Discount supermarkets Lidl and Aldi have claimed a combined market share of 16% as shoppers continue to look for ways to keep costs down amid soaring inflation and rising grocery prices.
The latest take-home grocery figures from Kantar reveal that while grocery prices have continued to climb – with inflation reaching 9.9% – supermarket sales have risen by 0.1% in the 12 weeks to 10 July 2022.
As a result, shoppers have turned away from the major supermarkets and are heading to budget grocers Lidl and Aldi, leading to their highest-ever combined market share of 16%.
Lidl now holds 7% of the UK grocery market, while Aldi’s share climbed to 9.1%. Aldi is now just 0.3% behind Morrisons, which is hanging on to its place in the Big 4 grocers with a market share of 9.4%.
The data showed that Lidl was the fastest growing supermarket again this period – for the fifth time in a row – with sales up by 13.9%.
German supermarket Lidl has grown rapidly since it came to the UK, making great strides across the discount grocery landscape in recent months. It overtook Co-op to become the UK’s 6th largest supermarket earlier this year, when it had a market share of 6.1%.
Aldi also showed double-digit growth, boosting its sales by 11.3%, compared with last year.
READ MORE: Average UK food bill climbs to £454 a year as inflation hits 9.9%
Kantar’s head of retail and consumer insight Fraser McKevitt said: “Over 67% of people in Britain shopped in either an Aldi or a Lidl in the past 12 weeks, with 1.4 million additional households visiting at least one of the discounters in the latest three months compared with last year.”
Tesco returned to growth this period for the first time since October, boosting its sales by 0.1%. The UK’s largest supermarket has retained its market share of 27.1%, down slightly from 27.3% in the previous period.
Ocado was the only other retailer to show growth, holding its market share steady at 1.8% while sales were up 0.7%.
Sainsbury’s, Asda and Iceland all held their market share flat from the previous period, with 14.9%, 13.7% and 2.3% of the market respectively. Co-op recorded a 6.3% market share (up from 6.2%), with Waitrose at 4.6% (down from 4.8%).
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