Upmarket and budget grocers sprint ahead

Kasmira Jefford
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BRITAIN’S grocery market is becoming increasingly divided, according to new data which shows higher-end and discount retailers gaining market share while those occupying the middle ground lose out.

The latest grocery share figures from Kantar Worldpanel, show that total till roll at privately-owned Aldi grew 31.5 per cent year-on-year, giving the German retailer an all-time record market share of 3.5 per cent.

Waitrose, which is owned by John Lewis, held on to its record market share of 4.9 per cent reported last month.

Edward Garner, director at Kantar said: “For many consumers, the discounters are increasingly becoming part of the weekly shop – supplementing trips to the big four retailers and offering a convenient and cheaper option.”

The trend is putting pressure on Britain’s so-called big four, with only J Sainsbury, Britain’s third-largest grocer, posting an increase in market share from 16.5 per cent to 16.8 per cent of a market total of £32.5bn.

Earlier in May, Sainsbury beat forecasts with a 6.2 per cent rise in year profit, while last month Tesco posted a 51.5 per cent slump in yearly profit.

The market leader saw its market share fall to 30.2 per cent from 30.8 per cent while Wm Morrison’s share of the market fell to 11.6 per cent from 11.9 per cent a year ago.

Asda also fell 0.2 per cent to 17.2 per cent.

“With its plans for online and accelerated convenience store coverage now in place, the retailer will hope that successful implementation will return it to share growth,” Garner said of Morrisons.

Kantar said grocery inflation was 3.9 per cent for the 12-week period.