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Discount grocers grow market share again


German-owned discount grocers Aldi and Lidl increased their market shares in the 12 weeks ending April 17th, according to the latest Kantar Worldpanel data.

The two companies grew at a faster rate than any other food stores during the period, increasing year-on-year sales by 15 and 14.7 per cent respectively, and reaching all-time record market shares of 3.3 and 2.6 per cent.

Edward Garner, Communications Director at Kantar Worldpanel, said that Aldi and Lidl’s progress has been fuelled by existing shoppers increasing their shopping bills, rather than new shoppers heading to their stores.

“While the discounters are performing well this trend is not a re-run of 2008 when new shoppers turned to these outlets in response to the recession and nine per cent food price inflation,” he explained.

“In comparison to other major outlets, Aldi and Lidl’s basket sizes remain relatively small, but there is no doubt that these two retailers are now taking a larger portion of shoppers’ spending.”

With the overall grocery market expanding 3.6 per cent year-on-year, Morrisons was the only top four supermarket to outgrow the industry.

The Bradford-based retailer’s sales were up by four per cent compared to the same period one year before and it now holds an 11.9 per cent portion of the grocery pie.

Garner continued: “Last period, the grocery growth rate plunged from 3.9 to 2.6 per cent, suggesting that shoppers’ purses had snapped shut.

“This period, growth has recovered somewhat to 3.6 per cent - part of the reason for this is the late timing of Easter in 2011.

“Seasonal products such as flowers, hot-cross buns, lamb and, of course, Easter eggs all showed sharp decreases over the same period last year as Easter was much earlier.

“However, this year there may well be a degree of catch-up taking place as Easter markets peak later.”

Published on Wednesday 27 April by Editorial Assistant

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