Connecting to LinkedIn...

Discounters dominate 10% of grocery market

W1siziisijiwmtuvmtevmtcvmtavndyvmtcvote3l1nhaw5zynvyexmgzmluywwuanbnil0swyjwiiwidgh1bwiilci2mdb4ndawxhuwmdnlil1d

Aldi and Lidl now account for a combined 10% share of the British grocery market. 

Both discounters have been steadily gaining ground over other established supermarkets for some time. The latest figures from Kantar Worldpanel show that Aldi’s market share now stands at 5.6%, and Lidl’s at 4.4%, whereas two years ago they only had 5% of the market between them. 

“In the last 12 weeks the two retailers have attracted another additional million shoppers compared with last year while average spend per trip has increased by 4% to £18.85, which is 78p ahead of the total retailer average,” said Kantar’s Head of Retail and Consumer Insight, Fraser McKevitt. “The discounters show no sign of stopping and with plans to open hundreds of stores between them, they’ll noticeably widen their reach to the British population. 

In addition to the lower prices offered by discounters, the general grocery environment too, is less than ideal for other big names. Sales in the 12 weeks to 8 November rose just 0.5%. Meanwhile, grocery deflation has continued. Prices dropped 1.7% in the same period, and the Big Four discounting wars are likely to continue. 

Still, it was not bad across the board. Sainsbury’s continued to defy the norms as the only big four grocer to experience growth in the last three months, enjoying a rise of 1.5% in what? Sales?. In contrast, Tesco and Asda saw spending fall 2.5% and 3.5% respectively, whilst Morrisons lost 1.7%. 

“Sainsbury’s has seen its fourth consecutive period of growth, flying in the face of tough market conditions,” McKevitt continued. “It’s 1.5% increase in sales was sufficiently ahead of the market for the retailer to increase its share by 0.2 percentage points – the first share gain registered by any of the ‘Big Four’ retailers since October 2014. 

Sainsbury’s performance means it has once again regained its position as Britain’s second largest supermarket, pushing ahead of Asda in the latest 12 weeks. The food-focused retailer traditionally increases its market share over Christmas, so we can expect to see it keep hold of second place for the time being.” 

Published on Tuesday 17 November by Philip Gallagher

Articles similar to Aldi

Articles similar to Lidl

comments powered by Disqus