Sales growth at German-owned discounters Aldi and Lidl has accelerated as UK consumers look for ways to reduce spending in the face of inflation and government spending cuts, new figures from Kantar Worldpanel revealed today (27 April).
Total UK grocery sales were boosted by higher demand ahead of Easter and rose 3.6% in the 12 weeks to 17 April, up from a 2.6% increase witnessed during the previous month, the market research firm found.
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However, Kantar auggested that consumer demand remains sluggish as sales value growth was outstripped by a 4.3% rise in price inflation.
Sales growth at Aldi and Lidl surged 15% and 14.7% respectively, taking
their market shares to “record highs” of 3.3% and 2.6%. Kantar said that growth at the discounters was the consequence of higher transaction values from existing customers, not an increase in new custom.
Kantar also noted that upmarket supermarket group Waitrose posted the next highest growth rate at 7.7%, suggesting a polarisation of UK consumption patterns.
Of the ‘big four’ retailers – Tesco, Asda, Morrisons and Sainsbury’s – only Morrisons saw sales increase ahead of the market, with revenues rising 4% in the period to lift its market share from 11.8% 12 months ago to 11.9%.
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By GlobalData
