Aldi continuing to snatch market share from Tesco and other supermarkets

Aldi continues to gain market share from Tesco and other major supermarkets, according to closely monitored industry data.

The former Big Four supermarkets – Tesco, Sainsbury’s, Morrisons and Asda – have lost £170 million in sales to the German discounter in just three months.

Figures leaked to The Grocer magazine show that Tesco accounts for more than a third of the loss.

Tesco, which will report its first-half results next week, has attempted to stem the tide of defectors with its Aldi Price Match campaign, described as “aggressive” by one source.

Despite the setback, analysts believe Tesco is doing well against many of its competitors.

Supermarkets struggle with rising costs and inflation as the cost of living crisis hits harder. Aldi passed Morrisons last month to become Britain’s fourth largest food retailer.

A report from Credit Suisse said the numbers — compiled by research firm Kantar and normally only shared privately with major retailers — show how shoppers are chasing the lowest prices.

It said there was evidence of a small shift in spending to Aldi from rival German operator Lidl, which also prides itself on offering competitive prices.

Barclays analyst James Anstead said in a report last week: “Discounters appear likely to be experiencing a period of strong growth in the looming consumer shortage.”

He added that cost pressures in the food sector may remain “higher for longer” and could weigh on profits this year and next.