Aldi, Lidl surge ahead in UK amid tight economy: Kantar

18 July 2012 (Last Updated July 18th, 2012 07:00)

Discount retailers Aldi and Lidl have seen remarkable growth over the last three months amid a tight squeeze on consumer spending, according to the figures released by Kantar Worldpanel.

Discount retailers Aldi and Lidl have seen remarkable growth over the last three months amid a tight squeeze on consumer spending, according to the figures released by Kantar Worldpanel.

Once again, both the retailers achieved all-time record shares of 2.9% and growth of 26.1% for Aldi and 11.5% for Lidl.

Kantar Worldpanel director Edward Garner said they are seeing big cutbacks by consumers as they continue to respond to this current period of austerity.

"The success of the discounters, Aldi and Lidl, is a clear example of shoppers watching their purses, with both retailers continuing to surge ahead," Garner added.

In the 12 weeks ended 8 July 2012, the grocery market growth rate fell back to 2.1% compared with 4.2% a year ago.

Grocery price inflation stood at 3.8% - a considerable decline from 6.2% which occurred as recently as November 2011.

British grocery retail chain Waitrose is still growing at over double the rate of the whole market, this growth has fallen back to 4.8% from 7.5% last period.

Among the big four supermarkets, fortunes continue unchanged with Asda and Sainsbury's reporting market share growth.

Tesco holds market share of 30.7%, a drop compared to last year's 31.1%, while Morrisons has seen a 0.2% decline in market share, now at 11.9%.

"Another sign of austerity making an impact is the decline of the premium own label sector," Garner said.

"Premium own-label products have been in continuous growth since 2008, despite often being more expensive than their brand equivalent.

"Now; however, they are declining by 6% year-on-year, while economy own labels such as Tesco's Everyday Value are growing at 13%.

"Frozen food continues to be the top-growing food sector, as consumers look to reduce waste, and this has helped Iceland to continue the upward trend it has enjoyed since 2005."