UK roundup: convenience channel developments
21 January 2026Explore the latest developments in the UK grocery retail market including Asda, Morrisons, Amazon & Poundland.
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 opens 500th Asda Express store
Morrisons consulting on changes to convenience store staff hours
Amazon launches rapid delivery grocery service
Amazon to close its first UK fulfilment centre
Poundland continues to close stores
Asda opens 500th Asda Express store
Asda has confirmed its convenience estate has passed 500 stores. The retailer made the announcement after opening new Asda Express stores in Bradford and Salford. The stores form part of Asda’s strategy to strengthen its presence in high-footfall areas, residential zones, and transport hubs. Following opening, the stores will see bakery items and food-to-go products ranged and fulfil quick commerce orders.
Convenience has been a rare bright spot for Asda, the retailer reporting its stores out-performed the wider convenience channel in its third-quarter trading results. The momentum built with 20 new stores opened at the end of 2025 is likely to continue, not only due to strong sales, but also to widen the reach of its quick commerce offer, an area of online that has seen strong sales at competitors Tesco and Sainsbury’s, while Morrisons has developed its offer with the launch of its in-house service, Morrisons Now.
— Alex Rowberry, Senior Insight Analyst
Morrisons consulting on changes to convenience store staff hours
Morrisons has begun consultations with Morrisons Daily staff as it looks for more flexibility in the hours and roles worked. As reported by The Times, in the wake of changes to its labour model, the retailer has instructed Morrisons Daily managers to hold flexibility conversations with shop-floor staff. Employees face having working hours changed and working in different stores in addition to their main place of work. Morrisons is also looking to make roles multi-skilled so that staff can fulfil tasks at in-store Post Offices and man tills, alongside regular shop-floor duties.
This news should be viewed in the context of reports Morrisons National Insurance Contributions have increased by around £75m per year, alongside further increases to the minimum wage, at a time when the retailer is seeking to make £1 bn in cost savings by the end of its financial year in October.
— Alex Rowberry, Senior Insight Analyst
Amazon launches rapid delivery grocery service
Amazon has launched a new rapid delivery service, Amazon Now. The service offers shoppers thousands of groceries and household essentials for delivery in under 30 minutes. Currently being trialled in Southwark, London, Amazon said it planned to roll the service out further in the coming months. Delivery fees for Amazon Prime members start from £1.99 compared to £3.99 for non-prime members. All orders under £15 will have a £2 fee applied.
Although Amazon closed its entire UK convenience estate at the end of last year, it hasn’t given up on growing its share of the UK grocery market. With a well-established delivery network, access to grocery and household items and operating in a familiar channel, Amazon Now stands a better chance of success than its now closed Amazon Fresh stores.
— Alex Rowberry, Senior Insight Analyst
Amazon to close its first UK fulfilment centre
Amazon has begun a formal consultation to close its Milton Keynes fulfilment centre, the company’s first UK hub which opened in 1998. This decision would impact 590 workers, which the company has announced will be offered transfers to other sites, or to its new £500m Northampton facility opening in May 2026. Amazon noted the change reflects its ongoing effort to streamline and modernise its UK operations to better support employees and customers. Part of these expansion plans include a £40bn investment over three years and four new fulfilment centres planned for 2027.
This shift sits within a larger investment cycle with Amazon prioritising modern, high-capacity infrastructure in the UK. The company’s plan to offer transfers to its employees suggests an effort to retain experienced workforce as it reshapes its network and operations.
— Soline Duriez, Supply Chain Analyst
Poundland continues to close stores
The variety discounter announced it will be shutting the doors of nine more stores as it continues its restructuring plan under new ownership. This is in addition to the 33 stores closing in early 2026, which Poundland announced in December.
Poundland is continuing its plans to close upto 150 total stores since its acquisition. In its remaining stores, it has introduced a simplified pricing structure, with roughly 60% of its grocery items priced at £1. It is also replacing its now removed frozen assortment with more chilled products.
— Michela Pearson, Senior Insight Analyst
For more information, read the Poundland Snapshot.
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