Brands who don’t embrace Aldi and Lidl are at risk of becoming ‘outdated’
The growth of Aldi and Lidl, which have both pledged a combined 1,400 new store openings over the next decade, can no longer be ignored and brands must ignore concerns over lower prices, Kantar has urged.
Although admitting that brand prices in the discounters are, on average, 5% lower than the big four supermarkets, because they rarely put products on promotion or discount, the eventual price is potentially higher.
Kantar also found that there’s a 50/50 chance of a purchase in a discounter, making the discounters more likely to result in an incremental sale.
In an assessment of the performance of over 350 branded products sold at Aldi and Lidl, it found that for 60% of shoppers it was the first time that year they had bought the brand in question.
“It’s important to remember that the discounters pride themselves on carrying a streamlined portfolio of products –around 2,000 lines compared with 35,000 in major retailers,” warns the report.
“But discounters are not going to keep adding brands to their lists forever, and risk this important point of difference, so brands wanting to take advantage of this rapidly-expanding sector will have to be quick to avoid missing out altogether as Aldi and Lidl are becoming mainstream brands.”
The two discounters now have a combined market share of 8.3%, over double the combined levels recorded in 2010.
