Britain’s incumbent supermarkets are seriously suffering at the hands of German budget grocers Aldi and Lidl.
The latest data from research group Kantar Worldpanel reveals that for the 12 weeks ending 21 June 2015, the overall grocery market slipped into decline.
Kantar says Tesco and Sainsbury’s sales both fell by 1.3% — chipping off market share for both.
Britain’s biggest supermarket Tesco’s market share fell to 28.6%, from 28.9% in the same period last year. Sainsbury’s market share also decreased by 0.2% to 16.5%,
Asda also saw sales fall by 3.5%, causing it to lose a massive chunk of its market share. Asda’s slice of the market fell to 16.5%, compared with 17.1% last year. Out of the incumbents, only Waitrose grew ahead of the market, with sales increasing by 1.2%, moving to a 5.1% share.
Meanwhile, Aldi and Lidl are steaming ahead. Kantar’s Head of Retail and Consumer Insight Fraser McKevitt specifically highlights the power of the German discounters, who are are disrupting the British grocery sector.
“Aldi and Lidl showed no signs of slowing down and are continuing to take share away from the competition,” says McKevitt. “The two discounters increased their sales by 15.4% and 9.1% respectively. Aldi reached a new high with a 5.5% share of the market while Lidl, also showing continued growth, rose to 3.9%.
This is down to Aldi and Lidl’s super discounted prices, which have caused a price war in Britain. Kantar says that groceries are now 1.7% cheaper compared with a year ago and prices have continued to fall since September 2014.
Even Ocado, the “Amazon of food”, revealed today that although its revenue surged by over 18% for the 24 weeks ending May 17, its profits fell due to the ongoing price wars in the grocery sector.
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