Discounters’ share of UK grocery market surges
Soaring food inflation is driving more British consumers to turn to discounters and own label lines, according to a recent study by Kantar Worldpanel. Grocery price inflation rose by 17.3% in the four weeks to 16 April 2023, down marginally on the 17.5% in the previous month. Take home grocery sales grew by 8.1% over the month to mid-April.
Aldi and Lidl achieved new record market shares over the latest 12-week period (10.1% and 7.6% respectively). Aldi’s share of 10.1% of the market is up from 5% eight years ago. Lidl was the fastest growing grocer with sales increasing by 25.1%, while Aldi is just behind on 25.0%. Consumers are continuing to shop around, visiting at least three major retailers every month on average.
Meanwhile, own label lines, which are often cheaper, are still growing at 13.5% this period suggesting shoppers are finding better value for money on these shelves, Kantar said.
“The very cheapest value own label lines are doing even better, with sales soaring by 46% versus a year ago. These products now find their way into nearly one in five baskets. Branded sales are going up but more slowly at 4.4%,” Kantar said.
Kantar believes that grocery inflation will come down soon, but that’s because the company will start to measure it against the high rates seen last year. “It’s important to remember, of course, that falling grocery inflation doesn’t mean lower prices, it just means prices aren’t increasing as quickly,” the company said.