Cost-conscious shopping sees surge for discounters

Discount supermarkets have continued to see their market share and sales soar as cash-strapped consumers turn their back on premium lines.

The latest set of Kantar Worldpanel figures showed that, for the 12 weeks ending 8 July 2012, Aldi and Lidl achieved a record market share of 2.9% each. Aldi saw growth of 26.1% and Lidl saw sales improve by 11.5%.

However, overall the statistics revealed that grocery sales at supermarkets was slowing down, with growth at 2.1% in the period compared to a year ago when growth was at 4.2%.

Edward Garner, director at Kantar Worldpanel, said: "We are seeing big cutbacks by consumers as they continue to respond to this current period of austerity. The success of the discounters, Aldi and Lidl, is a clear example of shoppers watching their purses, with both retailers continuing to surge ahead.

"Once again, they both achieve all-time record shares of 2.9% and remarkable growth of 26.1% for Aldi and 11.5% for Lidl."

The frozen food sector is continuing to be the top-growing food sector, as the big four supermarkets Tesco, Asda, Morrisons and Sainsbury's remain unchanged in market share growth.

Garner added: "Another sign of austerity making an impact is the decline of the premium own-label sector. These products have been in continuous growth since 2008, despite often being more expensive than their brand equivalent. Now, however, they are declining by 6% year-on-year, while economy own-labels, such as Tesco's Everyday Value, are growing at 13%."

Grocery inflation was reported to be 3.8% for the 12-week period ending 8 July 2012, decreasing since the most recent peak of 6.2% in November last year, which has been attributed to lower inflation for fresh produce and falling milk prices.

Want more stories like this in your inbox?

Sign up for our FREE email newsletter

My Account

Promotional Features 

Most read