The latest data reveals contrasting fortunes for discounter chains Lidl and Aldi, highlighting shifts in supermarket dynamics.
- Lidl’s sales rose by 8% in a 12-week span, surpassing Aldi, which saw a 1% decline.
- Despite both discounters attracting new shoppers, their average spend per visit has dropped compared to last year.
- Ocado and M&S have shown significant sales growth, leaving them ahead in market share compared to some competitors.
- Grocery sales have begun to slow, influenced by factors like weather conditions and previous high inflation levels.
Lidl continues to strengthen its position in the discount retail sector as its sales surged by 8% over the 12 weeks to 15 June, according to data from NIQ. In contrast, Aldi experienced a 1% dip in revenue as it faced stiff competition against its previous year’s performance, which was the highest amongst retailers.
This change has impacted Aldi’s market share, reducing it from 10.8% to 10.4%, while Lidl increased its share from 7.2% to 7.6%. This underscores the dynamic nature of the competitive supermarket landscape as both chains continue to draw new customers, yet see a decline in the average expenditure per visit compared to last year.
Mike Watkins, head of retailer and business insight at NIQ UK, noted that as market share growth for discounters stabilises, future advances will rely on opening new stores and boosting visit frequencies. This becomes essential to offset spending shifts seen during the period of high inflation, now gradually redirecting back to traditional supermarkets.
Amid these fluctuations, Ocado and M&S have notably excelled, with Ocado’s sales climbing 12.6% and M&S witnessing a 7.1% rise, strengthening their market shares to 1.7% and 3.8% respectively. Sainsbury’s and Tesco have shown steady progress as well, each boosting sales by 4.7% and 4.1%, resulting in market share gains.
On the downside, Asda lagged behind with a 4.9% decrease in sales, dropping its market share by one percentage point to 12.2%. This downturn comes amidst a broader deceleration in supermarket sales, which saw a mere 1.1% increase in the last four weeks compared to a 12.1% surge during the previous year’s corresponding period.
As competition intensifies amidst shifting consumer patterns, supermarket giants and discounters alike must adapt to maintain growth.
