Aldi And Lidl Now Account For 10% Of Grocery Market
Latest grocery share figures from Kantar Worldpanel for the 12 weeks ending 8 November show the combined share of the discounters Aldi and Lidl has reached 10% of the UK grocery market for the first time, whilst Sainsbury’s became the first big four supermarket to claim a market share increase for over a year. .
Lidl’s market share reached a new record high of 4.4%, increasing by 0.7 percentage points on last year thanks to a sales growth of 19%. Aldi grew sales by 16.5%, keeping its market share at 5.6% for the fifth consecutive month.
Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, commented: “If you look back as recently as 2012 Aldi and Lidl only held a 5% share of the market, and it had previously taken them nine years to double their combined share from 2.5%. In the last 12 weeks the two retailers have attracted another additional million shoppers compared with last year while average spend per trip has increased by 4% to £18.85, which is 78p ahead of the total retailer average. The discounters show no sign of stopping and with plans to open hundreds of stores between them, they’ll noticeably widen their reach to the British population.”
Meanwhile, despite the high-profile Christmas advertising campaigns launched by the supermarkets in recent weeks, the overall market remained slow. Total sales were only up by 0.5%, held back by persistently falling prices which remained down by 1.7% on a like-for-like basis.
Sainsbury’s was again the only one of the big four in growth, flying in the face of the tough market conditions. It’s 1.5% increase in sales was sufficiently ahead of the market for the retailer to increase its share by 0.2 percentage points – the first share gain registered by any of the big four retailers since October 2014.
Sainsbury’s robust performance means it has once again regained its position as the UK’s second largest supermarket, leapfrogging Asda. With its strong focus on food, the retailer traditionally increases its market share over Christmas, and Kantar Worldpanel expects to see it keep hold of second place for the time being.
The other major retailers continued to struggle with sales at Tesco down by 2.5% while Morrisons saw a fall of 1.7%. Asda saw a decline in sales of 3.5% with Kantar Worldpanel saying the chain will be hoping that its raft of recent announcements including a range reduction and increasing click & collect opportunities can boost performance in the weeks ahead.
Waitrose and the Co-operative both managed to grow sales during the period, up by 2.7% and 1.5% respectively. The Co-operative’s market share gain of 0.1 percentage points to 6.3% was its first year-on-year share gain since 2011, when the benefits of the Somerfield acquisition were still being felt.
RVS feel that this is a paradigm shift away from the middle ground of Asda, Morrisons Sainsbury and Tesco. Tesco have done most to address this by their clear focus on brands to which shoppers are loyal. Asda, with a focus on olely price, and much higher per square foot costs has few places to go. Both the Coop and Waitrose are further away from discounter competition. With the launch of the new Lidl “just like Waitrose” format perhaps their time is yet to come.