The latest NIQ data highlights a shift in the competitive landscape of discount retailers, with Lidl outperforming Aldi.
- Lidl’s sales have increased by 8% over a 12-week period, while Aldi experienced a 1% decline in revenue.
- Aldi faces challenging comparisons to its past record-breaking growth from the previous year.
- Despite both retailers attracting new customers, the average spending per visit has decreased.
- Market share dynamics show Lidl on the rise, while Aldi’s share is experiencing a slight decline.
The latest data from NIQ illustrates a significant change in the fortunes of discount retailers, as Lidl’s sales increased by 8% over a 12-week period, ending on 15 June. This growth places Lidl ahead of its rival Aldi, which saw a 1% drop in revenue during the same period. The competitive landscape is shifting as Lidl gains momentum and increases its market share.
Aldi, although still attracting new shoppers, is encountering tough comparisons due to its previous outstanding performance as the fastest-growing retailer a year prior. The retailer’s market share has decreased from 10.8% to 10.4%. Meanwhile, Lidl’s market share has improved from 7.2% to 7.6%, indicating a positive trend for the company.
Both Lidl and Aldi are drawing more customers and experiencing an increase in store visits, yet the data indicates a decrease in the average spending per visit compared to a year ago. This highlights a shift in consumer behaviour as economic factors influence shopping habits. NIQ UK’s head of retailer and business insight, Mike Watkins, notes that future growth will rely heavily on new store openings and increasing visit frequency to counteract reduced individual spending.
Elsewhere in the grocery sector, Ocado reported a remarkable 12.6% surge in sales over the last three months, outperforming all other retailers. M&S recorded a respectable 7.1% rise in sales, with their respective market shares standing at 1.7% and 3.8%. Both Sainsbury’s and Tesco also saw their sales increase by 4.7% and 4.1%, respectively, with each gaining 0.3 percentage points in market share year-on-year.
Conversely, Asda faced a 4.9% decline in sales, resulting in a market share reduction of one percentage point to 12.2% year-on-year. The broader supermarket sector observed a modest growth of 1.1% in the last four weeks, significantly lower than the 12.1% growth in the same period the previous year. Watkins attributes this slowdown in grocery sales to last year’s exceptionally hot summer compared to the current year’s wet weather conditions.
The evolving dynamics within the discount retail sector indicate Lidl’s successful advancement amidst shifting market conditions, with future growth reliant on strategic expansions.
