// Aldi and Lidl’s growth has been hampered as UK shoppers buy based on more than price, according to ex-Sainsbury’s boss Justin King
// King believes the discounters will hold a “mid-to-high-teens” percentage market share by 2030
Discounters Aldi and Lidl hold a smaller UK market share than the Big Four as UK shoppers don’t choose where to do their weekly shop based simply on price, said former Sainsbury’s chief executive Justin King.
The ex-supermarket boss told the Full & Frank podcast: “I can remember around 2010, the centre of gravity of most analysts was that discounters would probably have 25% of market share by 2020
“They [Aldi and Lidl] today enjoy 12 or 13 % between the two of them. That’s very significant because it’s grown from a small percentage but is nowhere near as significant as many predicted.”
King, who is also a non-executive at M&S, explained that consumers’ perception of value for money is more complex than just price tag and insisted that elements such as quality, level of service, business ethics, and even the safety levels of a supermarket’s car park are all taken into account.
READ MORE: Aldi beats Lidl to be crowned cheapest supermarket of the year
Despite the fact that Aldi and Lidl’s market share will continue to grow, King predicted that the pair would not becoming the most dominant supermarkets in the UK any time soon.
”To some extent, you can backsolve what they may or may not achieve from the number of stores they’ve announced they’re going to open,” he said.
“That still leaves me believing that a mid-to-high-teens percentage market share is the likely outcome if you take, say a 2030 view.”
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4 Comments. Leave new
Yeah, no.
Aldi and Lidl market share will explode over the next year or so as pandemic concerns ebb and the rampant inflation hitting consumers (alongside rate rises) forces them to look for savings in the household budget. Ocado and the majors have benefited from covid-19 as discounter stores are smaller and more crowded.
Consumer sentiment is tanking and will get much worse as house prices start to fall on higher mortgage costs.
With huge swathes of retail space vacant post pandemic the discounters have a free run to grab wads of market share if they want it.
If Aldi and Lidl had lightly bigger stores had a bit more choice, I could get everything I wanted and the checkout experience was like the main 4 big stores I would shop there all the time. Its a nightmare and so stressful going through the checkout even with two of you ! I just do not get the checkout rules and layout ?
despite what people think, Aldi and Lidl might be on the same wavelength but neither of them can be compared to M&S, there’s no comparison whatsoever, i think people think because it’s cheaper it’s better and they are swayed by the price and convince themselves it’s the same when it obviously isn’t…..
I would like to wake up snobby Mr King and some commenters that up to 80% of the UK population are struggling now financially because of inflation and salary levels are left in 2010s. So, majority will vote with their few pounds been spent in Aldi and Lidl as their quality is more than adequate and often identical to Tesco and Sainsbury’s. I predict these two will grow more than a quarter of the entire food market by 2030.
Wake up to the reality, rich and snobby Mr King. People are fighting for survival,so forget about quality and selection.