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: 

• Lidl to fuel store network expansion

• Aldi invests £122m in price cuts

• Tesco strengthens media margins through richer digital storytelling

• Sainsbury’s positions Nectar for a future beyond traditional retail boundaries

• Tesco looking to grow mission value with AI-led basket-building tool

• Morrisons brings back Morrisons More card stamps for Spiegelau crystal glassware

• Bestway reports declining sales and profit in 2025

Lidl to fuel store network expansion 

Lidl plans to open more than 50 new UK stores over the next 12 months as part of a £600m investment, creating around 2,000 jobs and building on its position as the UK’s fastest-growing retailer. The expansion includes new stores across England alongside further investment in logistics, such as a new Leeds warehouse and upgrades to its London distribution site. 

Insight Partner, Dan Butler‘s view: this strengthens Lidl’s ability to reach more shoppers, improve supply chain efficiency, and accelerate market share gains through scale and convenience. This will further increase competitive pressure on other supermarkets, likely intensifying price competition and accelerating consolidation and store network optimisation. 

Aldi invests £122m in price cuts 

Across the first three months of the year, the discounter has lowered the prices of over 500 essential products. More recently, this included a £16m investment to reduce prices across Easter essentials, promising shoppers the cheapest Easter roast. 

Senior Insight Analyst, Michela Pearson’s view: Aldi continues to be focused on providing shoppers with the cheapest basket in the market amid growing concerns about financial pressure due to global instability. With a renewed commitment to health and families and an ambitious expansion plan, it is reaffirming its position as a key value player that does not compromise on quality. 

Read the latest Aldi snapshot for more details on latest developments. 

Tesco strengthens media margins through richer digital storytelling  

Tesco is bringing premium video advertising to its website and app. The retailer said the new formats would be immersive and brand-safe, enabling brands to drive awareness through video at a crucial stage of the shopper journey. Video on Tesco’s in-app grocery homepage reaches over 12 million unique monthly visitors, while video on its website will appear as shoppers explore aisles and categories. Tesco Media’s closed-loop measurement will connect exposure to sales outcomes for a clearer assessment on campaign success..  

Senior Insight Analyst, Alex Rowberry’s view: this development reinforces Tesco’s ambition to lead the UK retail media market, building on wider upgrades to its video, measurement and omnichannel media capabilities. Being the first major UK grocer to embed premium video content in its app and website, backed up by closed loop reporting, will bring Tesco first-mover advantage in a highly competitive and fast developing area of the market.  

Sainsbury’s positions Nectar for a future beyond traditional retail boundaries 

Sainsbury’s has announced a partnership between its Nectar loyalty scheme and Uber and Uber Eats. Nectar members can redeem points for Uber vouchers through the Nectar app, to be used on either rides or food delivery. The partnership expands Nectar’s appeal outside of its core grocery and shopping environment, while Uber gains access to Nectar’s 24 million members.   

Senior Insight Analyst, Alex Rowberry’s view: the partnership with Uber follows Morrisons recent move into travel through its Expedia tie‑up, signalling major retailers are now actively reshaping loyalty into broader lifestyle ecosystems. By increasing their presence in shoppers’ daily routines retailers will be hoping to maintain engagement, strengthening long‑term retention in an increasingly competitive market. 

Tesco looking to grow mission value with AI-led basket building tool 

Tesco has begun tests of a new AI-powered tool to make meal planning and basket building easier for shoppers. Around 280,000 Tesco colleagues are participating in the early-access test of the tool located within Tesco’s app. The AI assistant will initially focus on meal planning through conversational prompts providing recipe ideas based on shopper’s preferences and dietary needs. A wider roll-out is expected later this year, with the assistant being seen as a key route to delivering more personalised support for shoppers.  

Senior Insight Analyst, Alex Rowberry’s view: growing volume remains a long-term challenge for the industry, with inflation expected to account for most market growth in the coming years. If successful, the new AI assistant will help build shoppers’ baskets through the power of one more. In this instance, prompting shoppers to add items to baskets that may otherwise have been missed. The cumulative affect across a year could drive meaningful volume growth for Tesco. 

Morrisons brings back More Card stamps for Spiegelau crystal glassware 

Morrisons has launched a new More Card stamps loyalty promotion. Running until 7 June, More Card members will earn stamps for every shop over £10. Members need to earn 30 stamps to activate the offer which reduces Spiegelau crystal glassware prices by up to £22. The scheme follows a similar promotion last year for Pyrex cookware.  

Senior Insight Analyst, Alex Rowberry’s view: Morrisons’ return to More Card stamps for premium Spiegelau glassware underscores its push to strengthen value perception and lift loyalty‑driven spend. By requiring 30 trips to access the discount, at a time when its sales underperform the market, Morrisons will be hoping to convert lighter, occasional shoppers into more frequent, higher-value shoppers. 

Bestway Wholesale reports declining sales and profit in 2025

In its latest financial accounts filed with Companies House (for the year to 30 June 2025), Bestway Wholesale has recorded sales down 5.5% to £2,682m.  Sharply falling tobacco sales were the primary driver of the decline, while sales in non-tobacco categories are stated to have been ‘broadly level’.  Reflecting the highly competitive UK wholesaling market and Bestway’s investment in controlling price, the business’ gross margin fell from 7.6% to 7.2%.  Impacted by this and rising business costs operating profit was down by 10.3% to £76.4m.

Insight Partner, Patrick Mitchell-Fox’s view:  With tobacco participation of over 30% in the Bestway sales mix the business still faces significant vulnerability to the ongoing decline of this category.  One means of offsetting this exposure is diversifying its customer base away from dependence on retailers and building more sustainable business in the catering channel.  In late 2024 Bestway Wholesale acquired Adams Foodservice which operates a network of cash & carry depots located mainly in the northern and midland England, which is helping expand Bestway’s reach especially amongst fast food and takeaway businesses.

 What to read next: Co-op’s turbulent 2025 sets prospect of return to growth in 2026

Looking for more insight? 

Subscribers can find out more on our UK market hub.