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UK: Aldi prints 21,2% more sales

Aldi continues to grow at the highest rate at 21.2% (and this is growth on growth with +14.4% reported in the same period last year) according to latest Kantar's UK market data report for 12 weeks ending 6th August.

At a recent IGD conference Aldi was claiming the number 2 spot in volume. With store number 1000 in the UK due to open imminently, there appears no holding back on their relentless pursuit of more share of the market.

Also, Lidl performed a significant growth of 19,8%.


This time last year inflation was ramping up at 9.6% (12-week period), on its upward trajectory towards the peak of 17% in April this year. With year-on-year annualisation it’s not a surprise that the rate is easing, down to 14.4% in this latest data set. In the last 4 weeks it has fallen further to 12.7%.

But many prices are still on the rise as certain commodities such as sugar and eggs continue to increase. Crop yields across the world are a major concern with unpredictable weather patterns affecting many continents.

Private label

Consumers continue to seek out the best value for money, with private label sales outperforming the market at a growth of 9.7% in the last 4 weeks compared to brands growing at just 6.4%.

And within private label we see a lot of activity in the value tier with larger ranges across most of the retailers compared to this time last year. However, this will be costing the retailers a lot of money as margins are very low, or even negative, in this tier.

The price differences now being seen between private label value tier and standard tier are considerable. Take Chopped Tomatoes for example, where Sainsburys standard tier is 60p whilst their value tier is 35p (with just 5% less tomato content). The difference is even more extreme on Rice Pudding, where their standard tier at 90p is 260% more expensive than their value tier at 25p!

All the retailers will be looking at their margin mix intensely. Expect to see more launches in the premium tier of private label such as Sainsbury’s newly introduced Kitchen Deli range of food to go products, looking to replicate the now defunct in store deli options of old (and clearly earning much better margins than the value tier!)

Big 4

Of the “big 4” supermarkets, Tesco have been the most resilient over the past 5 years, with their share falling by just 0.4%. Sainsbury’s have seen a fall of 0.7%, whilst Asda and Morrisons have suffered the most from the growth of the discounters with share losses of 1.5% and 1.7% respectively.

Heads will be shaking at Morrisons’ HQ wondering what to do next to bring back customers. Something we have seen recently won’t be helping - reducing the weight of some own label key staples such as value bread, jam and marmalade whilst keeping the retail price the same....

Source: Kantar, Paul Stainton

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