More and more Australians are filling their trolleys at Aldi and sharing $3.1 billion in annual savings. Grocery shopping data released today by Aldi Australia shows that its Price Promise commitment remains strong, with $3.1 billion in savings delivered directly to customers in 2022, as analysed by PwC. And, for those shoppers yet to make the switch, the downward pressure Aldi places on grocery prices in Australia saved non-Aldi shoppers $675 million in 2022 and a massive $7.8 billion since it opened its doors here over 20 years ago. That’s real money back in the pockets of Australian families at a time when they need it most. Aldi released the data along with a recommitment to its Price Promise, that Aldi will not be beaten on the cost of the weekly shop. With the average family spending over $10,000 on groceries every year, and inflation on non-discretionary goods the highest it’s been in 30 years, this is a welcome commitment for Australian grocery shoppers. Jordan Lack, Managing Director, Aldi Australia, said: “Aldi’s business model is about saving people money. We aim to cut out unnecessary costs and pass these savings onto customers. This has never been tested more than it was in the past year, and we’re proud that we’ve been able to maintain our price leadership at a time when Australians need it most, delivering Aldi customers $3.1 billion in savings last year alone.” “We recognise the great responsibility we have to our shoppers and the broader community when they’re feeling the pinch from the rising cost of living. Our Price Promise remains the same from the day we opened our first store over 20 years ago – we won’t be beaten on the cost of your weekly shop. We know this commitment is more important today than ever,” Lack continued. Price sensitive shoppers are increasingly making the switch to Aldi Aldi’s prices are resonating with Australian shoppers, with data showing more customers are shopping at Aldi stores more often in the last quarter of 2022 (+4.2%, YoY) and delivering a gain in total market share in the same timeframe. Aldi has also seen significant sales growth in the last quarter of 2022 (+13.2% YOY). These sales growth metrics have been driven by changing customer behaviour, of which: Customers switching some or all of their spend to Aldi from other retailers, accounting for 73% of growth; Existing ALDI shoppers increasing their spend at Aldi, accounting for 25% of growth; and Customers who are new to Aldi and are shopping at Aldi for the first time, accounting for 2% of growth. These growth trends are expected to continue in 2023 as customers make value-driven choices about how they spend their hard-earned dollars. “We have seen a shift in customer purchasing behaviour. Existing customers are shopping with us more frequently, and an increasing number of Australians are looking to Aldi for their grocery needs. We have seen increases in what we call the ‘centre of the plate’ – or proteins and vegetables – as Australians try to reduce pressure on their household budget without compromising on the quality of the family meal”, Jordan Lack said. Aldi’s Price Promise is built into its operating model and is why Aldi is “Good Different”. It’s built into how Aldi’s stores are run (including why customers need a trolley token and pack their own bags); it’s built into how Aldi curates its award-winning range that is streamlined seasonally to meet customer needs; and it’s at the heart of how Aldi works with its network of Aussie farmers, growers and supplier partners. “We offer the best prices for customers by partnering with our suppliers for the long term and negotiating fair prices that deliver mutual value. We’re proud to work with a host of Aussie primary producers to connect our customers with the best value and highest quality products.” Mr Lack concluded. Data references Savings data compiled and analysed by PwC. The price gap between Aldi and competitors has been estimated using Aldi internal price data and Aldi provided price comparisons for major competitors. This has been translated into a price saving for Aldi customers using estimated household expenditures across categories drawing on Australian Bureau of Statistics (ABS) Household Expenditure survey and a range of supplementary ABS data sources. Source: Aldi business data credited to Circana Shopper Panel. Read more: Aldi doubles down on Price Promise - Retail World Magazine #smartdiscount #aldi #australia #assortment #savings #inflation #shoppers #value #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting

The discount channel reported a 0.4 percentage point increase in market share in France in the first quarter of 2023, to hold 11% of the market, new data from Kantar has shown. Led by Aldi, which grew its market share to 3% during the quarter (a 0.2 percentage point gain), and Lidl, which now sits on 8% (a 0.1 percentage point gain), the discount channel was the fastest growing during the period. Elsewhere, the supermarket channel, which accounts for 29.6% of the market, saw a 0.2 percentage point gain in market share during the quarter, while the proximity channel was also up 0.2 percentage points, to 6.8% of the market. Going the other way were the hypermarket channel, which saw a 0.1 percentage point decline in share during the period, despite gaining popularity due to their low-price offering, while the online channel was down 0.2 percentage points. Retailer performance In terms of the best-performing retailers in the period, E. Leclerc experienced a growth of 0.3 percentage points, reaching 22.5% of market share, while Les Mousquetaires, which operates the Intermarché banner, increased by 0.1 percentage points and reached 15.8% of market share. Magasins U remained steady, consolidating at 11.7% of market share. However, Auchan Retail saw a decline in the quarter, dropping to 8.9% market share. According to Kantar, the most recent quarter has seen an increase in shopping around, with the French visiting nearly nine different retailers on average during the period. Inflation hits a record Food price inflation rose to 16.2% in March 2023 (source: Circana), a new record, while French households have faced double-digit inflation in food prices for the sixth consecutive month. The 'anti-inflation baskets' deployed by retailers, which mainly target entry-level products and private label brands, have enabled the lowest-earning demographic to purchase more volume (+2.8%), Kantar added. Source: ESM, Kantar

Private label is gaining share in 80% of grocery categories, new research by Barclays has revealed, with store brands seeing the most momentum in the Drinking Yoghurt, Detergent and Ice Cream categories in the EU, and the Disinfectant and Water categories in the US. Barclays' research, Food/HPC Private Label: "There is no stopping", which tracks private-label gains and losses across 46 grocery categories, found that store brands were gaining share in 37 of these categories. Categories in which private-label is not gaining share include Sparkling Water, Shampoo, Skincare, Milk, Cosmetics, Skin Cleansing, Soap, Cough & Cold, and Baby Milk. Food And Non-Food In terms of food, private label is gaining the most share at a European level in Yogurt (up 456 basis points), Ice cream (up 402 bps), Sauces (up 230 bps) and Mayonnaise (up 195 bps). The household and personal care category tells a different story, however. At a European level, while private label 'was gaining share at our last check, interestingly we notice that there has been a slight reversal, with brands fighting back in some categories', according to Barclays. In Baby Diapers (up 356 bps), Detergent (up 277 bps), Sanitary Protection (up 224bps) and Dishwashing (up 215 bps), private label continues to post strong gains, but it is losing share in Skin Care (down 25 bps) and Cosmetics (down 9 bps), Barclays data showed. Source: ESM

Mr. DIY, a leading home improvement retailer with the largest number of stores in Thailand celebrates its 600th store opening in Thailand with the launch of a newly designed store concept. Mr. DIY stores offer a wide selection of — approximately 15,000 SKUs — across 10 categories — Hardware, Household, Electrical, Car Accessories, Furnishing, Stationery & Sports, Toys, Gifts, Computer & Mobile Accessories, and Jewelry & Cosmetics. The new developed store concept is to serve mixed-use lifestyle customers in the Thonburi area, emphasizing the success of operating business in Thailand for 7 years with an aim to be top of mind for customers of all genders and ages through its variety of over 15,000 products in 10 categories which can meet the needs of everyone in every day in line with the branding communication campaign of ‘The Everyday Store for Everyone’ together with the promise of 'Always Low Prices'. “Since the opening of the first store in 2016, Mr. DIY has always been receiving great support from customers and business partners as well as the dedication of over 6,500 employees across the country, according to the Head of Marketing. Last year, Mr. DIY has served more than 58 million customers and has continuously expanded stores to cover 72 provinces throughout Thailand. This year, Mr. DIY is delighted to celebrate the 600th store at ICS, which is an important milestone for our business in Thailand in order to provide a variety of over 15,000 quality products in 10 categories that can meet the needs of every Thai in every day and every season along with delivering our value of 'Always Low Prices'. This achievement emphasizes our position as a leading home improvement retailer in Thailand. “Mr DIY at the ICS Lifestyle Complex (Thonburi area) is the 600th store of Mr. DIY in Thailand with over 700 square meters of the area featuring with a newly designed store concept only at the ICS, says a spokesman from the company. The store is exclusively featured with a conceptual design of Mr. DIY branding together with the uniqueness of ICS representing the store for everyone that will serve happiness and good experiences to customers every day. In addition, the store has been decorated with special colors to match with ICS style and the premium design of wooden walls for the first time for Mr. DIY Thailand to suit the mixed-use lifestyle customers in the Thonburi area as well as the ICS’s premium mass customers. "The store aims to meet all needs of people of every gender and age in every day and every season and also provides convenience to customers with transportation covering roads, boats, and Charoen Nakhon station of a Golden Line BTS station”, according to Mr. DIY. About Mr. DIY Mr. DIY is one of the largest home improvement retailers in Asia with more than 2,700 stores across 10 countries (Malaysia, Thailand, Brunei, Indonesia, Singapore, Philippines, Spain, Turkey, Cambodia, and India). The home improvement retailer has been dedicated to making a positive difference in the lives of its valued customers by offering convenience at all of its stores nationwide. All Mr. DIY stores are managed directly, and the company often works in collaboration with other mass merchandise retailers or owners of malls or shopfront properties. Mr. DIY stores offer a wide selection of — approximately 15,000 SKUs — across 10 categories — Hardware, Household, Electrical, Car Accessories, Furnishing, Stationery & Sports, Toys, Gifts, Computer & Mobile Accessories, and Jewelry & Cosmetics. Mr. DIY Thailand was established in 2016 and currently has over 600 stores across Thailand with a commitment to developing by focusing on a customer-centric approach through operating an innovative business that is flexible when it comes to providing a wide variety of products, good quality, and value for money, holding true to its company motto: “Always Low Prices”. Source: Mr. DIY #smartdiscount #mrdiy #expansion #creador #thailand #malaysia #growth #profit #revenues #drc #discount #retail #consulting #discountretail #discountretailconsulting

Grocery is now the top category shopped in the dollar store sector, as found in ChaseDesign’s 2023 Dollar Store Channel Survey, followed by personal care and home goods. It’s no surprise that amid record-high inflation, dollar stores have become a fast-growing retail channel for food purchases, with an 89.7% increase between 2008 and 2020, according to the American Public Health Association. The sector is currently focused on growing its grocery volume through increased store count and shopper visit frequency, with Dollar General adding more than 1,000 net new stores each of the last four years, and Dollar Tree and Family Dollar averaging more than 100 each per year during the same period. Lampertius added that mainstreaming of dollar stores is taking place. In fact, shoppers said that national brands are already about half of their purchases and that they want more frozen foods (51%), more national brands (47%), and more beauty and personal care brands (35%). Dollar General is already incorporating a new store layout to create an affordable “beauty destination” in its stores. Rather than seeing these stores as a no-frills alternative to larger grocery stores, shoppers are looking for them to resemble their larger rivals more closely. Source: Jean Forney, ChaseDesign

Discount Retail Chain My Price (owned by Magnit PJSC, MOEX and LSE: MGNT), one of Russia's leading retailers, showed a 30% uplift in like-for-like sales versus convenience stores that previously occupied the premises. This was announced by Ruslan Ismailov, Magnit's Deputy CEO and Director of Retail Chain Management, during the Company's investor call. The increased sales performance is largely due to the uptick in traffic. Today, Magnit has 76 My Price discounters. In the last two months, the Company opened 25 pilot stores. According to Ismailov, by the end of the year, Magnit plans to bring the number of discounters up to 200, including 50 completely new stores to be built from the ground up, and will become the largest discounter store operator among the public federal retailers. At this time, the pilot format meets all of the Company's expectations. All discounters show positive EBITDA and net income after ramp-up. They have higher sales densities compared to convenience stores that previously occupied the premises and significantly lower operational expenses, primarily due to lower personnel costs-an average My Price discounter has 5 employees, compared to 11 people in a convenience store. Discounters also benefit from lower lease costs versus convenience stores, since they require less space and are more flexible in terms of location. Moreover, Magnit's discounters have a 30%-40% faster stock rotation versus comparable convenience stores, while requiring 40% less capital expenditures compared to the latter, which ensures an attractive return on investment. Magnit plans on continuing to develop the format and believes that it may become a substantial business segment within the Company's ecosystem. In the nearest future, Magnit will start using a distinct design for its new discounter openings, whereas existing stores mostly utilize a combination of visual elements borrowed from convenience stores. The Company will continue improving the format's assortment, aiming to eliminate similar SKUs within the same price tier and expand the range of non-food items and private labels. In addition to that, Magnit is also preparing to establish separate commercial and operations teams for the discounter format, which is today managed by employees responsible for convenience stores. Ruslan Ismailov "Over the last few years, we have seen a growing customer demand for a store format that would offer a Magnit's Deputy CEO and basic assortment of affordable products, private Retail Chain labels and high level of service. In our opinion, Price discounters are a perfect fit to capture this demand. Given the scale of our business, including our own production capabilities, Magnit is best positioned to build a truly competitive format that may potentially become a substantial segment of our business. Today, we work on improving the CVP and continue expanding the pilot, with the final decision on roll-out coming sometime next year." Magnit began piloting My Price discounters in July 2020. This format is aimed at price-sensitive consumers. The stores have a total area of 150-250 square meters and carry a range of around 2,000 articles, with 65% of the assortment belonging to the lower price segments, and 20% represented by Magnit's private labels. The focus is on fast-moving consumer goods in value packs: vegetables, fruits, dry foods, dairy products, meat gastronomy, poultry, preserved foods, confections, baby food, drinks, pet food, household chemicals, etc. The discounters follow simple zoning principles and have only a basic equipment setup. This, however, does not affect the level of customer service, which remains high and meets all the requirements to a modern store. See here for more: https://www.bloomberg.com/press-releases/2021-07-07/magnit-pjsc-magnit-s-discounters-show-30-lfl-sales-uplift

The latest market share data from Kantar for the UK market shows that Aldi and Lidl continue to outperform the competition, with Lidl reporting a 25.1% increase in sales in the 12 weeks to 16 April, and Aldi seeing sales rise 25.0%. Aldi currently holds 10.1% market share in the UK (up from 8.8% at this stage last year), while Lidl sits on 7.6% share (up from 6.6% a year ago). Shopping Around “Consumers are continuing to shop around, visiting at least three major retailers every month on average," commented the Head of Retail and Consumer insight at Kantar. "The discounters have been big beneficiaries of this, with Aldi going past a 10% market share for the first time this month. That’s up from 5% eight years ago in 2015, so we can see just how competitive the market can be. "Retailers are really battling it out to show value to shoppers, but if consumers feel their offer isn’t quite right then they’ll go elsewhere.” Tesco continues to lead the UK market with a 27.0% market share (and a sales increase of 8.0% year-on-year), with Sainsbury on 14.9% (8.7% increase in sales) and Asda on 14.0% (8.8% increase in sales). "Grocery price inflation stood at 17.3% in the four weeks to 16 April, while Private Label continues to be a go-to for British shoppers looking to save money. Own-label lines growing at 13.5%, compared to 4.4% growth for branded lines", Kantar said. Source: ESM, Kantar

Aldi gains 1.1 million additional shoppers last year! Aldi reached a market share of more than 10% at the UK food retail market and grew with 25%! The Kantar report also shows more than two-thirds (66.4%) of British households now shop with the discounter after it attracted an additional 1.1 million shoppers over the last year. The Kantar data reveals that households switched over £ 300 million in grocery spend to Aldi in the first quarter of this year, with the chain’s shoppers buying more items per visit than at any other supermarket. Kantar figures released earlier this week show one pound in every ten that is spent in British supermarkets now goes through Aldi’s tills after its market share reached double-digits (10.1%) for the first time. Giles Hurley, Chief Executive Officer of Aldi UK, commented: “Almost 19 million shoppers are taking advantage of our brand-like quality and unbeatable prices. “People are facing difficult choices about how they spend their money and are changing the way they shop. Shoppers are switching from big stores with big prices to counter the effects of inflation and keep more of their money in their pockets. “Independent analysis shows we are consistently the UK’s cheapest supermarket, and our commitment to our customers is that will always be the case.” Source: Brian Moore, Kantar

Kantar Research shows that Discount grocers are winning over more British shoppers as a tenth month of double-digit food-price inflation cuts into household budgets. German discounter Lidl was the fastest-growing grocer, with sales increasing 25.1%, market research group Kantar said on Tuesday. Aldi was close behind, increasing its market share to more than 10% for the first time. UK inflation has remained stubbornly high as consumers saw the sharpest jump in food prices in four decades last month. Retailers are fighting to attract cash-strapped shoppers scouting for the best deals as they visit multiple major stores every month and turn to own-label products. Shop-price inflation dipped slightly to 17.3% in the four weeks to April 16, Kantar said. “The latest drop in grocery price inflation will be welcome news for shoppers but it’s too early to call the top,” said Fraser McKevitt, head of retail and consumer insight at Kantar. April saw record Easter shopping despite elevated prices. Grocers sold 5 million more Easter eggs and treats than last year, and hot bun sales were up 5%. Brits spent around £14 ($17.5) on chocolate in April, the equivalent of six packs. Pricey Milk Eggs, milk and cheese are seeing the fastest price gains, Kantar said. Shoppers are relying on supermarket own-label lines with sales up 13.5%. Consumers are now after the cheapest of the cheapest products, with the best value non-branded products sales increasing 46% from a year ago. Earlier this month all the main grocers cut the price of milk, as they pass on some deflation to consumers. The price of a pint of milk has fallen to 90 pence from 95 pence and two pints have been cut to £1.25 from £1.30. Tesco said it has seen cost price deflation in milk, while Asda said it took “swift action” as “commodity prices have eased.” Read more: Britons Flock to Discount Grocers as Food Inflation Persists - BNN Bloomberg #smartdiscount #lidl #aldi #growth #inflation #pricing #marketshare #expansion #kantar #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting

Discount Retail Chain Aldi Süd (German family owned) will exclusively bring its own apple variety from the Altes Land to its stores. Customers can now vote on the name and win great prizes. Juicy, crunchy, sweet in taste and bright red: this is what makes the new apple variety of German origin, which will be available exclusively in all more than 2000 ALDI SOUTH stores from October 2023. The new variety was developed by the Niederelbe Breeding Initiative (ZIN) in cooperation with the Osnabrück University of Applied Sciences. So far, however, the new apple does not have a name. For this reason, ALDI SOUTH organised a voting on its website aldi-sued.de/deinapfel to select between two name proposals ´RoyALDI´ and ´ALDIamo´. COOPERATION WITH THE OSNABRÜCK UNIVERSITY OF APPLIED SCIENCES Together with the Osnabrück University of Applied Sciences, the Lower Elbe Breeding Initiative has been working on the perfect apple for more than twenty years. "We select the parent varieties specifically and can cross varieties with ideal conditions with each other and thus breed the ideal apple," explains Prof. Dr. Werner Dierend from the Faculty of Agricultural Sciences and Agricultural Architecture at Osnabrück University of Applied Sciences. ALDI SOUTH joined as a partner in autumn 2019. "With the ALDI SOUTH apple, we can offer our customers a very special product that is convincing in terms of taste and quality on the one hand, but on the other hand offers suppliers and producers long-term planning security," emphasises Erik Döbele, Managing Director National Buying & Services at ALDI SOUTH. THE ALDI SÜD APPLE - A SPECIAL STORY The Altes Land is the largest contiguous fruit-growing area in Northern Europe and offers ideal conditions for the growth of the new variety. "25 years ago, the breeding initiative decided that we had to breed new varieties again in the Altes Land and this year the new variety will be harvested for the first time and sold at ALDI SOUTH. This is a very special story for us and of course makes us very proud," explains farmer Ulrich Buchterkirch. Read more: Aldi Süd startet mit erster eigener Apfelsorte ‹ Fruchtportal #smartdiscount #apple #germany #aldi #assortment #privatelabel #ownbrand #development #fresh #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting

Retailing is a difficult business even in ordinary times, but the past 15 months have been unusually unpredictable. In the first half of 2022, inflation skyrocketed to an annualized rate of 9.1%, propelled by supply chain disruptions, a tight labor market, and aggressive fiscal stimulus during the pandemic. Gross domestic product (GDP) declined for two consecutive quarters, raising fears of recession. Then in the second half, conditions reversed: Year-over-year inflation has gradually decreased every month since June, while GDP grew in both the third and fourth quarters. The outlook for the rest of this year remains highly uncertain, particularly given the recent turbulence in the banking sector, and with first-quarter GDP estimates varying widely. On the positive side, supply chain pressures have eased and commodity costs have dropped. But retail demand is waning. February and March retail sales declined as depleted savings and higher prices left consumers wary. What market volatility means to the retail industry It is never easy to predict whether a recession is looming. But whether or not the economy meets the technical definition, continued market volatility and softer consumer demand appear inevitable, even as their depth, scope, and duration remain unclear. While experts anticipate inflation returning to more normal levels within 12–18 months, this could come at the cost of further reduced demand and increased unemployment, given the monetary tightening that has already taken place and any further actions this year. The upshot: any slowdown from here is likely to impact industries and consumer sectors unevenly, so retailers must prepare for a multitude of scenarios. Strategies for retailers to pass savings to customers During economic downturns, the flight to value is relentless, and retailers that persistently offer strong value propositions to consumers often thrive. Our latest annual Customer Perception Map survey in the United States reveals that the relative importance of price versus offer (including choice, quality, and service) has reached its highest level in more than a decade. Out of more than 30 drivers of overall customer satisfaction, "overall value for money" rose to second place from ninth in our most recent research. Retailers can lower their costs, and pass those savings on to customers, through four strategies. 1. Negotiate smarter After two years of supplier dominance amid supply chain shortages, retailers now have the opportunity to take the offensive. They should target pre-2021 levels, since the costs of many underlying commodities are rapidly decreasing. Retailers can use technology in three ways to proactively negotiate with suppliers. First, they can track the evolution of underlying commodity costs for the products they sell to identify and prioritize opportunities and determine the “ask.” For example, the ingredients that drive the cost of a frozen pizza are wheat, tomatoes, cheese, corrugate, freight, marketing, manufacturing, and overhead costs. The 50% decline in the price of wheat from its peak in mid-2022, along with changes in other inputs, should be reflected in a cost decrease of at least 10% for frozen pizza. Second, retailers can examine the broader vendor relationship and determine the right tactics to employ “in the room” — how incremental is this brand to my assortment / how loyal are customers to those products? What would happen to the category and vendor X's business if we were to give vendor X more space, or took it all away? What is that worth? Third, retailers can organize a company-wide negotiation campaign to go after the value and set up the right process to track and win opportunities. 2. Personalize and deliver targeted value Retailers can take advantage of digital technologies to deliver value to the customers who need it most, using localization and personalization. Investments in these technologies will yield dividends throughout a recession and beyond. For example, store zoning and dynamic pricing, which had been threatened by more omnichannel solutions, are becoming more viable with geo-based updates of online prices. Likewise, personalized digital offers can save a lot of promotional spending by not giving certain offers to customers who would buy those items anyway, and encouraging trial or trade-up by targeting the right customers with the right products at the right time. And dynamic displays and location-based promos for shoppers can improve the in-store experience. 3. Automate to the right-size Now is the time for retailers to assess their organization's size and structure, identifying redundancies that can be eliminated to reduce costs. Digital solutions will enable retailers to do more with fewer resources or reassign talent to higher value-added activities. For example, they can provide better visibility across the supply chain to unlock new sources of value, and automate time-consuming, repetitive tasks in the head office, manufacturing plants, distribution centers, and stores. And digital solutions can augment decision-making by bringing new insights powered by sophisticated machine learning and AI. 4. Evaluate and enhance financial services offerings Retailers should consider how they can reduce payment costs and improve value propositions for economically strained consumers. Opportunities for optimizing relationships with payment partners are abundant, including reducing the cost of accepting payments, encouraging incremental sales via new methods such as buy now, pay later, and streamlining customer shopping experiences both in-store and online. The bottom line for retailers: Deliver outsized value to win customers Consumers and their wallets are already weary from prolonged high inflation — and there’s more uncertainty ahead about macroeconomic trends in the coming months and the Fed’s response. As this uncertainly unfolds, for however long it lasts, we can learn from past downturns and periods of turbulence: customers will vote with their wallets for the retailers who offer the best value for their money. Retailers should prioritize initiatives that drive better value for their customers. Source: Oliver Wyman

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