Aldi’s market share breaking 10%, plus the continuing growth of Private Label products are the headlines from the Kantar UK data report for 12 w/e 16th April 2023.
12-week grocery sales are up 9.4%, compared to 8.6% during the last period. In the last 4 weeks grocery inflation was at 17.3%, marginally down from the 17.5% recorded in the previous 4 weeks.
Aldi's 12 weeks’ sales of nearly £3.3 billion, their highest ever, means their market share has broken a significant milestone at 10.1%. Both Aldi and Lidl's growth year-on-year is over 25%, resulting in the discounters having a combined share of 17.7% of the market, 0.3% points ahead of the last 12-week period and 5% points higher than the same time 5 years ago.
Both of the discounters usually open between 40 and 50 new stores each year. Planning objections from rival supermarkets is making this increasingly difficult, and Lidl have stated they will only open around 25 this year (although they’ve already opened 15 since January).
With Aldi at around 990 stores, and Lidl at around 960, Aldi make their stores sweat more, with average weekly sales per store of £276,000. Lidl’s average weekly sales per store are 22% lower, at £215,000. More potential for Lidl to grow organically maybe?
Of the “big 4”, Morrisons continue to struggle. Although their sales are positive, at +0.1%, with inflation similar across all the supermarkets, their volumes will be down significantly. It is no surprise that they have just announced they will follow Tesco, Sainsburys and Coop by offering discounted prices for their loyalty card holders.
With 8.7% market share, Morrisons are now only 1.1% points ahead of Lidl. If current sales trends continue, Lidl will overtake Morrisons as the number 5 retailer within the next 12 months.
Tesco, having recently announced a fall in overall adjusted group margin from 4.6% to 4% for the year to 26th February, continue to dominate the market with 27% share. They are the only one of the big 4 whose share is higher than the same time 3 years ago.
As retail prices increases show little sign of abating, Private Label growth is over 3 times higher than brand growth at +13.5% YoY (brands are +4.4%). Value tier own label is growing at 46%, now appearing in nearly 20% of all baskets.
Source: Paul Stainton, Kantar
#smartdiscount #drc #discount #retail #consulting #discountretail #discountretailconsulting #aldi #lidl #uk #kantar #growth #privatelabel #ownbrand #competition #marketshare #tesco #morrisons #asda #sainsbury
