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Lidl is UK’s fastest growing supermarket for the fifth consecutive quarter

New figures on the grocery market have shown that Lidl was the UK’s fastest growing supermarket for the fifth quarter in a row in the 12… View Article

FOOD AND DRINK NEWS UK

Lidl is UK’s fastest growing supermarket for the fifth consecutive quarter

New figures on the grocery market have shown that Lidl was the UK’s fastest growing supermarket for the fifth quarter in a row in the 12 weeks to 5 November.

The data from Kantar Worldpanel reveals that some 10.6 million households visited Lidl at least once during the past three months, boosting the grocer’s market share by 0.5 percentage points to 5.1%. The supermarket’s sales were up 15.1% in the period.

Meanwhile, Aldi attracted 11.9 million households and increased its sales by 13.1%. This meant its market share rose to 6.7%.

Kantar’s figures also show that supermarket sales increased in value by 3.2% year-on-year in the 12 weeks.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “Volume sales have increased by less than 1%, meaning it’s price rises keeping supermarket performance buoyant. Like-for-like grocery inflation now stands at 3.4% – its highest level since November 2013. With the average shop currently costing £18.26, consumers are now paying an extra 62 pence each time and over the course of a year it could add £143.70 to a typical family’s grocery bill.” 

Sainsbury’s grew its sales by 2.6% and attracted an additional 364,000 shoppers to become the fastest growing among the big four supermarkets for the first time since April 2016.

McKevitt said: “Brands were the fastest-selling products at Sainsbury’s during the past 12 weeks – particularly in soft drinks and dairy – flying in the face of the market’s focus on own-label lines. The grocer’s strongest growth came from both its Local convenience stores and online sales. Despite a positive quarter, Sainsbury’s market share fell back by 0.1 percentage points year on year to stand at 16.2%.”

Tesco welcomed 76% of British households during the past 12 weeks and grew its sales by 2.3% as its market share dipped to 28%. This was down 0.2 percentage points on last year.

Morrisons saw sales increase by 2.1%, accompanied by a marginal fall in share – from 10.5% last year to 10.4% during the latest quarter.

Meanwhile, Asda enjoyed its eighth consecutive period of growth – the longest run of sales increases the retailer has seen since March 2014. Kantar said cheaper and more premium own label lines helped to increase overall sales by 1.5% year-on-year.

Sales at Iceland edged up 1.1% although its share fell slightly to 2%. Nearly half of the retailer’s growth came from categories outside its core frozen ranges, such as alcohol, which grew by 23% thanks to increased listings of wine, lager and cider.

Fraser McKevitt added: “Amid news that Nisa’s shareholders have backed Co-op’s takeover of the group, there is plenty of room for growth: convenience stores in all their forms currently account for 12.1% of grocery sales. Nearly 60% of UK households currently visit this type of retailer, spending £3.2 billion in smaller stores during the past 12 weeks. Co-op is already the nation’s most frequently visited grocer – shoppers pop in almost twice a week on average – despite having seen sales fall by 1.5% compared to the same period last year.” 

Waitrose held its market share steady year-on-year at 5.3% with sales growth across the board from convenience stores, larger supermarkets and online.

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