Aldi And Lidl 'Victors In Supermarket War'
Updated: 2:18pm UK, Tuesday 29 July 2014
Discounters Aldi and Lidl have seen their market share surge as Britain's four biggest outlets suffer in the ongoing bitter supermarket war.
Research firm Kantar Worldpanel said in the three months to June 20, both of the German-based retailers saw significant growth compared to the same period last year.
It said Aldi's share rose from 3.7% to 4.8%, while Lidl expanded from 3.1% to 3.6%.
Meanwhile, supermarket giant Tesco saw its share of the sector fall from 30.3% last year to 28.9% in the period ending in July.
Asda, Britain's second biggest chain, remained flat at 17%, while Sainsbury's also remained static at 16.6%.
Struggling supermarket Morrisons was the second biggest faller out of the major retailers, seeing its share fall from 11.5% last year to 11% this year.
Both Tesco and Morrisons recorded sales losses of 3.8% compared to the same period last year, researchers said.
Kantar Worldpanel director Edward Garner said: "Aldi's 32% growth rate has lifted its market share to 4.8%, and this is a new record for the retailer and means it has nearly caught up with Waitrose on 4.9%.
"Similarly, Lidl sales have grown by nearly 20% and it has held onto its record share of 3.6%."
Britain's big outlets have become increasingly embroiled in a price war during 2014 that has harmed their margins.
They have also invested heavily in convenience store and online delivery services.
The hard discounters have avoided entering the online delivery sub-sector, which is seen by analysts as costing the majors more than £100m a year.
Grocery price inflation has also fallen for the 10th consecutive periods and now stands at 0.4%.
Price slashing and deflation in staple items like milk, vegetables and bread have driven food price inflation down to its lowest level since late 2006, when the research first started.
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