Aldi and Lidl have grown at their fastest rate since 2015. Inflation has raised the price of groceries, which lead to the discount supermarkets’ best performance in more than three years.
Inflation has cost families an extra £27 on groceries over the past 12 weeks, and the two grocers reached a joint record market share of 12 percent.
While the discounters still lag behind Britain’s Big Four supermarkets — Tesco, Sainsbury’s, Morrison’s and Asda — in terms of market share, all the other major grocers other than Iceland lost share.
Aldi and Lidl saw sales grow 19.2 per cent year-on-year as 62 percent of the UK population shopped in either of the supermarkets over the past three months. This is up from 59 percent last year, so accounts for an additional 1.1 million households.
Own-label products, such as Sainsbury’s Taste the Difference range and Asda’s Extra Special, were up 6 per cent year on year. This is in contrast to branded products, which grew by just 0.6 per cent during the same period.
Supermarket sales growth hit a three-and-a-half-year high in the three months. But the discount grocers and lower-cost food ranges were the biggest beneficiaries – a sign that inflation is starting to affect consumer spending.