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UK: Discounters make a strong start in 2023

Aldi and Lidl saw strong sales of 26.9% resp. 24.1% in the four weeks to 22 January 2023. The German discounters show a market share of 9.2% resp. 7.1%, new data shows.


According to Kantar, although grocery price inflation hit a record 16.7%, the highest level since is started tracking the figure in 2008.


At the remaining Big 4 grocers, Sainsbury’s sales increased by 6.1%, just 0.1% higher than Asda and Tesco, giving it 15.4% of the market. Tesco continued to hold the largest share of the supermarkets with 27.5% and Asda remains in third place at 14.2%.


Kantar’s data also found that despite Morrisons sales falling by 1.9%, its market share stands just behind Aldi at 9.1%.


Frozen food retailer Iceland also increased its share to 2.5% driven by an annual sales rise of 10.6%, while online-only supermarket Ocado hit 7.6%, with 5.5% for Co-op and 4.7% at Waitrose.


Kantar'sHhead of Retail and Consumer insight, Fraser McKevitt said this comes as “competition in the British grocery sector is as intense as it’s ever been as retailers strive to retain shoppers.”


“The grocers have been doing this by boosting their own-label ranges especially, with sales of these lines growing consistently over the past nine months. January was no exception as own-label lines grew by 9.3%, well ahead of branded alternatives which were up by just 1.0%.”


He added that across the market, “the move is towards everyday low pricing, with many supermarkets offering price matching and using their loyalty schemes to help shoppers save.

“Aldi, Waitrose and Lidl’s efforts seem to have been particularly well received by shoppers. Our latest customer satisfaction data shows that Aldi scores best on pricing and overall value for money, while Waitrose stands out for knowledgeable staff, product quality and clean shops. Meanwhile, Lidl delivers on easy access to stores and on-shelf availability.”


He added that across the market, “the move is towards everyday low pricing, with many supermarkets offering price matching and using their loyalty schemes to help shoppers save.

“Aldi, Waitrose and Lidl’s efforts seem to have been particularly well received by shoppers. Our latest customer satisfaction data shows that Aldi scores best on pricing and overall value for money, while Waitrose stands out for knowledgeable staff, product quality and clean shops. Meanwhile, Lidl delivers on easy access to stores and on-shelf availability.”


Source: Grocery Gazette, Kantar






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