Discounter Aldi became the UK's fastest growing food retailer in the last year.
Aldi has increased its market share by 0.6% and recorded year-on-year sales growth of 12.4% to become Britain’s fifth largest supermarket, according to the latest grocery market share figures from Kantar Worldpanel.
The German retailer overtakes The Co-operative, which, despite managing to increase its sales by 2%, has fallen to sixth place. Morrisons, in fourth place, was the fastest-growing retailer of the traditional ‘big four’ retailers, increasing its market share by 1.9%. It is a full 4.7% ahead of Aldi in fifth.
The market grew faster than it did in 2016, Kantar Worldpanel said, with supermarket sales up 1.7% on last year: eight of the nine major retailers saw positive sales growth during the past 12 weeks, with Asda the only supermarket to post a decline. Its sales fell 1.9% last year, but it has managed to increase the number of shoppers visiting its stores.
Fraser McKevitt, head of retail and consumer insight for Kantar Worldpanel, said: “Just a decade ago Aldi was the UK’s tenth largest food retailer, accounting for less than 2% of the grocery market. Since then the grocer has grown rapidly, climbing the rankings by an impressive five places to hold a 6.2% market share. Underpinned by an extensive programme of store openings, the past quarter has seen Aldi attract 826,000 more shoppers than during the same period last year.
“Despite being overtaken by Aldi, Co-op’s 2% sales increase was well ahead of the market, continuing a run of growth stretching back to July 2015. A significant own label sales increase of 7% was behind the strong performance, with healthier ranges successfully catering to consumers’ good intentions for the new year.
“Not all shoppers were convinced by the health message though: while overall sales of healthy own label lines increased by 3%, a dry January was certainly not on the cards for many of us – sales of beer increased by 4% over the past 12 weeks, with wine up by 1% over the same period.”
“Meanwhile rising prices – which we saw at Christmas for the first time since 2014 – have continued into the new year, with like-for-like inflation on a basket of everyday groceries climbing to 0.7%. If prices continue to rise at the same rate for the rest of 2017, shoppers will find themselves around £27 worse off.”
Waitrose, Lidl and Iceland all continued to grow. Boosting sales by 3.4%, Waitrose increased its share of the grocery market to 5.3%, while Iceland – up 8.6% year on year – saw sales growth for the tenth consecutive period. A 9.4% year on year sales increase for Lidl buoyed the retailer’s market share by 0.3 percentage points, leaving the discounter holding 4.5% of the UK grocery market.
© FoodBev Media Ltd 2017