Shoppers eye discount brands as increasing costs of essentials bite
Shoppers are eyeing cheaper prices at discount supermarkets amid increases in the cost of living.
Brands to focus on affordable prices have made market share gains over the past 12 weeks, according to fresh data from Kantar.
Lidl hit a new record market share of 6.4per cent, while Aldi gained 0.2 percentage points to move to 7.9 per cent.
The discount supermarkets have been “getting back to their trajectory of winning over shoppers,” said Fraser McKevitt, head of retail and consumer insight at Kantar.
“Shoppers are returning to these stores for big shops,” McKevitt explained, after the pandemic slightly dampened market growth for big discount stores.
Tesco won 0.7 percentage points in the period, hitting its highest market share since February 2019.
“Last time in the wake of the financial crisis, we know shoppers wanted to limit their own price rises,” McKevitt said.
“We saw people moving to cheaper retailers, that is a battleground. No retailer wanted to accept that another might be cheaper.”
What’s more, brands like Aldi and Lidl have ambitious plans for new store openings, which will set them in good stead for future growth.
Grocery inflation hit 2.2 per cent for the 12-week period ending 28 November, with prices increasing fastest in categories including crisps and cat food.
However, categories like bath and shower products and fresh bacon have seen drops.
Brits are growing increasingly anxious about the rising cost of living and are dining out less and shopping in cheaper stores, according to financial mutual Scottish Friendly.
Almost half of 2,000 adults surveyed said they were going to restaurants less frequently in a bid to save money while more than four in ten were shopping in cheaper stores and supermarkets.
Four in ten said they were planning to cut back on treats over the next three months.