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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 |
(4 months later) | |
German discount chains outpace bigger rivals as they get £1 in every £8 spent in the UK | |
Sarah Butler | |
Tue 19 Sep 2017 13.10 BST | |
First published on Tue 19 Sep 2017 09.22 BST | |
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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. | 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 eat into families’ spare cash, prompting many 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 discounters are also rapidly opening new stores while traditional supermarkets have closed outlets amid the growing popularity of internet shopping. | The discounters are also rapidly opening new stores while traditional supermarkets have closed outlets amid the growing popularity of internet shopping. |
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. | 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. |
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. | 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. |
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. | 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. |
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. | 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. |
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. | 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. |
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%. | 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. | 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. Prepared salad fell 6%; scotch eggs and suncare products were down 16%. | 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. | 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. | 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. |
Supermarkets | |
Retail industry | |
Aldi | |
Lidl | |
Consumer spending | |
Household bills | |
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