Discount supermarkets Lidl and Aldi are currently second only to Tesco for UK market share, with a combined share of 16.1%, according to the latest Kantar data.
Between them Lidl and Aldi have gained 1.8% of British grocery sales over the four-week period ending 7 August period, representing a £2.3 billion annual shift in spending towards the discounters.
As the UK’s largest supermarket, Tesco currently has 26.9% of the UK market share. The next largest, Sainsbury’s, has 14.8% of the sector, which places the discounters’ combined efforts firmly in the second spot.
The focus on discounters has come in the wake of changing consumer behaviour, as customers are shopping around more to find the best value products in the face of rocketing inflation and energy bills.
READ MORE: Data: Supermarket sales continue to rise despite record grocery price inflation
Splitting the two out, Aldi remains the larger of the two discounters, with a UK market share of 9.1% – placing it just 0.2 percentage points behind Big 4 grocer Morrisons’ share of 9.3%.
Meanwhile Lidl’s market share has risen to 7%, its highest rate of growth since September 2017. It is also the currently the UK’s fastest-growing grocer according to the Kantar figures, with sales up by 17.9% over the last 12 weeks.
Other supermarkets also performed well with Asda returning to growth as sales rose by 0.2%, taking its market share to 13.9%. Co-op’s sales rose by 0.4% giving it 6.5% of the market while Iceland’s share grew to 2.8%. Waitrose holds 4.6% of the market.
“Over the past month we’ve really seen retailers expand and advertise their own value ranges across the store to reflect demand,” said Kantar’s head of retail and consumer insight Fraser McKevitt.
“Consumers are welcoming the different choices and options being made available to them on the shelves, with sales of own-label value products increasing by 19.7% this month. As an example, ASDA’s Just Essentials line, which launched this summer, is already in 33% of its customers’ baskets.”
Footfall has continued to pick up instore while online shopping declines, with total online share dropping to 11.8%; the first time it has dipped below 12% since the early days of the pandemic.
Despite this, online grocer Ocado grew its market share by 6.2% as it attracted new shoppers outside its traditional demographic.
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