Aldi and Lidl reach 10 per cent share of UK grocery market for first time

Discount supermarkets Aldi and Lidl’s combined share of the UK grocery market has reached 10 per cent for the first time.

The new figures illustrate the rapid growth in discount retail, with the continental grocers’ market share doubling since 2012.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “In the last 12 weeks the two retailers have attracted another additional million shoppers compared with last year while average spend per trip has increased by 4 per cent to £18.85, which is 78p ahead of the total retailer average.”

Lidl’s market share reached a new record high of 4.4 per cent, increasing by 0.7 percentage points on last year thanks to a sales growth of 19 per cent. Aldi grew sales by 16.5 per cent, keeping its market share at 5.6 per cent for the fifth consecutive month.

Despite the ever more high-profile Christmas advertising campaigns launched by the supermarkets in recent weeks, the overall market remains slow. Sales were only up by 0.5 per cent, held back by persistently falling prices which remained down by 1.7 per cent on a like-for-like basis.

However, Sainsbury’s has seen a 1.5 per cent increase in sales, the first share gain registered by any of the ‘big four’ retailers since October 2014 and pushing ahead of Asda in the last 12 weeks.

But sales fell at Tesco, down by 2.5 per cent, and Morrisons also saw a 1.7 per cent fall.

Waitrose and the Co-operative saw sales increase by 2.7 per cent and 1.5 per cent respectively - the Co-operative’s small market share gain of 0.1 to 6.3 per cent is its first year-on-year share gain since 2011, when the benefits of the Somerfield acquisition were still being felt.

Mr McKevitt added: “The discounters show no sign of stopping and with plans to open hundreds of stores between them, they’ll noticeably widen their reach to the British population.”