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No Stopping Aldi in UK Grocery Market

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No Stopping Aldi in UK Grocery Market

No Stopping Aldi in UK Grocery Market
October 23
09:07 2013

The latest UK grocery share figures from Kantar Worldpanel, for the 12 weeks ending 13 October 2013, show a further step in the remarkable rise of Aldi. Its latest market share of 3.8% is yet another all-time record and is a sharp increase compared with 3.0% this time last year.

Edward Garner, director at Kantar Worldpanel, comments: “Aldi’s year-on-year growth rate of 31.7% is the latest in an unbroken series of double-digit growth figures that date back to early 2011. The retailer has done a particularly good job in conveying its competitive pricing message through its ‘Like Brands Only Cheaper’ and subsequent ‘Swap and Save’ campaigns – both of which have given the supermarket a clear point of difference.

“Lidl’s growth of 13.1% is somewhat overshadowed by Aldi’s performance but it nevertheless keeps up a strong run. The combined discounter share of 6.8% continues to grow and has remained above that of the Co-operative since March this year.”

The only grocers to resist pressure from the discounters are Sainsbury’s and Waitrose which have outperformed the market with growth of 3.7% and 7.6% respectively. Elsewhere, the polarisation of the grocery market and subsequent pressure on the middle-ground continues unabated, with Tesco, Asda and Morrisons all recording growth behind the 3.0% market average.

Iceland’s share is static at 2.0% this period despite growth dipping below the market average. Its position is likely to strengthen in the run-up to Christmas when it traditionally performs as a result of its frozen party food offering.

Grocery inflation remains at 4.2% for the 12 week period ending 13 October 2013. This exceeds the overall grocery market growth of 3.0% and implies increased pressure on households to manage down their ‘personal inflation’ by seeking lower prices.

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