Discount retailers Aldi and Lidl have rung up record market shares in the UK, according to the latest grocery share figures from Kantar Worldpanel, published today for the 12 weeks ending 17 April 2011.
The German-owned Aldi and Lidl chains have lead market growth this period with year-on-year sales increases of 15% and 14.7% respectively. This translated to all-time record market shares of 3.3% for Aldi and 2.6% for Lidl.
Edward Garner, communications director at Kantar Worldpanel, said: “While the discounters are performing well, this trend is not a re-run of 2008 when new shoppers turned to these outlets in response to the recession and 9% food price inflation. Currently, discounter growth is fueled by existing shoppers sharply increasing their spending levels.
“Compared to other major outlets, Aldi and Lidl’s basket sizes remain relatively small, but there is no doubt these two retailers are now taking a larger portion of shoppers’ spending,” said Garner.
At the opposite end of the spectrum, premium supermarket Waitrose posted the next highest grocery growth – +7.7% – providing further evidence not everyone is responding to economic pressures in the same way.
Major share growth remains elusive for the top four retailers this period, however, with only Morrisons outperforming the market to lift share from to 11.9% from 11.8% 12 months ago.
Garner said: “Last period, the grocery growth rate plunged from 3.9% to 2.6%, suggesting shoppers’ purses had snapped shut. This period, growth has recovered somewhat to 3.6%. Part of the reason for this is the late timing of Easter in 2011. Seasonal products such as flowers, hot-cross buns, lamb and, of course, Easter eggs all showed sharp decreases over the same period last year as Easter was much earlier. However, this year there may well be a degree of catch-up taking place as Easter markets peak later.”