Brits flock to Aldi in the run up to Christmas

As inflation hits a four-year high, the latest grocery market share numbers from Kantar Worldpanel suggests the German discounters could be the biggest winners this Christmas.

Aldi reclaimed its crown as Britain’s fastest growing supermarket during the 12 weeks to 3 December, according to the latest data from Kantar Worldpanel.

The German discounter grew sales by 15.1% year on year, ahead of Lidl’s 14.5% sales growth. In comparison, Tesco, Sainsbury’s, Asda and Morrisons grew sales at far slower rates of 2.5%, 2%, 1.4% and 1.2% respectively. Each of the big four also lost market share, with the data strongly indicating Brits are readying themselves for a more budget Christmas.

However, Tesco will still take heart from the numbers, with it growing sales faster than its direct rivals and remaining Britain’s most-visited retailer, having welcomed 21 million households during the latest quarter.

Like-for-like grocery inflation now stands at 3.6%, its highest level since 2013, which could also be leading more people to consider the discounters, according to Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel.

READ MORE: Brits’ hunger for major purchases plunges just before Christmas

“Aldi saw notable successes in the chilled aisle, increasing sales of convenience products like ready meals and desserts by an impressive 40% year on year,” he adds. “Aldi’s ‘Specially Selected’ line was the UK’s fastest growing premium own label brand during the past 12 weeks, enjoying a healthy sales increase of 25%.”

The Kantar Worldpanel numbers come as inflation hits its highest level in almost six years. The consumer prices index rose by 3.1% in the 12 months to November, the highest level since March 2012 and away from the Bank of England’s 2% target.

Air fares were the biggest factor behind the jump, according to the Office for National Statistics. And according to Richard Lim, CEO of Retail Economics, this is depressing news for retail brands.

He concludes: “Inflation is likely to have peaked which has come at precisely the wrong time for retailers.

“In the run-up to Christmas, the cost of living, now rising at the fastest rate in five years, remains uncomfortably high for households. Food inflation is at a four-year high and for many families, this is one of the most transparent indicators of living costs and often the catalyst to cut back on spending elsewhere.”

Latest from Marketing Week

Marketoonist on whack-an-idea

Marketoonist

Tom Fishburne is founder of Marketoon Studios. Follow his work at marketoonist.com or on Twitter @tomfishburne See more of the Marketoonist here

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here