German discounters Aldi and Lidl now account for 17.8% of the total retail market share in the UK, new data has revealed.
According to the latest figures from retail analysts Kantar, Aldi’s market share jumped to 10.1% in the last month, while Lidl’s increased to 7.7%.
Budget supermarket Aldi was also the fastest growing grocer this month – with sales up by 24% – while Lidl’s sales followed close behind with 23.2%.
More than two thirds (66.4%) of British households now shop with Aldi, as it was named the UK’s cheapest supermarket for April.
As for the other UK retailers, Tesco now holds 27.1% of the UK retail market. Sales also surged by 8.9% for Britain’s largest supermarket, with growth across its convenience stores, large format supermarket and online channels.
Second largest UK retailer Sainsbury’s has maintained a steady market share of 14.8%, while its sales rose by 10.5%.
Asda’s sales grew by 10.6% – boosted by its Just Essentials range – while its market share now stands at 13.9%, a rise of 0.1 percentage points when compared to the same 12 weeks last year.
Launched 12 months ago, nearly two in five Asda baskets contained at least one of these value items this May.
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The news comes as grocery price inflation has fallen for the second month in a row and now sits at 17.2%, for the four weeks to 14 May 2023.
Waitrose’s market share sits at 4.6%. The upmarket retailer benefited from a substantial uplift in the week of the coronation, with sales up by 4.8% over the 12 weeks – the highest rate of growth the retailer has achieved since April 2021.
Morrisons took an 8.7% share this period, while convenience specialist Co-op nudged up its sales by 2.9%, Iceland by 9.1% and online only retailer Ocado by 5.6%.
Kantar head of retail and consumer insight Fraser McKevitt explained: “Morrisons marked its third consecutive period of sales growth this month, although the increase was more muted versus others at 0.6%.
“The grocer will be hoping the relaunch of its ‘More Reasons to Shop’ strapline will help it to keep up the positive momentum.
“In the fierce contest for market share, eyes have been on the dairy aisle in particular, where the average cost of four pints of milk has come down by 8 pence since last month.
“Prices are still much higher than they were 12 months ago, at £1.60 currently versus £1.30 last year, but retailers know just how important it is to offer even small savings on staple products like milk to get customers through the door.”
