Discounters Aldi and Lidl hit record grocery market share

Discounters Aldi and Lidl saw their combined share of the grocery market rise to a record high of 10.5% in the 12 weeks to 19 June, while the UK’s big four supermarkets saw a drop in market and the overall market slipped into decline for the first time since January.

Supermarket sales fell by 0.2% in the period, as like-for-like grocery prices dropped 1.4% on last year, according to the latest grocery share figures from Kantar Worldpanel.

Kantar’s head of retail and consumer insight, Fraser McKevitt, said: “While these latest figures predate the EU referendum result, the immediate economic uncertainty is unlikely to cause a substantial fall in grocery volumes, as demonstrated by the 2008 financial crisis when basic food, drinks and household sales proved resilient.

“With an estimated 40% of the food we consume sourced from overseas, any long term change in exchange rates may threaten the current period of cheaper groceries. Historically, higher prices have led to consumers looking for less expensive alternatives such as own-label products, seeking out brands on promotion or visiting cheaper retailers.”

Lid’s market share was 4.4% while Aldi had 6.1% of the market, with 58% of Britons visiting one of the two in the last 12 weeks. Sales at Lidl and Aldi rose 13.8% and 11.5%, respectively.

Sales at Tesco fell by 1.3% on the year and its market share slipped to 28.2% from 28.6. Meanwhile, Sainsbury saw sales fall 1.4% and its market share drop to 16.3% from 16.5%.

Sales at Wm Morrison were down 2.4% as its market share nudged down to 10.8% from 11%, while sales at Waitrose rose 1.3% and its market share nudged up to 5.2% from 5.1%.

Wal-Mart owned Asda was the standout loser, with sales down 5.9% and its market share at 15.6% from 16.5% for the comparable 12 weeks.