Discounters on the rise as consumers manage budgets, says Kantar
Discount supermarket Aldi’s sales rose by 18.7% over the 12 weeks to 4th September 2022 making it Britain’s fourth largest supermarket, according to Kantar’s latest market report.
For the fourth month in a row, fellow discount retailer Lidl was the fastest growing grocer. This follows an incline in grocery price inflation which has hit a new record, rising to 12.4% in August. This figure means that the average annual grocery bill will go from £4,610 to £5,181 if consumers do not change what they usually buy.
Head of retail and consumer insight at Kantar Fraser McKevitt said the rate at which food prices are increasing continues to accelerate. He added that shoppers are taking steps to manage their budgets by “broadening” the range of stores they visit in which the discount grocers are benefiting.
Dramatic sales increases
According to the report, the discounters have seen “dramatic” sales increases in recent months, bringing more customers through their doors.
Aldi has expanded its shopper base with store openings and by welcoming 14.2 million consumers to the grocer over the past three months. Lidl grew sales by 20.9% which means its market share has now increased to 7.1%, recording its strongest sales performance since October 2014.
McKevitt said: “Back at the start of the 2010s, Tesco, Sainsbury’s, Asda and Morrisons together accounted for over three quarters of the sector but that traditional big four is no more.”
Iceland also won market share in the latest period with its sales being 5.8% higher than in 2021. Tesco, Sainsbury’s and Asda all achieved their best sales performance since April 2021.
Market share for Tesco now stands at 26.9% following a 1.9% boost to sales, while Sainsbury’s accounts for 14.6% of the market. Asda currently holds 14.1% of the market following a 2.2% growth in sales.