Discount retailers expand market share
Published:  23 September, 2015

Latest grocery share figures from Kantar Worldpanel have revealed a strong 12 weeks ending 13 September for value-for-money retailers.

Aldi performed well, with a growth in sales of 17.3%, expanding its market share to 5.6%. Lidl also saw a positive 12 weeks, after increasing sales by 16% to reach a new market share high of 4.2%.

The supermarkets are increasingly strengthening their share of the market, with 56% of British households visiting either Aldi or Lidl in the past 12 weeks, according to Kantar Worldpanel.

Additionally, Iceland saw sales grow 3.4%.

However, general supermarket growth has remained immobile at 0.9%, resulting in this being the sixth consecutive month that grocers’ sales have progressed by less than 1%.

Out of the ‘big four’ retailers, Sainsbury’s was the only one to keep pace with the market, largely attributed to its ‘twist your favourite’ recipes.

“Sainsbury’s has grown sales by 0.9% compared with a year ago, attracting 250,000 new shoppers through the door in the last 12 weeks,” explained Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel. “The retailer has held its share steady at 16.2%, helped by the continued expansion of its Sainsbury’s Local outlets.”

Tesco still holds the largest share of the market, trailed by Asda, despite both supermarkets experiencing a decrease in their hold.

Morrisons also saw a fall in sales, while sales at The Co-operative and Waitrose both increased by 1% and 2.9% respectively.

“Tesco has also increased revenues through its Express convenience stores, although overall sales fell by 1% and market share dropped by 0.6 percentage points to 28.2%. Sales at Morrisons decreased by 1.4%, taking share to 10.7%, with this likely to fall further in the coming months as the recently announced store closures take effect.”

McKevitt also highlighted that consumers’ change in shopping habits was likely to alter figures in the future. “With shoppers moving their custom away from the traditional, larger-size supermarket stores, online sales are continuing to boom and are up 12% compared with a year ago.

“Almost 7% of grocery sales are currently purchased through the internet and existing online supermarkets will be watching closely to see when Amazon Fresh will launch in the UK and whether it will steal market share or grow the online market even further.”

Graph provided by Kantar Worldpanel