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Recent UK grocery sector sales data shows discount chain Aldi gaining market share, a reflection of discount stores’ rising popularity in general among UK grocery shoppers.
According to Kantar Worldpanel data for the 12 weeks ended January 2017, Aldi grew its market share just enough to climb into fifth place for the first time, fueled by a 12.4% year-over-year increase in sales. Fellow discounter Lidl also saw its market share expand incrementally during the period.
Driven primarily by those two retailers, the discount channel is on the rise in the UK. According to IGD, the segment’s sales rose nearly 41% in 2016 to £17.9 billion ($24.16 billion)—a considerably larger jump than the 0.9% increase seen for UK grocery sales overall last year. The discount channel’s share of total UK grocery sales grew nearly 3 percentage points to 10.0% for the year.
IGD expects discounters’ share of UK grocery sales to expand further in the next five years. The channel is expected to garner around 12.6% of the country’s grocery sales in 2021, with sales rising nearly 40% over 2016’s total to £24.9 billion ($33.61 billion).
The only segment growing faster than discounters, according to IDG, is online, which is predicted to increase 68.3% over the five-year period.
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