From Tesco’s lower profit guidance to Superdrug’s accelerated retail media network investment and Easter spending predictions, what’s been making waves in retail this week?

Magnetic value: Lower profits expected at Tesco

Tesco expects to make less in profit in the year ahead as the UK supermarket price war continues to heat up. It lowered operating profit guidance for FY25/26 to give it the “firepower” to respond to growing “competitive intensity” within the UK grocery sector.

“We are setting ourselves up for the year ahead with the flexibility to continue to win in a highly competitive market,” Ken Murphy, CEO of Tesco, commented. It also said it would focus on delivering “magnetic value” to customers and powerful digital capabilities to drive competitive advantage in the year ahead.

Delivery: Sainsbury’s and Royal Mail’s deal on parcel lockers

Royal Mail and Sainsbury’s have announced a long-term partnership to roll-out parcel lockers at Sainsbury’s stores across the UK. This is Royal Mail’s first supermarket tie-up as it looks to expand its network of parcel pick-up, drop-off (PUDO) points.

Royal Mail launched its parcel locker network in 2024 in response to rapidly growing demand among shoppers, as well as rising numbers of second-hand marketplace sellers. The lockers are already live in six Sainsbury’s stores, with more rolling out in the coming months.

Circular retail: John Lewis expands repair services

John Lewis will expand its repair service to all UK stores, after completing a successful pilot in five stores last year. The service will continue to be run in partnership with Johnsons, which us owned by Timpson Group.

Now customers can drop off items – from fashion repairs and alterations to handbag restorations – at any local John Lewis store. The service will accept any brand, and will also offer loyalty members a 5% discount.

War on waste: Southern Co-op saves 3.1million meals from landfill

Southern Co-op has partnered with Retail Insight, implementing a data-driven solution to reduce food waste via dynamic markdowns.

The solution analyses numerous data points to calculate optimal discount prices and markdown times, helping reduce food waste while maximising sell-through. 

The partnership has prevented 3.1million meals from entering landfill and supports Southern Co-op’s sustainability goals of creating a “waste-free” future.

Retail Media: Superdrug deploys digital screens to boost RMN

Superdrug will roll out 500 digital screens across its UK store network, partnering with technology integrator, Aura Futures, and digital CMS provider, NowSignage. The high tech screens will serve customers tailor-made content, accelerating the retailer’s Retail Media Network (RMN), Optimo.

“Our aim is to make shopping more personalised and engaging for our customers,” Paul Stafford, Head of Retail Marketing at Superdrug, said. “[This] allows them to see relevant information, product news and offers when ‘in the moment’ and whilst browsing in store.”

Loyalty: 67% of retailers will up investment in digital loyalty

New data from Apadmi suggests over two thirds (67%) of retailers will increase investment in digital loyalty in the next 12 months. The study also found 81% of retailers viewed personalisation is a key part of their mobile customer engagement strategy, with a +10% rise in brands planning to increase personalisation efforts.

In a challenging trading environment, “retaining and engaging loyal customers is essential to safeguarding retention and revenue,” Apadmi’s Jake Sargent said.

Spend predictions: Shoppers to shell out £2.3billion on Easter

With 40% of UK shoppers intending to spend more on Easter this year, consumers are tipped to spend an estimated £2.3billion around the event, according to GlobalData. GlobalData’s research also suggested consumers plan to spend an average of £124.75 this year, a rise of £12.35 compared to 2024.

“The later date of Easter this year presents an extended opportunity for retailers to build momentum for the occasion,” GlobalData’s Aliyah Siddika commented.

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