The latest market share figures from Kantar show that Aldi’s consumer spend was up 11.1% from the 12 weeks to 20th May 2018 to the 12 weeks to 19th May 2019, making it the fastest growing supermarket, attracting nearly one million more households compared with last year.
Commenting on Kantar’s findings, Giles Hurley, CEO of Aldi UK & Ireland, said: “May was another strong month; we continued to grow sales faster than any other supermarket as customers switched to Aldi, attracted by unbeatable prices on everything from Rattan furniture to our award-winning Specially Selected Brioche Burger Buns.”
Kantar found that Aldi and Lidl are worth a collective £344 million more than this time last year and reached a combined record market share of 13.8% this period.
Chris Hayward, consumer specialist at Kantar, said: “The discounters continue to attract customers with nearly one million more households visiting Aldi compared with last year and an additional 630,000 shopping at Lidl.
“Around 75% of growth at both supermarkets is coming from the ambient and chilled aisles as people opt for value in a greater proportion of their basket.”
This time last year, the UK experienced the hottest May since records began and enjoyed major events like the royal wedding and FA Cup final.
Hayward said: “We would expect this period to be challenging for all grocers when comparing year-on-year performance.
“Growth of 1.3% may appear modest when compared with last year’s 2.7%, however, the sector continues to demonstrate resilience and volume sales remain unchanged from last year.”
Tesco recorded market share of 27.3% and sales were supported by the performance of its own label ranges.
Hayward explains: “While Tesco’s overall sales were flat, its performance was the strongest out of the big four during the past 12 weeks.
“Looking ahead, the supermarket will be hoping the decision to make lines from its Jack’s discount arm available in store throughout May will pique customers’ interest and generate incremental sales.”
Waitrose experienced marginal growth of 0.1% during this period and its new Good Health range is one of the fastest growing own label lines across the major retailers, with sales totalling £13.4 million.
Aside from Aldi and Lidl, Co-op delivered the strongest bricks-and-mortar sales growth of 3.7%.
Hayward comments: “Shoppers are clearly enjoying their experience in store at Co-op and have increased their number of trips by 5% in the past 12 weeks.
“New promotions like its frozen meal deal have also proved popular at the convenience store and sales of frozen pizza and frozen chips are up 27% and 24% respectively during the past 12 weeks.”
Meanwhile, Morrisons remains Britain’s fourth largest supermarket with market share of 10.4% down from 10.5% this time last year.
Sainsbury’s / Asda
With the CMA ruling against the proposed merger now behind them, Asda and Sainsbury’s are neck and neck in the number two position this period as overall sales at Asda fell 0.2% despite online growth of 10.7%.
Sainsbury’s market share has fallen 0.5 percentage points to 15.2% as it nears its 150th birthday.
Hayward said: “Sainsbury’s is approaching its own anniversary a bit differently from rival Tesco – as well as reflecting on the past 150 years and including the Queen in celebrations, it is also looking forward and championing smaller brands with its Future Brands initiative.
“Sainsbury’s will be hoping that this strategy, combined with an increased level of promotions in recent months, will help win shoppers back.”