By Ben Sillitoe - 12:25PM - Tue 29th March 2011
Value retailers such as Aldi and Lidl drove sluggish grocery market growth in the 12 weeks to March 20th 2011 as the industry’s overall till roll increased just 2.4 per cent year-on-year, according to the latest Kantar Worldpanel data
Aldi expanded its share of the market from 2.8 to 3.1 per cent over the course of the year, while Lidl increased its piece of the grocery pie from 2.3 to 2.5 per cent during the same period - the largest percentage of grocery sales it has ever held.
Iceland and Farm Foods, which specialise in frozen foods, also saw sales grow significantly year-on-year, increasing till rolls by 4.2 and 11.7 per cent respectively.
Kantar revealed last month that overall grocery growth was at 3.9 per cent in the 12 weeks to February 20th, and March’s slowdown and strong performance from value retailers is reminiscent of trends reported in 2008 at the early stages of the global financial crisis.
Edward Garner, Communications Director at Kantar Worldpanel, said: “While there are no signs yet of the explosive growth in economy own-label ranges that we saw in 2008, there are now clear indications that value-for-money is driving retailer performance.”
Commenting on the performance of Aldi and Lidl, he added: “Both performances are being driven by existing shoppers spending more, rather than by new shoppers visiting the stores.”
Tesco still dominates the grocery market but, like its closest competitor Asda, it saw market share slip 0.1 per cent during the 12-week period.
Waitrose increased its market share to 4.3 per cent, aided by new store openings in a number of new locations, while Sainsbury’s and Morrisons continue to take the chase to Asda by increasing trading by 3.1 per cent each compared to the Walmart-owned company’s 2.1 per cent sales growth.
Kantar also indicated that grocery inflation stood at four per cent for the 12-week period, and is now above grocery market growth for the first time since mid-2009.