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UK Grocery Market – Aldi Has 10% More Shoppers

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UK Grocery Market – Aldi Has 10% More Shoppers

UK Grocery Market – Aldi Has 10% More Shoppers
December 10
12:05 2012

The latest UK grocery share figures from Kantar Worldpanel UK, for the 12 weeks ending 25 November, show the market growing at 3.2%. Although this is in line with the average over the past eight months, it is below the 3.5% inflation figure with tight household budgets meaning that shoppers are reluctant to trade up and careful not to spend more than strictly necessary.

Edward Garner, director at Kantar Worldpanel, comments: “The strong performances from Waitrose, Iceland, Aldi and Lidl continue to be a key feature of the grocery market. In particular, the advance of Aldi continues unabated and its 27.3% growth is being built on a solid foundation with 10% more shoppers than a year ago and 17% growth in the value of each shopping basket.”

Aldi intends to open another 40 stores in 2013 which will bring its total to over 500 outlets. Some of these will be smaller high street stores, which will help the retailer to become more competitive in the convenience market and is likely to cement its success further.

Edward Garner continues: “Sainsbury’s is once again the top performer of the big four and has beaten the market with year-on-year growth of 4.7%. While the other big three retailers all experience share losses, it has managed to lift its share from 16.7% last year to 16.9% now. These share losses are particularly acute for Morrisons which has experienced a sales decline of 1.1%, bringing its share down from 12.3% a year ago to 11.7% now. The online grocery channel is currently growing at nearly 20% per annum, and Morrisons’ absence from this channel will be holding it back. However, it is expected that online wine sales via Morrisons Cellar will make a start on addressing this.”

Grocery inflation stands at 3.5% for the 12 week period ending 25 November 2012. This is an increase on the 3.0% Kantar Worldpanel UK reported last period and the recent low of 2.6% for September, and is largely driven by increases in fresh foods and alcohol.

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