European discounters are continuing to gain popularity among UK shoppers at the expense of major supermarkets, according to the latest figures from Kantar Worldpanel.
New grocery share figures show that Aldi increased its market share more than any other major player in the 12 weeks to August 17th, taking 4.8 per cent compared to just 3.7 per cent in the previous 12 week period.
Lidl is growing more slowly, but is comfortably the second-fastest growing supermarket in terms of market share. It added 0.5 percentage points over the same period, bringing its total share of the market to 3.6 per cent.
But when market share grows in one corner of the market it must shrink elsewhere, and Tesco has by far been the biggest victim. It shed 1.4 percentage points from its market share, falling from 30.2 to 28.8 per cent.
Even so, it remains by far the market leader ahead of second-place rival Asda, which was the only one of the big four supermarkets to grow at all. Asda’s share rose by 0.1 percentage point to 17.2 per cent of the market over the period. Kantar Worldpanel director Ed Garner says this is largely thanks to its “Price Lock” strategy, which is intended to keep down the price of essentials.
Sainsbury’s and Morrisons also lost small proportions of their market share. The former lost 0.1 per cent to hold a market share of 16.4 per cent, while the latter shed 0.3 percentage points down to just 11 per cent.
Yet the discount supermarkets are not the only threats to the position of the major players. Luxury brand Waitrose is also performing well, having gained 0.1 percentage point to hold a market share of 4.9 per cent. That means it is still slightly ahead of Aldi, but since it is growing more slowly that may not be the case for much longer.
Mr Garner says that grocery price increases are slowing down, which has inhibited the grocery market as a whole.
“Competitive pricing among the big grocers and deflation in the price of staple items such as vegetables, milk and bread has driven inflation down yet again,” he writes in his commentary on the data.
“This naturally impacts on the overall growth of the grocery market, which has fallen to a ten year record-low of 0.8 per cent.”