Aldi increases UK sales by 25% and posts record market share, Kantar reveals

Aldi: record share

Aldi: record share

Discount retailer Aldi has increased sales 25.4% in the 12 weeks ending 13 May 2012 compared with the same period last year and posted a record market share of 2.8% as a result, according to the latest grocery share figures from Kantar Worldpanel.

Rival Lidl also holds on to its record 2.8% share from last period with 11.3% growth and Waitrose continues to outpace the market with 7.0% growth. 

Edward Garner, director at Kantar Worldpanel, said: “The ongoing strong performances of Aldi and Lidl have led some commentators to believe consumers are deserting conventional stores for the discount sector. However, a more realistic picture of shopper behaviour shows many consumers are continuing to do their main shopping trip in their usual store, but spending the remainder of their household budget on the discounters.”

Among the big four, Sainsbury’s holds on to its share while Tesco and Morrisons continue to feel the pressure. Asda remains strong with 6.5% growth, reflecting the addition of Netto stores, said Kantar.

The stubbornly high level of food price inflation means shoppers continue to feel the squeeze on their household budgets, however.

Overall, the latest figures show the market is growing at 3.1%. This is a sharp decrease on the 5.0% growth reported last period. And, in the four weeks ending 13 May 2012, the grocery market actually declined by 1.0%. 

Garner again: “On the face of it, the declines in market growth might seem alarming but there are exceptional factors. Easter and the Royal Wedding helped year-on-year growth soar to a remarkable 7.6% in the four weeks leading up to 15 May 2011 – a hint of what’s to come over the Jubilee weekend. Comparing the current figures with the same period two years ago, the four week growth stands at 6.5%. This is actually in line with long-term trends and shows 2011 as the anomaly.”