Competition fierce among big four as Waitrose and discounters thrive

Aldi enjoyed record sales growth of 32.7% year on year over the 12 weeks to September 15. Lidl and Waitrose also performed well with respective growth rates of 14.3% and 9.7%.

Sainsbury’s recorded 5.1% sales growth over the period, Asda 2.4%, Tesco 1.9% and Morrisons 1.6%. The Co-op’s sales grew 0.3% and Iceland’s 4%.

Kantar reported that Aldi, Lidl and Waitrose had taken three grocery market share percentage points from larger rivals over the last three years.

Waitrose now has a market share of 4.9%, Aldi 3.7% and Lidl 3%.

The UK’s largest grocer Tesco’s market share was 30.2% in the 12-week period, down from 30.9% last year. Asda’s fell to 17.3% from 17.6% last year, while Morrisons’ fell to 11.1% from 11.4%.

Sainsbury’s was the only one of the big four to grow market share, up to 16.6% from 16.4% last year.

Kantar Worldpanel director Ed Garner said: “The discounters have continued to perform strongly with year-on-year sales growth of 32.7% for Aldi, another all-time record, and 14.3% for Lidl. At the same time there is no sign of Waitrose running out of steam as it delivers growth of 9.7%.

“Strong performances by retailers at both ends of the market pose a significant challenge for the big four supermarkets. The combined growth of Lidl, Aldi and Waitrose has taken three market share points [from larger retailers] over the past three years and is forcing the major supermarkets to compete for an ever-smaller middle ground.”

He added: “Price-match promotions such as Asda’s Price Guarantee, Sainsbury’s Brand Match and Tesco’s Price Promise have meant that price is less of a differentiator and shoppers cannot be convinced to switch outlets based on cost alone.”

Kantar said premium own-label lines are performing strongly with Tesco Finest and Sainsbury’s Taste the Difference enjoying double-digit sales growth.