Aldi becomes the UK’s fifth largest grocer

Aldi increased its market share by 0.6% to 6.2% in the 12 weeks to January 29, Kantar Worldpanel revealed today (February 7). Aldi overtook the Co-op in market share, underpinened by a large number of store openings, Kantar said.

Kantar Worldpanel head of retail and consumer insight Fraser McKevitt said: “Just a decade ago Aldi was the UK’s tenth largest food retailer, accounting for less than 2% of the grocery market.​

‘Grown rapidly’​

“Since then the grocer has grown rapidly, climbing the rankings by an impressive five places to hold a 6.2% market share. Underpinned by an extensive programme of store openings, the past quarter has seen Aldi attract 826,000 more shoppers than during the same period last year.”​

Aldi’s rise in market share came less than two years after it pledged to UK growers it could “change the face of retailer and supplier relations”​​. It promised fruit and veg suppliers promotional support, open communication and simple net cost price agreements.

Despite being leapfrogged by Aldi, Co-op’s sales rose 2% across the 12 weeks – well ahead of the market, McKevitt said. Own-label sales increased by 7%, with healthy own-label sales up 3%.

Morrisons was the fastest-growing retailer within the ‘big four’, increasing its market share by 0.1% with increased sales of 1.9%. Its growth was driven by its premium own-label sales, which were up 35%.

‘Supply issues’​

Fresh produce sales were dampened by “supply issues”​, after southern Europe experienced a poor growing season, Kantar claimed.

McKevitt said: “11M households buy courgettes annually, but supply issues contributed to 759,000 fewer shoppers buying them this January – that’s a 31% drop in spending compared with the same month last year.​

“Sales of spinach also fell by 12%, in a clear sign that the poor weather in southern Europe has had a tangible impact on British shopping baskets.”​