Budget grocers Aldi and Lidl are killing the competition by introducing premium products

German supermarkets Aldi and Lidl may be known for their cheap groceries, but it is their premium products which are smashing the competition right now.

“Premium own label sales grew by 6.6% in the past 12 weeks,” according to consumer research group Kantar, “well ahead of the overall grocery market.

“Aldi and Lidl are leading the way, growing their premium lines more than twice as quickly as the rest of their ranges.”

The report added that shoppers have enjoyed more spending power in recent months, with prices 1.5% lower than they were last year.

Deluxe ranges at Lidl include spatchcock duck, outdoor bred pork belly and lemon & raspberry semifreddo dessert.

Lidl retained its place as the UK’s fastest growing supermarket, increasing sales by a massive 17.7% to capture 4.4% of the market.

Aldi, meanwhile, grew sales by a similarly huge 14.4% to reach a personal best market share of 6%.

Morrisons saw sales fall by 2.4% — which was still an improvement on last month — showing that competition from Aldi and Lidl is still hurting its brand.

Sainbury’s and Asda area almost level with market shares of 12.6% and 12.5% respectively, while Tesco still has the biggest with 21.6%

Ronny Gottschlich, Lidl UK CEO, said the supermarket’s growth showed it now catered to all shopping needs:

“With almost 40 million customer transactions in the four weeks leading up to Easter, Lidl has become the supermarket of choice both for the regular shop and the most important meals of the year for an increasing number of British consumers.

“To meet customers’ strong and fast-growing appetite for our ‘best quality for the best price’ offering, we are strategically investing in both store refurbishment and new openings as well as the introduction of fresh and exciting products. We now have 630 stores in the UK and are on track to open up to 50 more by the end of the year.”

Fraser McKevitt, head of retail and consumer insight at Kantar, said that Easter had a been good for all major supermarkets, who sold £152 million ($216 million) more goods overall than last year:

“Britain’s love of all things sweet was in evidence, with 63% of households buying at least one chocolate egg during March, spending an average of £12 over the month. Over half of the population bought hot cross buns, while 15% purchased a fresh leg of lamb for their Easter celebrations.”

The Telegraph reported last year that Aldi and Lidl came out on top in taste tests, suggesting that a budget price bears no relation to how much consumers enjoy their products.

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