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Sainsbury’s, Lidl and Aldi gain share in UK grocery market

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“Not much festive chair for supermarkets collectively this month with growth falling to a feeble 0.1%.” That’s how Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, began discussing the company’s latest data on grocery share in the UK, covering  the 12 weeks to December 6.

Furthermore, like-for-like prices had fallen by 1.9% in the previous month, he said.

But in among the gloom, Sainsbury’s was the stand-out performer. It boosted sales by 1.2%, growing across its convenience, supermarket and online businesses and increasing its market share to 16.7%.

Meanwhile it was a familiar story of falling sales and shrinking share for Tesco, Asda and Morrisons, but for Aldi and Lidl, one of double-digit growth and they “are surely looking forward to a record Christmas market share,” McKevitt said.

Listen to his analysis and read more here: http://www.kantarworldpanel.com/en/Press-Releases/Sainsburys-stands-out-in-the-run-up-to-Christmas

 

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German discounters now command a tenth of British grocery sales

Discount retailers Aldi and Lidl have reached a combined 10% share of the British grocery market for the first time, new grocery share figures from Kantar Worldpanel for the 12 weeks to November 8, 2015, show.

Discount retailers Aldi and Lidl have reached a combined 10% share of the British grocery market for the first time, new grocery share figures from Kantar Worldpanel reveal.

The data, for the 12 weeks to November 8, show Lidl’s market share reached a new record high of 4.4%, up 0.7 percentage points on last year thanks to 19% sales growth. Aldi grew sales by 16.5%, keeping its market share at 5.6% for the fifth consecutive month.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said the discounters show no sign of stopping and with plans to open hundreds of stores between them will further widen their reach to the British population.

“If you look back as recently as 2012, Aldi and Lidl only held a 5% share of the market, and it had previously taken them nine years to double their combined share from 2.5%. In the last 12 weeks the two retailers have attracted another additional million shoppers compared with last year while average spend per trip has increased by 4% to £18.85, which is 78p ahead of the total retailer average,” McKevitt said.

Other highlights from the latest data:

  • Sainsbury’s: has seen its fourth consecutive period of growth despite the tough market, with sales up 1.5%
  • Tesco: sales were down by 2.5%
  • Morrisons: sales fell 1.7%
  • Asda: sales dropped 3.5%
  • Waitrose: sales up 2.7%
  • The Co-operative: sales up 1.5% & a 0.1 percentage point gain in market share

Shoppers paying less

Grocery inflation stood at -1.7% for the 12 weeks to November 8, which means shoppers are now paying less for a representative basket of groceries than they did in 2014. “This is the same fall as reported last month. Falling prices reflect the impact of Aldi and Lidl and the market’s competitive response, as well as deflation in some major categories including eggs, butter, bread, crisps and fresh poultry,” Kantar Worldpanel reported.

 

sources
http://www.kantarworldpanel.com/en/Press-Releases/Aldi-and-Lidl-reach-10-per-cent-share-of-the-British-grocery-market-for-the-first-time
http://www.kantarworldpanel.com/en/grocery-market-share/great-britain

 

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Big ad spends help Aldi, Lidl grab more of UK market

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German discounters Aldi and Lidl now hold an 11% slice of UK grocery sales.

According to Nielsen figures for the 12 weeks to March 28, Aldi’s sales grew 17.9% year-on-year, to reach a 6.2% share of the grocery market, and Lidl’s sales rose 10.8%, for a 4.9% share – cementing their positions as the UK’s 5th and 7th biggest supermarkets, respectively.

Lidl biggest spender on TV & press ads

In the four weeks to March 28, Lidl spent the most on TV and press advertising (£5.9 million) – up 160%  on the same period last year – followed by Asda (£4.0 million) and Aldi (£3.5 million).

“Aldi and Lidl have become the fifth and seventh biggest supermarkets partly due to their large ongoing investment in advertising. Not only do they consistently spend the most in relation to each percentage of market share they hold, their advertising has changed the perceptions and expectations of UK shoppers,” Nielsen’s UK head of retailer and business insight Mike Watkins said.

Bad month for the Big Four

Over the same period, all of the big four supermarkets saw a decline in year-on-year grocery sales. Asda’s slipped 1.7%, Tesco’s 1.1% and Sainsbury’s and Morrisons 0.6% each.

However, Tesco remained in top ranking, with a share of 27.5%, followed by Sainsbury’s with 16%, Asda with 15.7% and Morrisons with 10.7%.

Outlook for next 3 months more positive

Watkins said the current trading environment is challenging for the supermarkets. “…people (are) spending less on groceries than they used to.”

“Consumer spend continues to be impacted by a combination of record-low food inflation and supermarkets’ competitive pricing policies – good news for shoppers but not retailers, whose margins are continually under pressure. However, the outlook for the next three months is more positive than we’ve seen for some considerable time,” he said.

Read the Nielsen press release.
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