Tesco is reported to be considering a bid for Northern Rock, the bank that was nationalised last year after running into liquidity problems stemming from the sub-prime mortgage crisis. The Times reports today that the government is in favour of a sale of the bank, which was nationalised to save it from collapse.  

Instore is to convert all of its stores back to the Poundstretcher fascia after posting a full-year pre-tax loss of £5.8m. Reporting a 0.3% drop in sales and a 0.8% fall in like-for-like sales for the year to 28 February, chief executive Aziz Tayub said attempts to move the business to a more mid-market position had proved "flawed".

Marks & Spencer is expected to report that food sales fell by 1.5% in the past three months - representing an improvement on the 5% drop recorded in its previous annual results. The group suggested promotions on food had led to the improved performance, although total sales are expected to have declined 4% over the period.

Britain's supermarkets are using the property crash to seize sites for new stores in a land grab that could redefine the retail sector for years to come. The move will consolidate the supermarkets' stranglehold over the retail sector and alarm MPs, small businesses and green groups.Tesco and Asda, the biggest retailers, are committed to opening 2.5m sq ft of new space this year, while Sainsbury's wants to add 2.5m sq ft - 15% of its floorspace - by March 2011. Morrisons is on track to open 1m sq ft by January 2011. But the Observer has learned that all the major supermarkets are scouring retail parks where tenants have gone out of business, and buying empty high-street shops and pubs for new stores. Sainsbury's said recently it was raising £450m to buy distressed development sites. More on this story

Tesco is expanding its personal finances arm through a new motor and household insurance deal with Belgian-Dutch group Fortis. The new arrangement will create up to 1,500 jobs in the UK if the terms are agreed, although it would herald the end of Tesco's current partnership with UKI Partnerships, which is owned by the Royal Bank of Scotland. The insurance business that will be transferred to Fortis will consist of motor and insurance premiums worth £500m a year and Andrew Higginson, chief executive of Tesco's Retailing Services division, described the deal as an "important strategic move in the development" of Tesco Personal Finance (TPF).

Sainsbury's has this week launched a new section on its website as it seeks to ramp up customer interaction with the brand. The new section, called Trynation, features step-by-step video recipes. The site uses recipes featured on TV ads and from recipe tip cards that are available in stores. Sainsbury's backed the launch with its latest Jamie Oliver ad, unveiled this week as part of its "Feed your family for a fiver" campaign. The ad shows Oliver leading a cooking demonstration with Sainsbury's food experts, known as the Try Team, as they cook a British burger.

Tesco has introduced some classic British favourites such as Marmite and Heinz baked beans at selected Fresh & Easy stores in the US. Popular products including Heinz salad cream and Colman's mustard are being stocked at some stores such as Phoenix. The British products will form part of 1,000 new lines being introduced to Fresh & Easy.

Morrisons has teamed up with the Scottish Agricultural College to open a farm at Dumfries House in East Ayrshire. The Morrisons Farm will rear traditional cattle and sheep breeds. The first livestock - which will arrive later this year - will be Shorthorn and Angus cattle. Some arable crops will also be grown for animal feed.