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Aldi and Lidl increase share of British shoppers as inflation hits spending Aldi and Lidl increase share of British shoppers as inflation hits spending
(about 2 hours later)
Aldi and Lidl now account for £1 in every £8 spent in UK supermarkets, with two-thirds of British shoppers visiting the discounters over the last three months. Aldi and Lidl account for £1 in every £8 spent in UK supermarkets, with two-thirds of British shoppers visiting the discounters over the past three months.
The German chains are outpacing their bigger rivals as inflation and stagnating wages continue to eat into families’ spare cash, prompting them to seek ways of saving money. The German chains are outpacing their bigger rivals as inflation and stagnating wages eat into families’ spare cash, prompting many to seek ways of saving money.
The chains are also rapidly opening new stores while traditional supermarkets have closed outlets as their biggest out-of-town stores have proved less popular when it’s possible to buy a weekly shop online or save money by picking up fresh goods at local stores only when required. The discounters are also rapidly opening new stores while traditional supermarkets have closed outlets amid the growing popularity of internet shopping.
Lidl was the UK’s fastest growing grocery chain in the three months to 10 September, when sales increased 19.2%, taking its market share to a new high of 5.3%, according to the latest figures from Kantar Worldpanel. It achieved strong sales of fresh and chilled goods including dairy, white and rosé wine. Ocado, the online supermarket, notched up a 14.3% rise in sales to £344.5m in the three months to 27 August. The company’s share price slid 1.6% as it revealed that growth was accompanied by the rising cost of building infrastructure to deliver its goods while the average size of customer orders had slipped back.
Despite the strong growth, seasonal fluctuations in trade mean it is now back on a par with Waitrose, where sales rose 2.4%, after overtaking the chain last month. Lidl was the UK’s fastest growing grocery chain in the three months to 10 September. Its sales increased 19.2%, taking its market share to a new high of 5.3%, according to the latest figures from Kantar Worldpanel. It achieved strong sales of fresh and chilled goods including dairy, white and rosé wine.
Aldi’s sales rose 15.6% taking its market share to 6.9%, widening its lead on the Co-op, where sales fell back for the second month in a row. Despite the strong growth, seasonal fluctuations in trade mean it is back on a par with Waitrose, where sales rose 2.4%, after overtaking the chain last month.
In the past three months almost 63% of shoppers visited one of the discounters, up from 58.5% last year. Their market has risen to 12.2%, a surge from less than 10% only two years ago. Aldi’s sales gained 15.6%, taking its market share to 6.9%. The grocer has widened its lead on the Co-op, where sales fell for the second month in a row after it sold 300 small stores to McColl’s.
All the major grocery chains are benefiting as food price inflation, which emerged in January this year after more than two years of price falls, remains above 3%. Prices rose 3.2% in the period, partly as a result of the fall in the pound since the Brexit vote. The volume of goods sold also rose, increasing total market sales by 3.6%. In the past three months, almost 63% of shoppers visited one of the discounters, up from 58.5% last year. Their market share has risen to 12.2%, a surge from less than 10% only two years ago.
It is the sixth consecutive month in which sales have risen by more than 3% with all four of the major supermarket chains – Tesco, Sainsbury’s, Asda and Morrisons – booking an uptick in business. All the large grocery chains are benefiting as food price inflation, which emerged in January after more than two years of price falls, remains above 3%. Prices rose 3.2% in the period, partly as a result of the fall in the pound since the Brexit vote. The volume of goods sold also rose, increasing total market sales by 3.6%.
It is the sixth consecutive month in which sales have risen by more than 3%, with all four of the large supermarket chains – Tesco, Sainsbury’s, Asda and Morrisons – reporting an increase in business.
Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “We haven’t seen sustained market growth of this kind since May 2013.”Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “We haven’t seen sustained market growth of this kind since May 2013.”
The growth came despite disappointing August weather which hit sales of traditional summer foods. Sales of prepared salad fell 6% while both scotch eggs and sun care were down 16%. In contrast the public spent almost £4m on cold treatments in August – an increase of almost £2m on that spent in the same month last year. The growth came despite disappointing August weather, which hit sales of traditional summer foods. Prepared salad fell 6%; scotch eggs and suncare products were down 16%.
However, shoppers spent almost £4m on cold and flu remedies in August – an increase of almost £2m on the same month last year.
Tighter budgets have also spurred consumers to buy fewer big brands. Spending on supermarket own-label products such as Tesco Finest and Sainsbury’s Taste the Difference rose 5.5% year on year in the three months to 9 September, according to analysts at Nielsen.