Aldi and Lidl’s growth rate falling behind

DISCOUNTERS like Aldi and Lidl are now growing less quickly than British stalwarts such as J Sainsbury and Morrisons in a sign that the traditional supermarkets’ fight-back is succeeding, a survey showed yesterday.

Britain’s grocery market grew by a recession-beating 6.5 per cent in the 12 weeks to 14 June compared to the same period last year, helped by food inflation of seven per cent, market researcher TNS World Panel said.

Morrisons’ sales grew by 9.3 per cent in the period – the biggest increase of any of the grocers – while it also boosted its market share from 11.3 per cent to 11.6 per cent.

Sainsbury’s sales rose by 8.9 per cent, helping it to increase its market share from 15.8 per cent in 2008 to 16.1 per cent.

Aldi and Lidl grew less quickly as the large UK retailers’ enhanced low-cost and value offerings helped them regain the initiative.

Aldi grew by 8.7 per cent while Lidl grew by 7.5 per cent. The pair saw their share remain flat in the period, with Aldi at 8.7 per cent and Lidl at 7.5 per cent.

Meanwhile, Tesco grew by 6.2 per cent in the three month period, its best performance so far this year, although one which still trailed the growth in the grocery market as a whole. Its market share was down slightly from 30.9 per cent in 2008 to 30.8 per cent.
 

Wal-Mart’s Asda grew sales 8.2 per cent and Waitrose grew 7 per cent, thanks to the launch of its low-cost essentials range.

Ed Garner of TNS World Panel, said: “The stellar growth of Aldi and Lidl has tailed off and both outlets are seeing their rate of growth eclipsed by Sainsbury’s and Morrisons.”