Discounters continue to hit big four
Aldi and Lidl now account for 10% of supermarket sales
Discount supermarket chains Aldi and Lidl now account for a combined market share of 10% for the firs time, according to the latest grocery figures.
Aldi grew sales by 16.5% and now has a 5.6% share of the market, while Lidl sales were up 19%, taking its market share to a new high of 4.4%.
Tesco, Asda and Morrisons appear to have suffered most from the budget chains’ growth.
The figures from Kantar Worldpanel for the 12 weeks to 8 November showed Sainsbury’s was the only one of the ‘big four’ retailers to increase sales in the period – up by 1.5% – with its market share rising to 16.6%. Waitrose grew 2.7%, and the Co-operative 1.5%.
Despite recent cost-cutting measures and a new revival plan from chief executive Dave Lewis, Tesco fell 2.5%, and now has 27.9% of the market, while Asda was down 3.5% and Morrisons 1.7%.
Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel said: “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.
“Sainsbury’s performance means it has once again regained its position as Britain’s second largest supermarket, pushing ahead of Asda in the latest 12 weeks. The food-focused retailer traditionally increases its market share over Christmas, so we can expect to see it keep hold of second place for the time being.”
Information and insights company Nielsen, which also published data, said the major supermarkets experienced their biggest year-on-year fall in the value of sales for over a year, down 1.2% in the four weeks to 7 November while volume dropped 0.5%.
Nielsen’s UK head of retailer and business insight Mike Watkins said: “The rise of the discounters seems to have hit Tesco, Asda and Morrisons the hardest. Their combined market share over the last year is down 2.1%, the exact figure the discounters’ has risen.”
“Heavy price-cutting to combat the discounters, coupled with deflation, is great news for consumers but increasingly problematic for the supermarkets, who are seeing less money going through the tills.”