Value supermarket chains Aldi and Lidl continue to remain on top in the grocery race, the latest figures from Kantar reveal.
Big four rivals Asda, which fell 4% in sales, and Morrisons, which slumped 3.2% in sales, were hurt the most in the 12 weeks to 28 February, while Tesco’s decline is starting to slow.
Sainsbury’s remains the only big four grocer experiencing growth. Total spend grew 0.5% in the period, fuelling its position as the UK’s second biggest supermarket.
“Tesco’s positive run continues as its overall sales fell by 0.8% – halving last month’s decline of 1.6 %,” comments Fraser McKevitt, Head of Retail and Consumer Insight at Kantar. “A renewed focus on price promotions has helped stem the flow of shoppers leaving the retailer despite the closure of around 50 stores in the last year.
Morrisons is also operating fewer stores than last year which continues to contribute to its falling sales – this month down by 3.2% with market share dipping to 10.6%. Online, Morrisons’ sales are growing strongly, a trend set to continue in the coming months as the retailer converts more existing in-store shoppers to its e-commerce channel.
Despite being a relative latecomer to online grocery, Morrisons’ forthcoming tie-up with Amazon could provide another boost to the business.”
German grocers Aldi and Lidl saw sales mushroom, as usual, up 15.1% and 18.9% respectively, accounting for 10% of the total supermarket spend in the UK.
“It is incredibly encouraging that we have maintained our position as Britain’s fastest growing supermarket for the sixth consecutive month,” said Lidl UK CEO Ronny Gottschlich. “We’re seeing more and more customers turn to Lidl for their regular shop as they continue to embrace our ‘best quality for the best price’ offering.
Sourcing two thirds of our products from the UK, we are passionate about supporting British producers and building strong relationships with our suppliers – something we know our customers value, too. And, combined with a buying network spanning centres of excellence across Europe, we have cultivated a business model that enables us to provide quality, authentic products for unbeatable value.”
The Co-operative also enjoyed those 12 weeks, with sales up 1.9%. Waitrose sales were up a mere 0.2%, although this was enough to allow the upmarket chain to maintain its 5.2% market share.