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Insight: Lidl becomes the UK’s seventh largest supermarket

New figures on the grocery market have shown that Lidl has increased its market share to a new record high of 5.2% to become the UK’s seventh largest grocer.

FOOD & DRINK

Insight: Lidl becomes the UK’s seventh largest supermarket

New figures on the grocery market have shown that Lidl has increased its market share to a new record high of 5.2% to become the UK’s seventh largest grocer.

Figures from Kantar Worldpanel for the 12 weeks ending 13 August reveal that ten million households visited Lidl’s stores during the period with alcohol and fresh produce performing particularly well as the retailer increased sales by 18.9% overall.

Fraser McKevitt, head of retailer and consumer insight at Kantar Worldpanel, said: “Lidl is growing sales 40% faster with families than with households without children. Families tend to buy more items each time they shop, so strong growth with this demographic has helped Lidl to increase its average basket size year on year.”

Meanwhile, Aldi grew its sales by 17.2% as it attracted 1.1 million more shoppers through its doors than the same time last year. In addition, its market share edged up 0.8 percentage points to 7%.

Kantar’s figures also show that overall supermarket sales grew by 4% year-on-year, although disappointing weather in the period meant that ice cream sales were down 9% and sales of burgers slumped by 25%.

All four of Britain’s biggest grocers managed to grow sales for the fifth consecutive period, a run of collective success not seen since 2013. However, the big four now account for just 69.3% of the UK grocery market, down from 76.3% five years ago.

Overall sales grew by 3% at Tesco, helped by an increase in volume sales, but its market share fell to 27.8%.

Morrisons increased its sales by 2.6% while its market share dropped slightly to stand at 10.4%.

Meanwhile, sales at Sainsbury’s rose by 2% as the supermarket's share of the market fell to 15.8%. Asda sales were up 1.4% to leave its market share at 15.3% in the period.

Waitrose’s market share held steady at 5.1% as it grew its sales by 2.8% year-on-year.

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