Home Money Lidl overtakes Aldi in the battle for bargain hunters with sales up almost 10% on last year

Lidl overtakes Aldi in the battle for bargain hunters with sales up almost 10% on last year

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Takes the cake: Lidl sales in the three months to May 12 were 9.4% higher than the same period last year

Takes the cake: Lidl sales in the three months to May 12 were 9.4% higher than the same period last year

Lidl gained record share of the grocery market this spring, while archrival Aldi lost ground.

As a fierce battle for customers rages, figures showed Lidl’s sales in the three months to May 12 were 9.4 per cent higher than the same period a year earlier.

That gave it a market share of 8.1 percent, the highest level on record for the German discounter and up from 7.7 percent a year ago.

By contrast, Aldi’s sales rose just 2.2 percent and its market share fell from 10.1 percent to 10 percent, although since September 2022 it has replaced Morrisons as Britain’s fourth-largest supermarket. .

Kantar, which published the data, attributed Lidl’s rise to success on its bakery counters, where fresh bread, cakes and pastries were in high demand.

Discounts through their app also proved popular.

Jonathan De Mello, founder of consultancy JDM Retail, said he believed Aldi was a victim of its excellent performance last year.

“It will always be more difficult to surpass the level of growth they achieved before,” he said.

“Lidl had good growth last year, but it was nowhere near Aldi’s.”

And price cuts at supermarket giants Tesco and Sainsbury’s – in a bid to compete with the runaway success of Aldi – have meant competition for cash-strapped shoppers has increased.

Britain’s largest supermarket, Tesco, increased its share to 27.6 percent from 27.1 percent a year ago, and the second largest, Sainsbury’s, rose from 14.8 percent to 15.1 percent. hundred.

Trouble continued at two privately held grocers, Asda and Morrisons, with both losing market share despite launching cheaper products to compete with discounters.

The price returns to normal

Prices in supermarkets are rising at the slowest pace in two and a half years.

Industry research group Kantar said food price inflation has fallen for the 15th straight month to 2.4 percent.

It is now just 0.8 percentage points above the ten-year average of 1.6 percent between 2012 and 2021, just before prices started rising.

Kantar’s Fraser McKevitt said: “Food price inflation is gradually returning to what we would consider more normal levels.”

“However, after years of rapidly rising prices, it may take longer for buyers to shake off the habits they’ve learned to help them manage the cost of living crisis.”

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