Major Restructures and Job Cuts Across UK Supermarkets
2025 is turning out to be a massive year of change for UK supermarkets. Sainsbury’s made headlines after announcing it will close 61 of its in-store cafés and retire its last patisserie, hot food, and pizza counters. These moves are expected to slash over 3,000 jobs. Boss Simon Roberts didn’t mince words, citing a ‘particularly challenging cost environment’ and stressing the need to keep stores competitive. Rather than lose popular items altogether, Sainsbury’s is rethinking how these foods are offered, moving them onto regular aisles for more grab-and-go appeal.
Asda isn’t sitting still, either. The retailer is shrinking its number of regional managers by consolidating sub-regions from 30 to 22, cutting 13 management positions along the way. Chairman Allan Leighton put it bluntly: the company has a ‘long road ahead’ as it works toward stabilizing both leadership and operations in a changing market.
Store Expansions and Investments: M&S Goes Big
While layoffs hit some chains hard, other stores are going all-in on expansion. M&S is splashing out £140 million to open new foodhalls across London and the Northwest. Fancy new locations in Clapham, Covent Garden, and Leytonstone are just the start. Inside, shoppers will find big improvements: fresh produce sections revamped, bakeries expanded, and chilled product zones redesigned for easier shopping. Will Smith, in charge of M&S property, calls it a shift to ‘market-leading stores’ aimed squarely at grabbing more customers and making shopping more enjoyable.
Meanwhile, Tesco and Costco are showing strong gains in market share. Tesco has boosted its consumer preference to a jaw-dropping 54.3%, holding its spot as a household staple. Costco, often seen as the go-to for bulk buys, edged up 0.9 percentage points, now sitting at 6.5%. Their staying power contrasts sharply with the turbulence felt elsewhere, signaling stability matters to UK shoppers.
As supermarkets juggle cost pressures, they’re not just looking inward—consumer trends are driving change, too. Loyalty to supermarkets’ own brands is slipping; only 25.6% of shoppers say they’d stick to store brands if price weren’t a factor. Digging deeper, younger Gen Z shoppers (ages 18-24) are turning most often to Tesco (37.6%) and discounter Lidl (17.4%), reflecting a blend of price awareness and perceived value.
Perhaps more eye-opening, food waste is now top of mind for 31.6% of shoppers—ranking higher than plastics or even climate change. This push for waste reduction is shaping product selection and store offerings. For premium service, M&S leads the pack in customer satisfaction with a 79% approval score, even with higher prices. Tesco and Asda trail but hold strong, suggesting British shoppers still weigh experience heavily against cost.
All told, Britain’s supermarket sector is in flux. Job cuts, multimillion-pound expansions, and evolving shopper priorities signal a future where success depends on adaptation, with every chain watching the next move of its customers as closely as the competition.
