Blog: Discounters in the UK: The story is old ..... but it goes on
Dean Best | 8 April 2014
Fresh data by Kantar Worldpanel issued today (8 April) again showed the inroads discount retailers are making in the UK.
Aldi saw its "highest-ever growth" in sales during the 12 weeks to 30 March, Kantar Worldpanel said. The German retail giant saw its sales jump over 35%, taking its share of the market to 4.6%.
Kantar's sales data includes the impact of store openings but, even so, the latest figures again demonstrate the success Aldi is having in the UK - and the effect it and discount peer Lidl is having on the country's larger grocers. Lidl's sales were up over 17% - taking its market share to 3.4% - and in a sector that, as a whole, inched up by only 1.5% year-on-year.
"Amid a challenging market backdrop, individual retailer growth might be expected to be restricted. This is certainly not the case for Aldi. Lidl also experienced strong growth in a record breaking month," Kantar Worldpanel director Ed Garner said.
Each of the UK's so-called Big Four - Tesco, Asda, Sainsbury's and Morrisons - saw their sales and market share fall.
Asda, Garner said, was the most "resilient", with its sales only 0.5%. Wal-Mart, the owner of Asda, will be pleased, the data coming amid challenging conditions in the US and after announcements it would invest a hefty amount of money behind its prices in the UK.
For Morrisons, the data is another blow. Its sales dropped 3.8% year-on-year. It is early days in Morrisons' attempts to focus more on price after another year of falling sales but the numbers underline the challenge ahead of the UK's number four grocer.
And for Tesco, which according to Kantar now sees its market share stand at 28.6%, the data provides more colour of how it is faring in its domestic market ahead of the publication of its annual results next Wednesday.
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