UK Consumers Continue to Seek Out Value at Discount Retailers While Topping Up With Luxuries
17 Dec 2015 --- Falling prices and the continued success of discounters such as Aldi and Lidl have meant that total grocery market sales in the 12 weeks to 8th November were up by only 0.1% compared to last year as retailers battle for sales during the vital Christmas period.
Things remain tough for Tesco and Asda the UK’s leading retailers, with both seeing a fall in sales of 3.4% as consumers drift away from larger stores towards the discounters. It’s not all bad news – while internet shopping has created a challenge for the large out-of-town sites favoured by more traditional grocers, both Tesco and Asda have managed to increase sales online. Elsewhere, Morrisons has started to feel the impact of selling 130 of its M Local convenience stores, with revenues down by 2%.
Aldi and Lidl remain at the combined 10% share of the market they achieved last month, growing sales by 15.4% and 17.9% respectively year-on-year. While many shoppers may not head to Aldi and Lidl for their entire Christmas shop more and more are likely to pop in for trimmings ahead of the 25th, and each discounter should hope to attract a healthy 10 million shoppers over the Christmas period.
The Co-operative and Waitrose were both market share winners this month. The Co-operative’s revival continues with sales growth of 2% and an increased market share of 6.2%. Waitrose has grown revenues by 2.7% and now holds a respectable 5.1% share of the market.
