Aldi and Lidl are Britain’s fastest-growing supermarkets

Aldi and Lidl became the UK’s fastest-growing supermarkets in the final weeks before Christmas, according to new figures.

Aldi’s market share rose to 6.8% in the run-up to Christmas (Photo: Wiki)

Sales rose by 16.8% at both German grocers, while Tesco is still the fastest growing Big Four supermarket, with revenue up 3.1% in the last 12 weeks before Christmas, according to the latest results from Kantar Worldpanel.

Overall supermarket sales increased in value by 3.8%, with Brits spending a almost £30bn in the last 12 weeks before Christmas, an extra £1bn compared to the same period last year.

Tesco was the biggest performer in the Big Four, followed by Asda, which saw sales rise by 2.2%.

But both were outstripped by challenger duo Lidl and Aldi. Aldi’s market share rose from 6% to 6.8% in the final three months of the year, while Lidl now holds 5%.

Alcohol sales grew by 5.1% year on year, with spirits leading the charge: up 7.6% as consumers opted to invest in premium gins and whiskeys.

“In some ways Christmas is a tricky time for the discounters,” Kantar analyst Fraser McKevitt said.

“They tend to lose a little market share compared to earlier in the year as many shoppers return to the more traditional supermarkets in search of old favourites.

“Rising to the challenge, Aldi and Lidl collectively managed to attract nearly one million additional households during the past three months.

McKevitt said that Aldi’s success came in-part from its premium food and drinks products, with 39% of shopping trips including at least one product from its Specially Selected range.

Meanwhile, Lidl grew market share by 0.6 percentage points to stand at 5.0%, helped by a 22% sales increase in the dairy aisle and a £23 million boost from fresh produce.

“Shoppers are splashing out despite fewer promotions to tempt them,” McKevitt said. “Only 36% of spending was on items on offer this year – the lowest level of promotional activity at Christmas since 2009.  Consumers are still facing more expensive groceries: like for like prices rose by 3.7% in the 12 weeks to 31 December, a slight increase on the 3.6% rise reported last month.”

 

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