to open ‘several hundred’ over a two-to-three-year timescale.  At just 600–1,000 sq ft, these stores will be notably smaller than the conventional Co-op footprint, with a major focus on food and drink for now, and a significantly pared-back grocery offer. As well as featuring established Co-op food-to-go ranges, the stores will also feature innovative hot food solutions, including pizza, and enhanced salad and ‘bowl’ options.

IGD Insight Partner, Patrick Mitchell-Fox’s view:

This roll-out seems to have been a while in coming, but the indicated scale of Co-op’s ambition for the format suggests significant belief and commitment in ‘On The Go’, which is clearly intended to be a significant engine of growth going forward. The inclusion of a serve-over concept in these stores is a first for Co-op, which has stuck rigidly to self-service operation so far. This will give Co-op a platform to compete more effectively with the food-to-go specialists such as Greggs and Subway, but On The Go will need to be operationally slick to establish its credibility against these tried and tested models.

Poundland begins online clearance sale

Struggling variety discounter Poundland is looking to sell off products, including seasonal stock, ahead of axing its online service. There are almost 500 products on sale, across food, health and beauty, cleaning, pet, and general merchandise.

Insight Analyst, Michela Pearson’s view:

Poundland’s new owner, Gordon Brothers, has wasted no time in making significant changes to the business. In addition to announcing it will axe its ecommerce offering, it is also closing 37 stores this month. The hope is that streamlining the offer and focusing on profitable physical stores will help the discounter return to growth. It is also planning to bring its clothing offering in-house from 2026, removing products from previous owner Pepco.

Aldi to add one store a week to its portfolio by the end of the year

Aldi has revealed locations will include London, East Sussex, Durham, Wales, and Leicestershire. In the long term, Aldi aims to have a network of 1,500 UK stores. The current store count is 1,050, and IGD estimates it will be adding around 40 new stores each year to 2029.

Insight Analyst, Michela Pearson’s view:

The discounter's ambitious expansion plans continue, with investments of £650m in 2025 for new openings and refurbishments. It is currently targeting London and areas where it does not have a strong presence for new stores.

Giles Hurley, Aldi CEO, stated:

One new Aldi store every week for the rest of 2025. That’s the pace of our ambition – and our promise to bring award-winning Aldi value to even more communities across the UK.