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Aldi Leapfrogs Waitrose in UK Grocery Market Ranking

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Aldi Leapfrogs Waitrose in UK Grocery Market Ranking

Aldi Leapfrogs Waitrose in UK Grocery Market Ranking
April 09
12:14 2015

The latest grocery share figures from Kantar Worldpanel, for the 12 weeks ending 29 March 2015, show that Aldi has become Britain’s sixth largest supermarket. Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, explains: “Aldi has recorded double-digit sales growth for the past four years and is now Britain’s sixth largest supermarket with 5.3% of the market. Growth has been fuelled by over half a million new shoppers choosing to visit Aldi this year and average basket sizes increasing by 7%. The German discounter’s sales have increased by 16.8% in the latest period, still high compared to other retailers but slower relative to its recent performance.”

Lidl and Waitrose were the only other retailers to grow sales ahead of the market and increase their market share in the latest period. Waitrose increased its sales by 2.9% compared with this time last year and now accounts for 5.1% of the grocery market. Waitrose has grown its sales in an unbroken run stretching back to March 2009. Lidl’s 12.1% sales growth moved it up to a 3.7% share of the market.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel.

Sainsbury’s is back in growth this period for the first time since August 2014. It has brought in more shoppers, grown sales by 0.2%, and as a result has slowed the rate at which it is losing market share – down just 0.1 percentage point to 16.4%. Tesco also grew sales, up 0.3%, while Asda and Morrisons declined by 1.1% and 0.7% respectively.

Fraser McKevitt continues: “The changing structure of Britain’s supermarket landscape is illustrated by two facts. Firstly, the so called discounters Aldi and Lidl now command a combined 9.0% share of the market. In 2012 the same two retailers only accounted for 5.4% of grocery sales. Secondly, the 72.8% share taken by the biggest four retailers is now at the lowest level in a decade.”

Across the market consumers are continuing to benefit from falling prices. All major supermarkets are offering higher levels of promotion and as a result groceries are now 2.0% cheaper than they were a year ago.

Grocery inflation has seen its 19th successive fall and now stands at -2.0% for the 12 week period ending 29 March 2015. This means shoppers are now paying less for a representative basket of groceries than they did in 2014. This is another record low since Kantar Worldpanel began recording GPI in October 2006 and reflects the impact of Aldi and Lidl and the market’s competitive response, as well as deflation in some major categories including vegetables, milk, eggs and bread.

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