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Big Four frozen out as shoppers choose Aldi, Lidl and Iceland Tuesday, 17th July 2012
Savvy shoppers are increasingly favouring discounters and frozen food grocers as value-driven supermarkets continue to strengthen their market share.
The latest figures from Kantar Worldpanel show the grocery market growth rate fell 2.1 per cent compared with figures from a year before, with inflation now at 3.8 per cent. However, retailers at either end of the consumer price range continued to benefit from the recession, with Aldi, Lidl, Iceland and Waitrose seeing a surge in market share and sales.
Edward Garner, director at Kantar Worldpanel, explains: “We are seeing big cutbacks by consumers as they continue to respond to this current period of austerity. The success of the discounters, Aldi and Lidl, is a clear example of shoppers watching their purses, with both retailers continuing to surge ahead.
“Once again, they both achieve all-time record shares of 2.9 per cent and remarkable growth of 26.1 per cent for Aldi and 11.5 per cent for Lidl. Similarly, although Waitrose is still growing at over double the rate of the whole market, this growth has fallen back to 4.8 per cent from 7.5 per cent last period − suggesting there are signs that the premium sector is beginning to slow.”
Sales for the 12 weeks ending 8 July saw Asda and Sainsbury’s gain market share from Tesco and Morrisons, with a drop in premium own label purchases as shoppers favour economy own labels.
Edward Garner adds: “Frozen food continues to be the top-growing food sector, as consumers look to reduce waste, and this has helped Iceland to continue the upward trend it has enjoyed since 2005.”