Aldi and Lidl see market share rise

Sep 16 2008

Discount supermarkets have achieved further market share gains as customers respond to “low-price messages”, industry research showed today.

Operators Aldi, Lidl and Netto saw their combined market shares rise to 6% during the past 12 weeks, up from 5.6% a year ago, TNS Worldpanel said.

Frozen food chain Iceland also enjoyed sales growth of 12.9% during the period to September 7, to take its market share up 0.1% to 1.7%.

And Asda, which trades on its low-price image, saw its market share reach a record 17.3%, up from 17%. The retailer announced a new round of 5,000 price cuts today in the latest battle with rivals for business.

In more evidence of consumers targeting bargains, top-end grocer Waitrose saw its market share fall from 3.9% to 3.8%. And shares for Tesco and Sainsbury’s both slipped 0.2%, to 31.5% and 15.8% respectively.

TNS research director Ed Garner said shoppers were responding to “low price messages” amid pressure on household budgets from soaring inflation.

He said: “Once again, younger larger families are responding to the squeeze on their housekeeping by driving discounter turnovers up.”

Mr Garner added: “In the current climate it is perhaps inevitable that Waitrose has come under pressure with growth held back to 3.2% year-on-year resulting in the share dipping by 0.1 points to 3.8%.”

Aldi saw sales grow 20.8% during period to September 7, the data showed, with Lidl 11.1% ahead.