Discount grocers continue to take market share in UK

Posted by Daniel Palmer on 16th October 2008

The latest grocery market share figures, published by TNS Worldpanel for the 12 weeks ending 5th October 2008 confirm that the growth of value-based grocery retailers continues apace. Total Grocers grew at 6.7% year-on-year which reflected food price inflation rather than any real growth.
Aldi continue their strong run with growth of 22.1% for the latest 12 weeks, which is a record as the share reaches 3.0%. The German discounter has also begun to make inroads within Australia, as many consumers look to reduce grocery costs. In the UK they are currently implementing a marketing strategy designed to enhance the perception of the quality of their food to add to their established low-price reputation. Lidl, another prominent UK discount grocer, also realised growth that surpassedĀ  most in the industry.

Tesco, the UK’s leading retailer, saw its share drop by 0.4 points compared with the same period last year and are hoping their recent introduction of a range of “Discounter Brands” will give them a boost. The introduction of their new low-priced private label range was in response to the proliferation of the discounters and followed the release of a survey commissioned by Tesco discovering that price was more of a factor now than it had been for two decades.

“As customers tighten their belts in hard times, they tend to shop around for the best prices. Our research shows just how keenly they are feeling the need to watch their budgets,” Richard Brasher, Tesco Commercial Director, noted.

Tesco also found that convenience, choice and service were ranking higher than ever before on consumer purchase decisions.