Aldi becomes the UK’s fifth largest grocer

By Matt Atherton contact

- Last updated on GMT

Aldi leapfrogged the Co-op to become the UK's fifth largest grocer
Aldi leapfrogged the Co-op to become the UK's fifth largest grocer
Aldi, the discount retailer which pledged to “change the face of retailer and supplier relations”, has become 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%.

The grocery market continued to grow faster than it did in 2016, Kantar said. Total supermarket sales were up 1.7% on last year, with eight of the nine major retailers seeing sales growth over the 12 weeks – Asda’s sales dropped by 1.9%.

‘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.”

Aldi’s rise in market share – at a glance

  • Becomes UK’s fifth largest grocer
  • Leapfrogged the Co-op
  • Market share rose 0.6% to 6.2%

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1 comment

opinion

Posted by RC,

Now that Morrisons' share price is high I think it should merge with Booker - it made an approach in the past. Booker fits neatly with Morrisons' strategy to become also a wholesaler. Moreover, the merger would further utilise Morrison's manufacturing capacity. If it will offer say, 0.9 shares for 1 Booker's share the prices of both companies will go up.

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