Budget supermarkets are seeing huge growth as a result of the cost-of-living problem, whilst more costly chains are finding it difficult to keep their clientele.
Aldi and Lidl made a combined total of £5.5 billion in sales in the 12 weeks leading up to January 22, 2023, according to new retail statistics from data analytics company Kantar, up by a quarter from the same time last year.
Waitrose is having trouble retaining customers for its more expensive products. Waitrose’s three-month takings actually decreased by 2.3% over the previous year and by 0.6% over two years despite inflation.
Morrisons likewise had a -1.9% year-over-year reduction, but what was more startling was the 10.2% decline from the year before. In reality, Aldi overtook Morrisons in 2022 to become the country’s fourth-largest supermarket; it currently holds 9.2% of the market share, a rise of 1.4 percentage points from January 2022.
Though it increased its market share by 0.9 percentage points, Lidl, which is still in sixth position, witnessed the most growth. The German retailer recently revealed that its fruit and veg currently has a 10.2% market share and that in January it witnessed £11 million in sales from individuals transferring away from M&S, Waitrose, and Sainsbury’s.
Kantar’s Grocery Market Share data is derived from the Worldpanel division’s research covering the grocery purchasing habits of a number of demographically representative households in Mainland China, France, Great Britain, Ireland and Spain. All data is based on the value of items being actually purchased by these consumers.