London, 7 March 2017. Discounters Aldi and Lidl now account for more than 12% of grocery sales in Britain, according to Nielsen retail data released today.
During the twelve weeks ending 25 February 2017, Aldi’s sales grew 12.0% year-on-year, and Lidl’s 9.1%, while across the overall market sales increased 2.2%. Thus, Aldi and Lidl’s combined market share crossed 12% for the first time, to 12.3% or nearly £1 in every £8 spent on groceries.
“Whilst the retail landscape is very different to 25 years ago when Aldi entered the UK, discounter market share is higher than when Kwik Save was at its pomp as the original discounter,” says Mike Watkins, Nielsen’s UK head of retailer and business insight. “The difference today is that Aldi and Lidl aren’t solely associated with low-priced brands, having been very astute at promoting the quality and price of their private-label range to appeal to a wider array of shoppers.
“Aldi and Lidl’s momentum continues due to new stores opening and the average shopper spending more – testament to the wider and higher quality of products available.”
Aside from the discounters, Iceland had the biggest rise in year-on-year sales (+5.6%) whilst Morrisons had the strongest rise among the big four supermarkets (+1.9%).
Across the supermarkets, for the most recent four weeks (ending 27 February), takings at the tills rose +1.1%¹, boosted by inflation returning to food retailing in February (+0.4%²) – the first inflationary rise since April 2016.
Watkins notes that the return of inflation has two impacts on how people shop, “they’re more careful about how much they spend, which results in more promiscuity in both the number of stores they visit and how often they shop.”
All figures are from Nielsen Homescan Total Till unless otherwise stated
¹Source: Nielsen Scantrack Grocery Multiples
²Source: BRC-Nielsen SPI Food
The Nielsen continuous 15,000 GB household panel is geo-demographically balanced and designed to measure household purchasing through a wide range of channels. It includes all food and drink and non-food spend (e.g. household, personal care, clothing, electrical, cards and stationery, toys, music, general merchandise, etc.) It represents the total amount paid (after all coupons and vouchers), found on the till receipt.
The Nielsen scanning service measures total store sales every week by SKU for 20,000 shops across all food and drink trade channels in GB. This uses the actual EPOS data from retailers, thus, Scantrack is the most robust and reliable measure of FMCG sales and is integrated with Homescan for the key indicators of retailer performance. The total market measured is £145bn per annum. ‘Grocery Multiples’ is a defined sub-set of the major supermarkets that also includes all food sales from Marks and Spencer (but excludes Aldi and Lidl). The Grocery Multiples account for over £120bn of all GB food, drink and supermarket general merchandise sales.
Nielsen Holdings plc (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers watch and buy. Nielsen's Watch segment provides media and advertising clients with Total Audience measurement services for all devices on which content — video, audio and text — is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry's only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen also provides its clients with analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries, covering more than 90% of the world’s population. www.nielsen.com.
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