Lidl and Aldi record share
LIDL and Aldi have grabbed a record 12 per cent share of Britain’s grocery market as household budgets come under pressure from rising food prices.
The German rivals outpaced the “big four” players – Tesco, Sainsbury’s Asda and Morrisons – as new data showed industry sales growing at their fastest rate since June 2014, up 2.3 per cent in the 12 weeks to February 26 compared with last year.
Analysis by Kantar Worldpanel showed inflation had doubled since last month to stand at 1.4 per cent, with items such as butter, tea and fish rising by more than 5 per cent, as a weaker pound makes imported goods more expensive.
Kantar’s Fraser McKevitt said the big four remained a “force to be reckoned with”, with Morrisons delivering 2.6 per cent higher sales for its fastest growth for five years, while Tesco boosted takings for the sixth period in a row.
Its report showed Lidl and Aldi’s sales growth running neck-and-neck at about 13 per cent, while a study by Nielsen said the pair’s combined share had climbed to 12.3 per cent, representing nearly £1 in every £8 spent on groceries.
Nielsen’s UK head of business insight, Mike Watkins, said: “Aldi and Lidl aren’t solely associated with low-priced brands, having been very astute at promoting the quality and price of their privatelabel range to appeal to a wider array of shoppers.”
Matthew Barnes, Aldi’s UK chief executive, said: “Rising food price inflation is becoming a real concern for customers and we expect it to sharpen consumers’ minds on the value of their grocery bills this year.”
Lidl’s UK boss, Christian Härtnagel, said: “We’re seeing more and more customers turn to Lidl for their regular shop as they continue to embrace our ‘big on quality, Lidl on price’ offering. Sourcing 70 per cent of our products from the UK, we are passionate about supporting British producers and building strong relationships with our suppliers.”
Jefferies analyst James Grzinic said: “A big acceleration in discounters’ growth appears to confirm a change in behaviour by a more pressured consumer.”