Aldi has become the UK’s fifth-largest retailer as it leapfrogs the Co-op with a new market share of 6.2 per cent.
The discounter’s growth, which has seen it climb from 10th place a decade ago with less than two per cent of the grocery market, has been built on new store openings.
In the last quarter alone, Aldi has attracted 826,000 more shoppers than it did during the same period last year.
Head of retail and consumer insight Fraser McKevitt said: “Just a decade ago Aldi was the UK’s tenth largest food retailer, accounting for less than two per cent of the grocery market. Since then the grocer has grown rapidly, climbing the rankings by an impressive five places to hold a 6.2 per cent market share.”
The new Kantar grocery market figures, released today (7 February) for the 12 weeks ending 29 January 2017, also noted that the well-publicised supply issues on certain Spanish and European imports, have affected fresh produce sales.
McKevitt said: “11 million households buy courgettes annually, but supply issues contributed to 759,000 fewer shoppers buying them this January – that’s a 31 per cent drop in spending compared with the same month last year. Sales of spinach also fell by 12 per cent, in a clear sign that the poor weather in southern Europe has had a tangible impact on British shopping baskets.”
Supermarket sales a whole are up 1.7 per cent on last year, with eight of the nine major retailers seeing positive sales growth during the past 12 weeks.
“Despite being overtaken by Aldi, Co-op’s two per cent sales increase was well ahead of the market, continuing a run of growth stretching back to July 2015,” added McKevitt.
“A significant own label sales increase of seven per cent was behind the strong performance, with healthier ranges successfully catering to consumers’ good intentions for the new year.”
Morrisons was the fastest-growing retailer within the big four, increasing its market share for the first time since June 2015 driven by premium own label.
Tesco’s sales were up 0.3 per cent year on year as its market share fell to 28.1 per cent. Sainsbury’s sales remained flat, and Asda saw a 1.9 per cent sales decline, although this rate of decline continues to slow.
Elsewhere, Waitrose, Lidl and Iceland all continued to grow, with Iceland recording sales growth for the tenth consecutive period.
