The high inflation rate in Great Britain is particularly evident in food. This is driving more and more citizens in the kingdom towards Aldi and Lidl. The influence of German discounters is growing.
“Aldi Price Match” – that means something like “same price as Aldi”. Great Britain’s second-largest supermarket chain, Sainsbury’s, now has signs with this inscription on almost every shelf. The German discounter and its competitor Lidl (English pronunciation: Liddl) have been a fixture on the British grocery market for years.
The undisputed dominance of the “big four”, as the large chains Tesco, Sainsbury’s, Asda and Morrisons were once called, is long over. Last year Aldi replaced Morrisons as the fourth largest supermarket chain. The sentence still applies: “Tell me where you shop and I’ll tell you what class you belong to.” But high inflation seems to be driving more and more middle class people into the arms of German discounters.
Aldi the fastest growing supermarket chain
This is also the result of a recently published analysis by the market research company Kantar. British media had reported that German discounters had come under pressure after losing market share slightly in the third quarter. But Kantar, which compiled the numbers, does not support this interpretation, as a spokesman for the German Press Agency said this week.
Aldi now has a 10.1 percent market share in Great Britain and is in fourth place among the largest British supermarket chains, while Lidl has 7.6 percent – that was 0.1 percentage points less than in the previous quarter.
British newspapers took this as an opportunity to proclaim the end of the triumph of German discounters. “British supermarkets launched a price war offensive,” said the Telegraph. However, seasonal effects, for example, should be taken into account in the slight decline in the third quarter, said the Kantar spokesman, adding: “We would not support this interpretation.” Aldi remains the fastest growing supermarket chain in Great Britain.
Consumers concerned about food prices
Compared to the previous year, the two discounters increased their sales significantly. Aldi recorded record-breaking growth of 17.1 percent, Lidl’s growth was 16 percent. Although growth is slowing somewhat, this can also be seen in the context of very strong growth in the previous year. The success story is likely to continue, predicted Kantar trading expert Fraser McKevitt. The background is that the inflation rate for food in Great Britain has fallen, but at 12.2 percent it is by no means a reason for households to celebrate.
“Our data shows that 95 percent of consumers are still concerned about the impact of rising food prices,” McKevitt said, according to the statement. Only when it comes to energy costs is the concern among the British just as great, according to the expert.
The discounters benefited from this. Lidl recently opened its world’s largest logistics center in the UK in Luton near London. Lidl now has a total of 960 branches in Great Britain. The expansion is also worth a deficit for the company. As Lidl recently announced, the British subsidiary recorded a loss of 76 million pounds (around 88 million euros) in the last financial year. It is important to maintain the price difference compared to conventional supermarkets, said Lidl GB boss Ryan McDonnell.
Shopping habits have changed
Aldi, which opened its 1,000th store at the beginning of September, announced a few days ago that it wanted to build an additional 500 branches in the Kingdom. This is a long-term goal, but by no means an upper limit, it said in a statement.
The cost of living crisis in Great Britain has not only strengthened the position of discounters, but has also changed the shopping habits of the British people as a whole. Traditional supermarkets are now increasingly relying on own-brand products. According to Kantar, their share of British purchases is now more than half.
Source: Stern
