The figures for the 12 weeks ending July 20 2014 show “familiar trends of market polarisation” bringing new records for Aldi and Lidl.
Edward Garner, director at Kantar Worldpanel, said the discount retailers’ market share had almost caught up with Waitrose.
“Aldi’s 32% growth rate has lifted its market share to 4.8%; this is a new record for the retailer and means it has nearly caught up with Waitrose on 4.9%. Similarly, Lidl sales have grown by nearly 20% which means it now accounts for a record 3.6% of the grocery market.”
Waitrose has continued to resist pressure from the competition and has grown sales by 3.4%, Garner revealed. “This figure is well above the market average and thereby has lifted its market share,” he added.
Tesco and Morrisons have recorded losses with sales for both businesses declining by 3.8% compared with this time last year, according to the data.
The other retailers among the big four, Asda and Sainsbury, have held onto their market shares of 17.0% and 16.6% respectively.
Iceland posted a small drop in sales, its first since 2005, but has retained its 2.0% share.
Grocery price inflation fallen
Grocery price inflation has fallen for the tenth successive period and now stands at 0.4%.
Competitive pricing among the big retailers and deflation in the price of staple items such as vegetables, milk and bread has driven inflation to the lowest level since October 2006 when Kantar Worldpanel began this measure.
As a result, market growth has fallen to 0.9% – the lowest figure for 10 years.
“This is the lowest level since we began recording grocery price index in October 2006 and reflects the impact of Aldi and Lidl and the market’s competitive response, as well as deflation in some major categories including vegetables, bread and milk,” Kantar Worldpanel added.
Meanwhile, Morrisons yesterday appointed Tesco’s former finance boss Andrew Higginson as its new chairman.