#lidl's record market share, and #tesco gaining the most market share, are the highlights from Worldpanel by Kantar's UK market data for 12 weeks ending 12th May released this morning.
12-wk sales grew by 3.6%, down from the last 12-wk period figure of 4.3%. The lowest rate of grocery inflation since Oct 2021 (2.4% across the last 4 weeks) is the main reason for this slight drop in overall sales growth.
12-wk grocery inflation, at 3.1%, is lower than the overall sales growth of 3.6%, suggesting a small increase in volumes across the market.
Lidl have enjoyed yet another strong period with sales up 9.4%, hitting a record market share of 8.1%, now just 0.5% points behind no. 5 retailer, #morrisons. Lidl have increased their sales by a massive 74% compared to 5 years’ ago, whilst increasing their store numbers from 765 to 963 (ScrapeHero). This means their average sales per store have increased by around 38% since 2019.
#aldi, meanwhile, are seeing much softer year-on-year comparables, with sales up just 2.2%, behind total market growth. Their average sales per store have increased by around 27% since 2019 – still a great result, but behind Lidl’s performance. Only 12 months ago, Aldi’s market share was 2.4% points ahead of Lidl. Now it is just 1.9%.
Two main reasons cited for Lidl’s great performance currently are, firstly, the dynamic activity on their Lidl Plus App – now offering personalised and non-personalised discounts to their customers, and secondly, the stand-out performance of their in-store bakery (ISB). Kantar report that freshly baked bread, cakes, and pastries were in 25% of Lidl’s baskets in the last 4 weeks, with ISB volumes up over 40%. In March, Lidl overtook Tesco as the number one ISB retailer with an 18.2% share (Tesco 18.0%).
Tesco continue their stellar performance with their market share increasing 0.5% pts YoY, the highest increase across all retailers. At a recent IGD conference the message from Tesco was upbeat – expect to see even more focus on value, quality, range, and loyalty/reward over the next 12 months.
#sainsbury's are also enjoying a gain in market share, up 0.3% pts YoY, but #asda continue to struggle, with sales down 2% YoY and share down over 2% pts compared to 2019. They have just announced a new dark green brand identity focusing on fresh, value and “offers for all”, hoping this will give them the kick start they so desperately need.
Kantar report that #privatelabel is growing ahead of #brands, now accounting for 52% of the market by value (the volume figure is over 59%). Premium-tier PL is growing at 9.9%. Tesco recently reported their “Finest” range is now a £2bn brand.
Online sales are growing at 5.4%, fuelled by #Ocado's strong growth of 12.4%. They now hold a 3% market share within the London area.
The latest trends are set to continue over the next 4-week period, and expect to see Lidl branding everywhere in the lead-up to, and during, #euro2024, as they are one of the main sponsors.
