Cookies remember you so we can ensure to give you the best experience possible. By using this website or closing this message, you are agreeing to our cookies and policies

Do not show this message again
UK Insights

Lidl becomes the UK’s seventh largest supermarket

Fraser McKevitt

Head of Retail and Consumer Insight

Shoppers 22.08.2017 / 07:00


Kantar
  • SAVE
  • Close

    SHARE THIS WITH FRIENDS

  • EMBED
    Close

    Copy the following code to embed the chart into your web page, Blog or BBS.

Great Britain grocery share data from Kantar Worldpanel

The latest grocery market share figures from Kantar Worldpanel, published for the 12 weeks ending 13 August 2017, show Lidl has increased its market share to a new record high of 5.2% – up 0.7 percentage points year on year – to become the UK’s seventh largest grocer.

Ten million households visited the retailer’s expanding network of stores during the past 12 weeks, with alcohol and fresh produce performing particularly well as the retailer increased sales by 18.9% overall. 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. Not far behind, Aldi grew sales by 17.2%, attracting 1.1 million more shoppers through its doors than this time last year and increasing market share by 0.8 percentage points to stand at 7.0%.

Overall supermarket sales grew by 4.0% year on year, although disappointing weather hit summer favourites hard during the past month. Ice cream sales were down 9% as consumers huddled indoors, while sales of burgers slumped by 25% – an £8 million loss year on year – as rain dampened the nation’s appetite for barbecues. In contrast, sausages managed to escape the summer downturn thanks to a growing taste for posh bangers: 1/3 of those purchased during the month were from premium own label lines, as retailers persuaded shoppers that sausages should be enjoyed beyond the barbecue.

Like-for-like grocery inflation increased slightly to 3.3% after holding steady at 3.2% for the past two months. At the current rate, price increases could add a further £138 to the average household’s annual grocery bill, with the price of butter and fish most affected.

Meanwhile there is good news for the UK’s largest retailers, as the recovery which has so far defined 2017 continues apace. 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, this welcome period of sustained growth hasn’t been enough to entirely offset pressure from the discounters: the big four now account for just 69.3% of the UK grocery market – down from 76.3% five years ago – and that looks set to fall further in the coming months.

Overall sales grew by 3.0% at Tesco, helped by an increase in volume sales, but market share fell to 27.8% – down 0.3 percentage points compared to last year. Morrisons increased sales by 2.6% – the ninth consecutive period of growth for the Bradford-based supermarket – while market share dropped slightly to stand at 10.4%. Morrisons’ online business is performing particularly well: the retailer continues to increase its share of the online grocery market, attracting more shoppers as it expands its delivery service to new parts of the UK. Meanwhile, Sainsbury’s sales rose by 2.0% as the grocer’s market share fell to 15.8% – down 0.3 percentage points year on year.

After a difficult couple of years, Asda has managed to continue the run of positive sales performance which began in April this year – up 1.4% during the latest quarter. This follows the retailer’s recent announcement of a return to like-for-like sales growth, suggesting Asda is asserting its recovery across the board. Own label has been important to the grocer’s turnaround, providing a boost from both ends of the price spectrum: the value ‘Farm Stores’ and premium ‘Extra Special’ lines both saw double-digit growth during the past 12 weeks.

Waitrose’s market share held steady at 5.1% as it managed to increase sales by 2.8% year on year, continuing the unbroken run of growth the grocer has enjoyed since March 2009. Sales of branded goods were up 7% year on year at Waitrose – particularly noteworthy at a time when many retailers are focusing more on their own label lines.

After more than two years in growth, Co-op’s sales declined by 0.4% as its market share fell to 6.3% – down 0.3 percentage points compared to this time last year. This dip is at least partly attributable to the retailer’s sale of nearly 300 of its stores to convenience chain McColl’s. Meanwhile online specialist Ocado increased sales by 12.6%, now holding 1.4% of the overall grocery market.

Source : Kantar Worldpanel


Editor's Notes

These findings are based on Kantar Worldpanel data for the 12 weeks ending 13 August 2017.  Kantar Worldpanel monitors the household grocery purchasing habits of 30,000 demographically representative households in Great Britain.  All data discussed in the above announcement is based on the value of items being bought by these consumers.

To interview Fraser McKevitt, or more information, please contact us.

Latest Stories

Supermarket sales have increased in value by 3.1% compared with last year according to the latest grocery market share figures from Kantar Worldpanel.

The latest OS data from Kantar Worldpanel ComTech puts Samsung’s overall share at a three-year high of 38.4%

With the Kantar Pulse, you can see which politicians are being talked about most on Twitter, in real time

A new report from Kantar shows that financial services organisations could be missing a £130bn opportunity – by not winning over women

The social media platform has added new functionality to add ‘polls’ to Instagram Stories, giving users a new way to engage with content.

Related Content