Kantar Worldpanel: Aldi bags record market share in the UK

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Aldi: record market share in the UK

Aldi: record market share in the UK

Discount retailer Aldi has bagged a record 3.6% share of the UK grocery market, according to the latest figures from Kantar Worldpanel.

Figures, published today for the 12 weeks ending 7 August 2011, reveal Aldi’s sales grew by 24.4% in the period, lifting its share from 3.0% a year ago.

Rival discounter Lidl also recorded strong year-on-year growth and, with sales up by 13.8%, maintained its record 2.6% stake.

Overall, the grocery market grew by 3.8%, below the 5.2% grocery price inflation in this period.

Edward Garner, director at Kantar Worldpanel, said: “It is evident shoppers are trying to manage their personal inflation by trading down. This can be done by seeking out lower priced outlets and cheaper alternative products.

“It’s therefore unsurprising the discounters have pushed further ahead this month.”  

But while the discounters are prospering, economy private label lines are not reaping the same rewards, said Kantar.

“Budget own label is showing only muted growth of 2%; while premium own label is growing at over 8% confirming, despite economic pressures, low price is not the only motivation in this market,” said Garner.

Further evidence of the market’s polarisation comes from Waitrose, which has increased sales by 8.3% – double the market growth.

Conditions are challenging for the top four grocers, however, and only Morrisons has increased share in the latest period – up to 11.7% from 11.6% –  with year-on-year growth of 4.6%, slightly ahead of the market.

Netto recorded a sharp decline in sales of 36.8% in the period but this is a result of the store conversions to the Asda brand alongside store disposals, as required by the OFT.