Morrisons and Asda have lost market share as consumers turn to discounters Aldi and Lidl in the face of ever-increasing levels of grocery price inflation.
According to the latest data released by Kantar, both Aldi and Lidl reported a sales rise of 3.6% when compared to last year’s figures for the 12-week period ending 20 March 2022.
This boost pushed Aldi to a new record high market share of 8.6%, while Lidl held on to its increased market share of 6.4%, which it first claimed back in November last year. Between them, the discounters now account for 15% of the UK supermarket sector.
Tesco has also increased its market share, which now sits at 27.4%, up from 27.1% during the same 12-week period last year.
At the same time, Morrisons and Asda were hit the hardest by changing habits, reporting a 11.5% and 9.9% decrease in market space year-on-year, respectively. Iceland also saw a 9.6% decrease in market share, with independent retailers reporting a 13.4% decrease in sales.
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Sainsbury’s market share now stands at 15.1%, while Asda holds 14.5% and Morrisons 9.5%. Co-op, Waitrose and Iceland’s shares are 6.0%, 4.8% and 2.2% respectively.
The boost to sales for the discounters came from a number of places.
Aldi performed particularly well across the bakery and chilled convenience aisles, with sales up 17% and 11% respectively. Lidl saw a 16% increase in customers aged over 55, as they continue to return to in-store shopping post-pandemic.
“Two years on since the first lockdown, we can assess what permanent changes the pandemic has made to the grocery landscape,” said Kantar head of retail and consumer insights, Fraser McKevitt.
“What we’re really starting to see is the switch from the pandemic being the dominant factor driving our shopping behaviour towards the growing impact of inflation, as the cost of living becomes the bigger issue on consumers’ minds.”
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