Updated: Jan 16
Sales grew +6.7% in the period but inflation hit 15.4% so volumes were down -4.0%. privatelabel grew +11.1% versus brands at +4.2% indicating growing price sensitivity as inflation hits spending power.
Lidl gained 0.5ppts share YOY during the 12wks to Christmas with a solid seasonal product range and a sharper price position versus competitors. They also benefitted from 6 new store openings and 8 completely refitted & reopened stores. With the new generation stores being larger than Aldi's, Lidl are better positioned to sell the kind of volumes that are required to maximise sales in the big Christmas shopping week. And their post-Christmas recovery is much improved too. Aldi achieved 11.6% share for the 12wks to Christmas ’22, exactly the same as 2021. It is curious that they have not made any share gains through 2022, when inflation is making shoppers more price sensitive. And if their sales grew +7.1% with market-level inflation at +15.4%, and with 6 new stores YOY, then their volume decline at an individual store level must be a concern.