Published: Tue, September 19, 2017
Finance | By Loren Pratt

Lidl wins title for fastest growing retailer, says Kantar

Lidl wins title for fastest growing retailer, says Kantar

However, poor weather in August hit sales of traditional summer items, with prepared salads seeing a 6% dip and sun care down 16%. The privately held German grocer's market share increased to 5.3% from 4.6% a year ago.

Despite the decrease in fall in sales of some summer products, McKevitt said the United Kingdom hasn't seen "sustained market growth of this kind" since May 2013.

Like-for-like grocery inflation now stands at 3.2%, slightly ahead of the headline CPI rate and down 0.1 percentage point on last month.

"We haven't seen sustained market growth of this kind since May 2013", he said.

In the 12 weeks to 9 September, Tesco saw the biggest rise in sales among the so-called "big four" supermarkets at 2.8%, followed by Morrisons at 1.7%, Sainsbury at 1.4% and Asda at 1%. Growth was notable among fresh and chilled products, including dairy and white and rosé wines.

According to Kantar Worldpanel, during the 12 week period to September 10 nearly 63 per cent of shoppers visited an Aldi or Lidl - up from 58.5 per cent a year ago.

Despite the growth of the discounters, 98% of households still shopped in at least one of the traditional big four retailers over the same three-month period, Kantar Worldpanel noted.

Lidl was once again identified as the fastest-growing grocer in the United Kingdom, with a sales increase of 19.2 per cent allowing it to increase its market share to a record high of 5.3 per cent, up 0.7 percentage points compared to the same quarter a year ago.

"Tesco's recovery is becoming more entrenched", said Mr McKevitt. Volume sales rose and premium own label growth was up 38% year-on-year, by far the best performance in the market. Spending across all grocery products rose 3.5%.

Asda has attracted an additional 482,000 shoppers through the tills compared with a year ago - the fastest new shopper acquisition by the retailer in over three years. Average spend at the retailer is £25.74, according to McKevitt, resulting in the highest spend of any grocer.

J Sainsbury PLC was next, with sales up 2.1% as its market share decreased to 15.7% from 15.9%.

The UK inflation rate climbed to its joint-highest level in more than five years in August to 2.9% from 2.6% in July. Aldi and Lidl now have 8.1 percent and 5.2 percent of the market.

Co-op sales fell for the second month in row, taking market share down 0.3 percentage points to 6.3 per cent. Online retailer Ocado saw sales grow by a respectable 10.1%, with 834,000 households shopping with the retailer, giving it its highest-ever penetration of the population.

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