Aldi, Lidl Continue to Gain Market Share; Tesco, Morrisons Drop

LONDON--Discount retailers Aldi and Lidl continue their stellar growth, in the latest data released on Tuesday, as Tesco PLC and Wm Morrisons Supermarkets PLC registered a drop in both market share and sales.

Asda Group Ltd. and J Sainsbury PLC both increased share for the 12 weeks ended June 22, beating the market average with growth rates of 3.6% and 3.0% respectively, according to Kantar.

The research company monitors the household grocery purchasing habits of 25,000 demographically representative households in the U.K.

Upmarket chain Waitrose continued to do well, with a record 5% market share in the 12 weeks ended June 22, compared with 4.8% in the same period a year earlier, according to Kantar.

Aldi's market share for the 12-week period rose to 4.7%, compared with 3.6% for the 12 weeks ended June 23, 2013. Lidl's market share rose to 3.6%, up from 3.1% in the comparable period last year.

Tesco one of the big four supermarkets, saw its market share fall to 28.9% in the period, from 30.3% in the 12 weeks ended June 23, 2013, while Sainsbury's market share rose to 16.7% from 16.6%. Asda, a subsidiary of Wal-Mart Stores Inc., saw its market share rise to 17.1%, from 16.9%.

Morrisons market share fell to 10.9%, from 11.76% a year earlier.

Fraser McKevitt, consumer insight consultant at Kantar Worldpanel, said: Aldi and Lidl have recently announced impressive expansion plans. Aldi will aim to double its store numbers to 1,000 by 2021, while Lidl is seeking to boost its presence with an eventual total of 1,500 outlets.

"There are mixed fortunes for the big four with Tesco and Morrisons registering falls in both share and sales. By contrast, both Asda and Sainsbury's have increased share, beating the market average with growth rates of 3.6% and 3.0% respectively," McKevitt said.

-Write to Razak Musah Baba at [e-mail]; Twitter: @Raztweet

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