Germany’s budget food retailers Aldi and Lidl are crushing British supermarkets.
According to the latest figures from research firm Kantar Worldpanel, Lidl’s market share hit a record high of 3.9%, for the 12 weeks ending May 24, up from 3.6%. This was thanks to an 8.8% growth in sales.
Similarly, Aldi’s sales rocketed by 15.7%, taking its share of the market to 5.4%. That’s up from 5% from the previous period.
Meanwhile, Morrisons was the only one of the big four British supermarkets to have increased sales during the period. However, although Morrisons’ return to growth was applauded by Kantar Worldpanel, it’s worth noting that its market share remained unchanged at 10.9%.
“All of the major supermarkets are finding growth difficult as prices have been declining since September 2014,” said Fraser McKevitt, Head of Retail and Consumer Insight at Kantar Worldpanel in a statement.
“Yet while like-for-like groceries are 1.9% cheaper than this time last year this is not as steep a fall as last month, when prices were down by 2.1%. This means that if current trends continue, prices will once again start rising by the end of the year.”
Sainsbury’s sales fell by 0.3% during the period and just about held onto its 16.5% market share. Tesco sales decreased by 1.3%, with its market share inching lower by 0.4 percentage points to 28.6%.