Asda faces broad-based performance challenges in both online and in-store channels, though the Ocado partnership provides a strategic opportunity for digital recovery. Meanwhile, market pricing analysis shows Sainsbury's losing ground to Morrisons while Tesco maintains strong entry-level price competitiveness.
Key Takeaways
- 1.Asda's online sales penetration and loyalty program participation continue to decline, signaling a broad-based recovery challenge.
- 2.The Ocado OSP partnership offers a potential recovery path for Asda's online grocery business through 2027.
- 3.Sainsbury's price competitiveness has weakened, with pricing trackers placing them behind Morrisons in the 'Big 4' ranking.
Table of Contents
- Asda and Ocado implications; updated pricing trackers show Sainsbury's dropping to third place behind Morrisons
- UK food basket analysis: Basket gaps still range-bound, Sainsbury's drops to third behind Morrisons
- Food PPI continues to roll over; supermarkets continue to inflate below restaurants
- UK grocery market share trends
- Valuation and risks
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Authors
Richard EdwardsBen WilliamsHamish Bogdan
Securities
TSCO.LSBRY.LOCDO.LMKS
Themes
Retail TurnaroundPricing CompetitivenessFood Affordability
Regions
UKUnited Kingdom