The UK’s major supermarkets have not been having it their own way for some time now. As consumers seek better value for money, the stage has been set for discounters to thrive. A study published by Global Data estimated that while the UK grocery market is expected to grow by 15% to £174.5 billion by the end of 2024, the so-called ‘Big 4’ grocers are set to lose £1.9bn (1.1%) market share to their discounter rivals. The study also found that supermarkets will likely see 12.6% growth by 2024, while discounters will grow by 25% and online pureplays by 55.1%.
Speaking to Retail Gazette, GlobalData retail analyst Thomas Brereton said, “The recent set of supermarket Christmas trading results shows that UK shoppers still have an unsatisfied appetite for the proposition of the discounters; Lidl performed especially admirably, growing year-on-year sales 11 per cent in December. While there is evidence of a slowdown in like-for-like sales growth at Aldi and Lidl, both retailers still have substantial expansion plans for the UK – particularly within the M25 – over the next few years.”