Financial News

  • 18 December 2013, 8:48

Aldi And Lidl: Half Of Brits Shop At Discounters

The squeeze on family budgets has seen more than half of British shoppers going to discount stores Aldi or Lidl in the last three months.

It comes as the big four supermarkets all lose market share, new figures have shown.

Aldi and Lidl have successfully broadened their customer base, with the former having a record 4% of the market and the latter retaining the 3.1% it reached during the summer.

Chris Longbottom, director at Kantar Worldpanel, said: "Value continues to be a powerful incentive for the British shopper, a fact that is further highlighted by Farmfoods which, while still a relatively small player in the market, has grown its sales by 36.6% compared with last year."

Some 50.1% of all British households stepped into a discount retailer in the 12 weeks to December 8, compared with 46.1% a year ago, researchers found, as wages grow at a slower pace than the annual rate of inflation.

Mr Longbottom added: "At the other end of the market Waitrose has performed strongly with 6.7% growth.

"Based on past patterns, it is likely to further boost its market share over the busy Christmas period, as is Iceland which traditionally performs well with its party food offering."

Among Tesco, Asda, Sainsbury's, Morrisons and the Co-operative, the best performer continued to be Sainsbury's although the year-on-year growth of 1.8% was insufficient to match the market growth of 2.8%, said Kantar Worldpanel.

Tesco accounted for 29.9% of sales in the latest period, Asda 16.9%, Sainsbury's 16.8% and Morrisons 11.6%.

The Tesco figure will add to concerns over the effectiveness of a turnaround plan that has seen over 1bn invested in its home market.

Earlier this month, the retailer reported a 1.3% fall in third quarter underlying UK sales.

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