Discount grocers gain share in tough climate

DISCOUNTERS Aldi and Lidl have together achieved their fastest year-on-year growth in sales since January 2015 in the latest 12-week period, notching up their highest-ever combined market share of 12 per cent.

Market researcher Kantar Worldpanel’s latest survey of the grocery market in Great Britain also highlights mounting inflationary pressures. It puts annual grocery price inflation at 2.9 per cent over the 12 weeks to May 21.

The combined sales of Aldi and Lidl in the 12 weeks to May 21 were up by 19.2 per cent on the same period of last year, Kantar’s figures show.

Aldi, the fifth-biggest grocer by sales, achieved a 19.8 per cent year-on-year rise in the 12 weeks to May 21, and had a seven per cent market share. This is up from six per cent in the same period of last year.

Lidl, in eighth spot, recorded an 18.3 per cent year-on-year rise in sales in the 12 weeks to May 21, and had a market share of five per cent. This is up from 4.4 per cent a year earlier.

Kantar noted that 62 per cent of the UK population shopped in an Aldi or Lidl during the past 12 weeks to May 21, up from 58 per cent at the same time last year, meaning an additional 1.1 million households had visited either of these stores.

Tesco, Sainsbury’s, Asda and Morrisons achieved respective year-on-year sales rises of 1.8 per cent, 1.7 per cent, 0.9 per cent, and 1.9 per cent over the 12-week period.

Chris Hayward, consumer specialist at Kantar, said: “Consumers are starting to feel the pinch as prices continue to rise, with the average household spending an additional £27 on groceries during the past 12 weeks.”