Lidl beats Waitrose in store wars

LIDL has overtaken Waitrose to become Britain’s seventh-biggest food store as families try to beat rising prices.

Sales at the budget chain leapt 18.9 per cent in the 12 weeks to August 13 compared to the same period last year.

And sales to families are growing 40 per cent faster, with bigger trolley loads, compared to those without children.

The increase is the result of a massive expansion programme with new outlets opening at the rate of one a week.

It is pushing deep into ‘Waitrose country’ by opening in county towns and exclusive areas of Chelsea, Notting Hill, Highgate and Mayfair. The rise of Lidl means its market share of 5.2 per cent is now just ahead of its ‘Middle Britain’ rival on 5.1 per cent.

Aldi, the UK’s fifth biggest supermarket with a 7 per cent market share, is seeing equally spectacular sales growth. Its takings grew by 17.2 per cent after attracting 1.1million more shoppers through its doors over the 12 weeks compared to a year ago. Both Lidl and Aldi have tried to attract middle- and highincome households by offering prestige spirits and wine at budget prices. At the same time, their own-label foods, often sourced from specialist British farms, have won awards in blind taste tests, giving them credibility.

Waitrose has responded to the threat by rethinking the role of a supermarket. This has involved opening wine bars, sushi bars and even upmarket restaurants.

Its sales were up by £214million over the 12 weeks compared to a year ago, which continues a record of growth dating back to March 2009 and allowed it to maintain its market share.

The figures come from Kantar Worldpanel. Its head of retailer and consumer insight, Fraser McKevitt, said: ‘Ten million households visited Lidl’s expanding network of stores during the past 12 weeks, with alcohol and fresh produce performing particularly well.’