Discounters Aldi and Lidl enjoy double digit sales growth in UK

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Aldi: double digit growth

Aldi: double digit growth

Discount retailers Aldi and Lidl are enjoying double digit sales growth, according to the latest grocery share figures from Kantar Worldpanel, published today for the 12 weeks ending 20 February 2011.

With sales up 13.4% and 13.6% respectively, they are outperforming the total grocery market – up 3.9% – by a strong margin. The gains have increased Aldi’s market share to 3.1%, up from 2.8% last year; and Lidl’s to 2.4%, up from 2.2%.

Among the top four grocers, Sainsbury’s (+5%) and Morrisons (+4.5%) outperformed the market.

As a result, Sainsbury’s market share increased to 16.5%, compared to 16.3% a year ago. The growth continues a strong run with Sainsbury’s gaining share every month since March 2009.

Morrisons maintains its 12.3% market share from the same period last year. Tesco and Asda performed slightly behind the market, with share now standing at 30.3% and 16.9% respectively.

Waitrose followed the market trend of slightly slower growth this period, but still posted increased sales of 6.6% compared to a year ago, taking its market share to 4.4%, the highest ever recorded by the retailer.

Fraser McKevitt, retail analyst at Kantar Worldpanel, said: “With economic uncertainty increasingly in the news it is no surprise shoppers are being cautious with their spending. However, while the discounters are performing well this is not due to an increase in new shoppers, but rather because their existing customers are spending more with them. The majority of people continued to seek value through promotions in the mainstream retailers, rather than trading down to the discounters.”

The Co-operative’s market share stabilised at 6.7% this month but has dipped from from 7.4% a year ago. Iceland’s market share remained at 2.0%. According to Kantar, the frozen foods retailer will find substantial market growth challenging in the next few months because of strong comparative numbers in 2010.