Aldi and Lidl’s sales jump almost 25% – as Sainsbury’s outpaces Tesco

The march of the discounters continues as Aldi and Lidl steal customers from rivals – which are now cutting prices in a bid to win back business.

Industry figures show the German discounters were once again the fastest growth supermarkets in the UK over the past 12 weeks, with Aldi sales jumping 24.6 per cent on a year earlier and Lidl up 23.2 per cent.

By contrast, Morrisons was the laggard of the sector, with sales up just 0.8 per cent, business at Tesco rose 8.9 per cent and Sainsbury’s and Asda both recorded growth of 10 per cent, the data from brand consulting group Kantar showed.

Shoppers have flocked to Aldi and Lidl in recent years as food prices soar and they struggle to make ends meet.

That has piled pressure on the traditional Big Four supermarkets of Tesco, Sainsbury’s, Asda and Morrisons – and some of them are now cutting prices of everyday essentials in an attempt to turn the tide.

Cheaper option: Industry figures show German discounters Aldi and Lidl were once again the fastest growth supermarkets in the UK over the past 12 weeks

In a sign that pressure on family finances may finally be starting to ease, Kantar said grocery prices were 16.5 per cent higher than a year ago in the four weeks to June 11. 

That was the smallest increase so far this year – but still painfully high.

Official figures published today will show what inflation is doing across the whole economy having peaked at 11.1 per cent last year and only eased to 8.7 per cent in April.

With prices rising and households feeling the pinch, Morrisons in particular has struggled since its takeover by New York private equity giant Clayton, Dubilier & Rice in 2021.

It has lost its position in the Big Four, and now represents just 8.8 per cent of the grocery market. By contrast, Aldi now accounts 10.2 per cent – and claimed Morrisons’ place in the top four.

Marks & Spencer and Morrisons both announced price reductions this week while Tesco last week cut the prices of staples including milk and bread. 

Tesco boss Ken Murphy also revealed the company was winning the business of Waitrose and M&S customers.

Danni Hewson, head of financial analysis at AJ Bell, said: ‘Aldi and Lidl know how to speak the language of value, and right now value is the determining factor for most people’s shopping choices.

‘Bargain hunting has become a badge of honour and long gone are the days when shoppers would take a Waitrose carrier into a discounter so their friends wouldn’t see where they’d been spending their cash.

‘Both of these discounters have hit on a pretty solid formula of quality food and low prices with a sprinkle of British produce thrown in for good measure.

‘At a time shoppers are already shunning big name brands, the discounters have been pushing hard on a door that’s already more than half open and nabbing more market share in the process.’

While Morrisons remains the laggard, the Kantar figures showed sales are rising again.

‘This was the fourth time in a row that we’ve seen Morrisons grow,’ said Fraser McKevitt, head of retail at Kantar.

‘It’s a modest rise compared to rivals but there are positive signs for the retailer.

‘Its Morrisons Savers range is Britain’s fastest growing value line, nearly doubling sales compared to last year, as consumers turn to own-label.’

Hewson added: ‘Morrisons has found itself lost in the wilderness. It lost its USP in the switch from public to private ownership and with no credible points scheme, dwindling choices on shelves and prices that were frankly off-putting it lost shoppers hand over fist.

‘It’s caught a clue in the last couple of months, but Morrisons is playing catch-up and it’s hard to generate any sort of momentum from a standing start.’

This post first appeared on Dailymail.co.uk