Aldi and Lidl pile pressure on rivals in grocery battle

The discounters’ advance continues as Aldi and Lidl steal customers from rivals – who are now slashing prices in an effort to win back customers.

Industry figures show that German discounters were once again the fastest growing supermarkets in the UK over the past 12 weeks, with Aldi sales up 24.6 percent year-on-year and Lidl up 23.2 percent.

By contrast, Morrisons lagged the industry, with sales up just 0.8 per cent, sales at Tesco up 8.9 per cent and Sainsbury’s and Asda both posting 10 per cent growth, data showed. brand consultancy group Kantar.

Shoppers have flocked to Aldi and Lidl in recent years as food prices skyrocket and they struggle to make ends meet.

That has put pressure on the traditional Big Four supermarkets of Tesco, Sainsbury’s, Asda and Morrisons – and some of them are now slashing prices on everyday essentials in a bid to turn the tide.

In a sign that pressures on household finances are finally starting to ease, Kantar said food prices in the four weeks to June 11 were 16.5 percent higher than a year ago.

That was the smallest increase so far this year – but still painfully high.

Official figures released today will show what inflation is doing across the economy, peaking at 11.1 percent last year and only falling to 8.7 percent in April.

With prices rising and households struggling, Morrisons in particular has struggled since being acquired by New York private equity giant Clayton, Dubilier & Rice in 2021.

It has lost its position in the Big Four and now accounts for just 8.8 percent of the grocery market. Aldi, on the other hand, now accounts for 10.2 percent – ​​claiming Morrisons’ place in the top four.

Marks & Spencer and Morrisons both announced price cuts this week, while Tesco cut prices on basic products including milk and bread last week.

Tesco boss Ken Murphy also revealed that the company was bringing in Waitrose and M&S customers.

Danni Hewson, head of financial analytics at AJ Bell, said: “Aldi and Lidl know how to speak the language of value, and right now, value is driving most people’s shopping choices.

‘Bargain hunting has become a badge of honor and the days when shoppers took a Waitrose courier to a discount store so their friends wouldn’t see what they were spending their money on are long gone.

‘Both discounters have found a pretty solid formula of quality food and low prices with a pinch of British produce for good measure.

“At a time when shoppers are already avoiding big brands, the discounters have pushed hard on a door that is already more than half open, gaining more market share in the process.”

While Morrisons remains the laggard, Kantar’s numbers showed that sales are rising again.

“This was the fourth time in a row we’ve seen Morrisons grow,” said Fraser McKevitt, head of retail at Kantar.

“It is a modest increase compared to competitors, but there are positive signs for the retailer.

“The Morrisons Savers range is the UK’s fastest growing value line, with sales almost doubling compared to last year as consumers turn to own label.”

Hewson added, “Morrisons is lost in the wilderness. It lost its USP in the switch from public to private ownership and with no credible points scheme, dwindling choices on the shelves and prices that were frankly off-putting, shoppers lost hand over hand.

“It’s taken a lead in recent months, but Morrisons is catching up and it’s hard to generate any momentum from a standing start.”