SWL's Retail Radar - 22/01/25

Retail Radar, from SWL, provides you with a snapshot of the latest retail news from the UK and around the globe. These narratives highlight key events, emerging trends, and notable advancements, providing a deep dive into the dynamic retail landscape.

Asda takes on rivals with a bold new Rollback price-cutting campaign

Asda is preparing to launch its most significant Rollback price reduction campaign in years, with returning CEO Allan Leighton at the helm, determined to navigate the retailer through fierce market competition and rejuvenate its performance.

The supermarket has been under increasing strain from discount chains and rival traditional grocers, culminating in its position as the poorest-performing supermarket during the Christmas trading period.

In a bid to reverse its fortunes, Leighton is spearheading a comprehensive advertising initiative to promote the price reductions, which will apply to products both in-store and online. This move follows the recent Big January Price Drop, during which average prices on selected items were slashed by 26%.

Leighton, who returned to Asda in November to replace Lord Stuart Rose, has prioritised reviving the essence of the retailer’s heritage and rekindling the spirit of its iconic Asda Price campaign. He recently stated that the turnaround strategy would focus on meeting the everyday shopping needs of working families who value affordability.

Rollback campaigns have been a hallmark of Asda since the mid-1990s, with the retailer making notable price investments over the years, including a ￡100 million commitment in 2020 while under Walmart’s ownership.

Although details of the financial commitment for this latest Rollback initiative remain undisclosed, industry experts view it as a pivotal moment for Leighton to prove his ability to transform Asda’s trajectory under the ownership of TDR Capital .

Iceland anticipates a major surge in frozen food sales this year

Iceland Foods predicts that 2025 will mark a breakthrough for frozen food in the UK, with British shoppers expected to embrace the category in a manner similar to the recent surge seen in the United States.

In the US, frozen food sales soared by 54% towards the close of 2024, and Paul Dhaliwal, Iceland’s Chief Commercial Officer, anticipates a comparable shift in the UK. This growth is likely to be fuelled by escalating living costs and a growing preference for sustainable, budget-friendly grocery options.

Recent research from Iceland highlights that nearly half of UK consumers remain unaware of the cost and nutritional advantages of frozen fish, meat, fruit, and vegetables. Additionally, 64% expressed interest in learning more about the benefits of frozen food, suggesting an opportunity for increased consumer education.

Frozen products are often found to retain higher levels of nutrients than fresh alternatives, making them an appealing choice for health-conscious shoppers. This aligns with a broader shift towards practical and economical food solutions.

Dhaliwal noted that American retail trends frequently shape UK markets and pointed to similarities in the rising popularity of frozen food over the past year. He suggested that 2025 could see a dramatic acceleration in demand, as frozen products offer substantial savings, reduced waste, and nutritional benefits.

Retailers, he added, have a significant chance to reshape public perceptions and fully capitalise on the potential of the frozen food sector.

This forecast coincides with Iceland’s largest-ever deals event, launched earlier this month to help UK families manage financial pressures during January. The retailer has expanded its ￡1 or less range to include over 1,000 items and reintroduced popular promotions such as ￡10 for 10, buy 2 get 1 free, and half-price essentials, available both in-store and online.

WHSmith set to close 17 stores as it focuses on improving operational efficiency

WHSmith is preparing to close 17 stores across the UK in the coming months as part of its ongoing efforts to restructure and optimise its operations.

With a network of over 1,100 locations nationwide, the retailer has already undertaken several closures since 2023, with further reductions planned into 2025. The latest closures, scheduled to occur by May, reflect a strategic shift as WHSmith refocuses on more profitable sites and streamlines its high street presence.

In 2023, CEO Carl Cowling indicated that the company would no longer prioritise expanding its high street footprint, arguing that additional stores would merely replicate its existing coverage.

Instead, the business is channelling its efforts into growth within travel hubs such as airports and railway stations, as well as expanding internationally in markets like the US and Europe. Currently, more than half of WHSmith’s UK locations are situated in travel-focused areas.

Despite the closures, the retailer is also pursuing expansion, with plans to open 90 new stores in high-traffic travel destinations over the same period.

The confirmed closures will run through to May 2025, with further announcements anticipated as the year progresses.

Primark is gearing up to unveil its first-ever homewares-only store

Primark has announced that it will open its first dedicated homewares store in Belfast city centre this March.

The new Primark Home store, spanning 8,700 square feet, will be located at Fountain House and will feature a range of popular homeware products, including bedding, towels, and ceramics.

This development comes as the retailer responds to the growing success of its homewares division, which has seen significant expansion since 2021.

Fintan Costello , Primark’s Head of Northern Ireland and Ireland, expressed enthusiasm about the launch, highlighting Belfast as an ideal location for the debut of this standalone concept. The new store at Fountain House will showcase an extended homeware collection, catering to the strong demand from local customers.

The announcement follows Primark’s recent unveiling of four new stores across the UK, US, France, and Spain in a single day, marking a significant step in its international growth strategy. These openings are part of a ￡37 million investment, which has added 130,000 square feet of retail space and created 580 new jobs.

The expansion builds on the launch of a new store format introduced to the UK for the first time in November, as the retailer continues to innovate and broaden its offering.

Toolstation expands its quick delivery service across the UK

Toolstation is expanding its rapid delivery service to more than 460 stores across the UK, aiming to address the increasing need for on-site delivery among tradespeople and DIY enthusiasts. This nationwide rollout comes after a successful trial in 44 locations last November, conducted in partnership with TradeKart .

The service offers delivery to job sites in as little as 30 minutes, providing access to over 10,000 products. Customers can also schedule deliveries up to seven days in advance, ensuring flexibility and convenience.

Toolstation’s Customer Director, Chris Other , highlighted the importance of speed and efficiency for their customers, noting that this service eliminates the need for tradespeople to leave their sites for last-minute items. By delivering directly to them, the service helps maintain project timelines and reduces downtime.

Orders are placed via the TradeKart app, allowing customers to track their delivery in real time. The service carries a ￡5 delivery fee, but TradeKart is celebrating the launch by offering free delivery on orders over ￡25 with a promotional code.

Alistair McAuley , Founder and CEO of TradeKart, expressed enthusiasm about the rollout, emphasising the positive feedback received during the trial. He noted that the service is now available to support over two million tradespeople across the UK, helping them save valuable time otherwise spent collecting materials.

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