88 per cent of GMB members in Skelton voted, with 86 per cent supporting strike action.

This is understood to be the sixth consultative ballot carried out across Asda stores in recent months, GMB said 88% of its members in Skelton voted. A formal strike ballot will now open today (15 August) and close on 9 September.

The union said that any industrial action would take place later in September.

GMB organiser Louise Race said: “The strength of this mandate shows that Skelton workers, like other Asda colleagues around the country, want to see union recognition and equal pay for Asda retail workers.”

An Asda spokesperson said: “In Skelton, the GMB have not raised any specific issues with store management. We value feedback from our colleagues and will continue to work with all our colleagues in Skelton, including the GMB, on any store-specific matters.”

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It comes as GMB is set to take its equal pay claim against Asda to the High Court on 9 September.

The spokesperson said: “At Asda male and female colleagues doing the same jobs in stores are paid the same and this is equally true in our distribution centres. We continue to defend these claims because retail and distribution are very different sectors, with their own distinct skill sets and rates of pay.”

The grocery retailer has been hit with a wave of industrial action over pay and working conditions in recent months. Five stores have faced strikes: Brighton Marina, Brighton Hollingbury, Wisbech, Lowestoft, and Gosport.

It comes as fresh data showed that Asda sales plunged 6% in the 12 weeks to 4 August. The Kantar data showed that the supermarket’s market share has plummeted from 13.7% to 12.6% over the past year.

Asda has been contacted for comment.

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The supermarket, which first teamed up with the delivery platform in 2020, has the service running in around 390 of its big stores and now, 500 of its convenience stores.

The expansion means that more consumers will now be able to order from a range of 2,500 fresh, frozen and ambient items.

Morrisons convenience, online and wholesale director Joseph Sutton said: “Our partnership with Deliveroo has gone from strength to strength since we first started working together in 2020.

“Customers tell us how important rapid delivery services are to them and so we’re delighted to be extending the Deliveroo service and making it available from 500 of our Morrisons Daily stores.”

Deliveroo vice president of grocery and retailer Suzy McClintock added: “We are thrilled to continue bringing more of Morrisons’ fantastic range straight to our customers’ homes, including price matching to in store prices on some of the most popular items, making everyday life a little easier.”

The supermarket has around 1,600 Morrisons Daily convenience stores nationwide, of which circa 600 are franchise stores.

It is understood that the grocery chain is looking to expand its convenience footprint to 2,000 shops across the UK in a bid to take on rivals Aldi and Lidl as it pushes ahead with its convenience growth plans.

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Shoppers will be able to use the service for the last time on 18 August, The Grocer reported.

The discounter’s click-and-collect option saw staff members bring customers their online shopping order in the store’s car park for a fee of £4.99.

The grocery giant said scrapping the trial, which had been under review since its launch, would help it run its stores more efficiently and maintain a price advantage over its competitors.

A spokesman for the supermarket told the publication: “At Aldi, our focus is on providing customers with high-quality products at the lowest possible prices.

“One of the ways we keep our prices low for customers is by running the most efficient supermarket business in Britain. As a result, we’ve made the decision to bring our click-and-collect service to an end so we can focus on doing just that.”

Last year, Aldi scrapped its home delivery of alcohol and Specialbuys, after rolling out the service in 2015. In 2022, it also ended its grocery delivery partnership with Deliveroo.

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According to fresh data from Kantar, Sainsbury’s market share jumped from 14.8% last year to 15.3% for the 12 weeks to 4 August, as it maintained its streak of being the fastest growing traditional supermarket. Its sales rose 5.2% over the period.

Meanwhile, Asda sales plunged 6%, as its market share fell from 13.7% to 12.6%, the market research firm reported.

Tesco maintained its streak of winning share every month since August 2023, with its hold of the market climbing to 27.6%.

Additionally, sales were up 11.3% at Ocado, as the online grocer continued its 6-month run as the fastest growing supermarket.

Across the wider market, grocery inflation rose to 1.8% from 1.6% last month, marking its first increase since March 2023.

Kantar head of retail and consumer insight Fraser McKevitt noted: “Having reached its lowest rate in almost three years in July, August saw inflation nudge up again slightly.

“While this is noticeable following 17 straight months of falling rates, it actually marks a return to the average levels seen in the five years before the start of the cost of living crisis.”

He added: “It is a mixed picture on supermarket shelves with prices now rising across 182 product categories, as the costs in 89 others fall.

“With this kind of pricing spread, shoppers will find that the type of product they’re putting in their baskets will really dictate how much they pay.”

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The upmarket grocer said the store on Finchley Road, in the former John Barnes department store, opens on 21 August and will have a number of new and refreshed features including a fully updated refrigeration system, a new look and feel bakery, and the first fully chilled beer, wine and spirits department.

It will also feature a dedicated made-in-branch baguette station, a hot chicken and salad counter, as well as a dedicated parmesan bay.

Waitrose said the John Barnes store will also be the first to boast a dedicated hot wok counter that will serve ready-to-go meals to customers.

The supermarket chain said the store will act as a trail for its new concepts and follows on from the opening of its Sudbury store in Suffolk, which has been testing a new store format since earlier this year.

It forms part of a £1bn investment from the John Lewis Partnership-owned business to refurbish 80 of its existing supermarkets.

To celebrate the opening, Waitrose has several in-store brand activations, with doughnut brand Crosstown giving out samples of Waitrose exclusive flavours including Matcha and White Chocolate filled doughnuts and Dark Chocolate Truffle filled doughnuts.

Daily Dose, Dash Water and Cadbury’s will also be there on opening day handing out complimentary samples.

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The grocery giant said it would give customers more information on each garment in its F&F fashion collection, including where the materials in each product have been sourced from, The Telegraph reported.

The move comes as Brussels works to improve supply chain transparency by launching new rules where businesses across the euro area are required to bring out digital product passports (DPPs).

Under the rules, which are set to be rolled out over different industries during the next eight years, companies will need to give shoppers detailed information on the materials used in their goods and their environmental impact.

Alongside the scheme, new requirements on how retailers manage their stock, including a ban on destroying unsold clothes, are being implemented. Firms that fail to follow the rules will receive fines and may be barred from selling products across the EU.

Tesco head of technical Joe Little told the newspaper: “DPPs represent an important step forward, encouraging and promoting sustainable and circular practices.”

In March, M&S-backed Nobody’s Child launched digital product passports in a bid to “underscore the brand’s commitment to elevating transparency, championing sustainable values and fostering a deeper connection with their conscious community”.

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The supermarket last week posted a 5.3% like-for-like sales fall in its second quarter, and its market share has fallen from 14.8% when the Issa brothers purchased the chain in 2021 to 12.7% last month.

Lord Rose told The Telegraph: “I am going to be perfectly honest with you. I’ve been in this industry for a long time and I am slightly embarrassed. I won’t deny that.

“I don’t like being second, third or fourth. And if you look honestly now at the comparative numbers of Kantar or whatever index, we are not performing as well as should be. And I don’t like that.”

Rose urged Issa to step back from the day-to-day running of Asda. The former M&S boss said: “I wouldn’t encourage him to [intervene in operations], and I am the chairman.”

Rose, who plans to take on a more active role at Asda while it looks for a new full-time CEO, continued: “We need a full-time, fully experienced retail executive to come in.

“We always said Mohsin was a particular horse for a particular course. He is a disrupter, an entrepreneur, he is an agitator.”

“We’ve added a significant number of stores and we’ve changed a lot but it now needs a different animal. In the nicest possible way, Mohsin’s work is largely complete.”

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The group saw like-for-like sales decline 5.3% for the quarter ended 30 June, with the supermarket setting out plans to deliver an “enhanced and more consistent in-store experience” for shoppers during its second half.

The grocer’s chief financial officer Michael Gleeson says: “We have made great progress over the last few years in transforming Asda into a diversified retail group, much of which is almost complete. 

“However, we also know that there are some areas where we can and need to improve.” 

Retail Gazette looks at where Asda is placing its efforts to revive sales and regain market share.

1. Customer satisfaction

Firstly, Asda is investing an extra £30m into staff hours to strengthen its customer proposition.

The retailer hopes the move will improve its replenishment of stock during store opening hours. It also wants to increase the number of workers on checkouts over the weekends, and provide a more effective cleaning programme in stores.

Gleeson explains: “What we’re not doing is changing the mix of manned checkouts, scan and go, and self-checkouts. We’ll simply be manning more of the already available manned checkouts for longer.

“It’s improving service for those who choose to use the manned checkouts.”

2. Enhanced product availability

Asda will also invest in enhancing availability across all of its categories for the remainder of its second half, including across its 1,000 core grocery lines which it said were most important to customers.

The supermarket expects to deliver material efficiencies to make replenishment processes easier and to allow more deliveries to be put straight on shelves.

Gleeson says: “We will increase our focus on and invest in enhancing availability across all categories” 

3. A renewed trading plan

Lastly, Asda vowed to deliver a renewed trading plan for the rest of its second half, with a key focus on on driving increased use of its Asda Rewards loyalty app, which just two years after launch, make up 52% of all transactions.

Gleeson says: “We will deliver a renewed trade plan, building in the remainder of half two on the great success of Asda Rewards.

“In its short life, we now achieve more than 50% of our sales on Asda Rewards.”

The loyalty scheme now has more than six million regular users, with participation rising on a quarterly basis.

Is the supermarket taking the right tack to win over shoppers?

GlobalData associate retail director Sofie Willmott says: “Asda is focused on major technology improvements across the board covering customer-facing areas like self-checkouts and scan and go devices, as well as back-end processes within its distribution centres and in its payroll software.

“No doubt this will bring benefits and cost savings in the long term but while it has taken its eye off its core product offer, distracted by these projects as well as buying EG Group and a number of Co-op stores, its competitors have been laser-focused on food at a time when consumers have been extremely budget-conscious and willing to switch.”

She adds: “Asda must focus on ensuring its core food offer is compelling and fight to win back shoppers as a priority over complementary areas that although are important in the long run, are less of a driver than value for money.”

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Total sales excluding fuel dropped 2.2% for the three months ended 30 June, with like-for-like sales declining 5.3%, as the grocery giant pushed ahead with what it termed its “unprecedented transformation”, the largest in its history.

The retailer plans to improve shopper experience by investing £50m into store upgrades, which it kicked off at the end of May.

It has already started to refresh 130 of 170 stores earmarked for investment.

Asda will focus on three key priorities: customer satisfaction, enhanced product availability, and a renewed trading plan.

It plans to boost availability in stores, including on 1,000 core grocery lines, and will make replenishment processes easier, allowing more deliveries to be put straight onto shelf.

The supermarket is also investing an additional £30m in staff hours to improve stock replenishment during opening hours in store, increase the number of staff on checkouts at the weekend, and ensure stores are clean.

A renewed trading plan for the remainder of the year will look to drive increased use of its Asda Rewards loyalty app, which just two years after launch, make up 52% of all transactions.

Asda chief financial officer Michael Gleeson said: “We have made great progress over the last few years in transforming Asda into a diversified retail group, much of which is almost complete.

“However, we also know that there are some areas where we can and need to improve.”

“We have today set out clear and decisive action to deliver a more consistent customer experience – to match the uncompromising value we offer.

“We remain confident in the underlying strength of the Asda business as we execute our long-term growth strategy.”

Over the second quarter, Asda’s online sales improved, with George.com revenues rising almost 4% and online grocery up 1.4%.

It also had its best ever start to a George back-to-school campaign, with store sales up 88% from last year in the first two weeks of the campaign.

Asda co-owner Mohsin Issa said: “As we move forward, we remain committed to maintaining our value credentials, enhancing the product offer, and executing our long-term growth strategy to build an even stronger Asda for our customers and communities.”

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The new contract builds on its existing 30-year relationship and will see the logistics firm continue to supply nearly 350 of the retailer’s stores across the Midlands, South East and East of England, delivering upwards of 750,000 cases per week, including chilled, ambient and frozen goods.

Wincanton will continue to provide facilities management and distribution services from a 340,000 sq ft Co-op regional distribution centre in Wellingborough, Northamptonshire, which it has managed since 2019. Over 600 colleagues will continue to support the contract.

Co-op director of logistics Ian Gibb said: “Working closely with our partners, our depots play a vital role in ensuring that Co-op products are freshly delivered and conveniently available in towns, villages and cities across the UK – when and where our member-owners and customers shop with us.”

Wincanton managing director of grocery and consumer James Hurrell said: “We are delighted to extend our long-standing relationship with Co-op and look forward to continuing to provide outstanding service, which we’re seeking to enhance even further.”

The retailer revealed plans to acquire new stores earlier this year, as it seeks to more than double the number of new franchise locations, and open 400 new Nisa shops.

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